The US Department of Homeland Security has proposed a significant overhaul of the Optional Practical Training program that allows international students on F-1 visas to work in the United States after completing their studies. Under the proposal announced on 7 October 2026, schools would be required to pay a USD 70,000 fee for each student’s initial OPT recommendation and a USD 30,000 fee for any subsequent recommendation, including STEM extensions. These figures represent proposed institutional fees rather than charges currently levied directly on students.
If finalised, the rule would fundamentally alter the economics of post-graduation work authorisation for hundreds of thousands of international graduates and the universities that enrol them.
Understanding the Current OPT Framework
Optional Practical Training permits eligible F-1 students to engage in temporary employment directly related to their field of study. Standard post-completion OPT provides up to 12 months of work authorisation. Graduates with qualifying STEM degrees may apply for an additional 24-month extension. The program has long served as a bridge between academic training and potential longer-term employment pathways such as the H-1B visa.
Until now, the primary costs borne by students have been relatively modest filing fees associated with the employment authorisation application. Schools have recommended students for OPT without paying large institutional charges. The new proposal would insert a substantial financial barrier at the recommendation stage.
How the Proposed Fees Would Work
Under the draft rule, Student and Exchange Visitor Program-certified schools must pay the fee before a designated school official can recommend a student for OPT in the SEVIS system. US Citizenship and Immigration Services would be barred from approving employment authorisation if the required payment has not been made.
The USD 70,000 fee would apply to the first OPT recommendation after the rule takes effect, whether for pre-completion or post-completion training. Any later recommendation for the same student, including a STEM OPT extension, would trigger the additional USD 30,000 charge. The fees are not tied to a specific employer. Collected amounts would be deposited in the US Treasury.
DHS has indicated that schools would be permitted to recover the costs from students or employers, though the formal payment obligation rests with the institution.
Stated Objectives of the Proposal
Officials have framed the fees as a response to identified fraud and abuse within the OPT system. The Student and Exchange Visitor Program has reported schemes involving problematic worksites and arrangements that appear designed primarily to extend visa status rather than provide genuine practical training. DHS argues that high fees would encourage schools to exercise greater selectivity and oversight when recommending students.
The department has also linked the proposal to the protection of American workers, describing OPT as a pathway that can introduce lower-cost labour into the domestic job market. By raising the financial threshold for participation, the rule aims to reduce overall numbers and ensure that only the most carefully vetted cases proceed.
Potential Consequences for Students
For international students, the practical effect could be substantial. Even if universities absorb part of the cost, many are likely to pass some or all of the expense on to students or their future employers. A total of up to USD 100,000 for a student pursuing both standard OPT and a STEM extension would represent a dramatic increase in the overall cost of studying and working in the United States.
Students from countries where family resources are more limited, or those attending less wealthy institutions, may find OPT effectively inaccessible. The prospect of such large fees could also influence decisions about where to study, with some prospective students opting for countries that offer more straightforward post-study work options.
Career planning would become more complex. Students who previously viewed OPT as a relatively accessible way to gain US work experience and build professional networks would need to factor in the possibility of six-figure institutional costs. Employers, particularly smaller companies or start-ups, might prove reluctant to hire international graduates if they are asked to contribute to the fee.
Implications for Universities
Higher education institutions face difficult choices. Large research universities that enrol significant numbers of international students could confront multi-million-dollar annual liabilities if they continue recommending OPT at current volumes. Some may scale back recommendations, limit them to certain high-demand fields, or require students to demonstrate that an employer will cover the cost.
The proposal arrives at a time when many American universities rely on international enrolment for both academic diversity and revenue. A sharp reduction in the attractiveness of post-graduation work opportunities could affect recruitment pipelines, particularly in STEM disciplines where OPT and STEM extensions have been especially popular.
Status of the Rule and Next Steps
The fees are not currently in effect. DHS has opened a public comment period running from 8 October through 9 November 2026. After reviewing feedback, the department will decide whether to finalise the rule as proposed, modify it, or withdraw it. If a final rule is issued, it would take effect 60 days after publication and would apply only to new recommendations made on or after that date.
Legal challenges are widely anticipated, given the scale of the proposed charges and the economic stakes for universities, students and employers. Similar high-fee proposals in other immigration categories have faced court scrutiny in recent years.
A Changing Landscape for International Talent
The OPT fee proposal forms part of a broader policy emphasis on tightening pathways that allow foreign graduates to enter the US labour market. For international students currently enrolled or considering American universities, the immediate priority is to understand that the fees remain proposals only. Existing OPT processes continue under current rules while the comment period and subsequent decision-making unfold.
Should the rule advance in its present form, it would rank among the most consequential changes to the F-1 work framework in decades. The combination of high institutional fees, potential cost-shifting to students, and heightened scrutiny would reshape both the financial calculus of studying in the United States and the practical availability of post-graduation work experience for the next generation of international talent.
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