Trump administration proposes $70,000 fee for foreign graduates to work in US

The U.S. Department of Homeland Security has proposed a rule to charge universities $70,000 for an international graduate's first year of Optional Practical Training (OPT) and $30,000 for extensions. Aimed at protecting American workers and combating fraud, the rule shifts the financial burden to schools. The proposal, affecting a program that supported 418,000 students in 2024, is part of broader immigration restrictions and is highly likely to face swift legal challenges from business groups.

Proposed OPT fee structure

• ▪If finalized following a public comment period, the fees under the proposed Optional Practical Training Fees rule would take effect 60 days after publication and apply prospectively to new recommendations
• ▪Under the proposed Optional Practical Training Fees rule, certified universities and schools—rather than employers or students—would be required to pay the Optional Practical Training fees for authorized students
• ▪Under the Department of Homeland Security's proposed Optional Practical Training Fees rule, an additional $30,000 fee would be charged for subsequent Optional Practical Training recommendations, including 24-month STEM extensions
• ▪The U.S. Department of Homeland Security proposed a rule on October 7, 2026, to charge $70,000 for an international student's first 12-month Optional Practical Training recommendation

Justification for the OPT fee rule

• ▪The U.S. Department of Homeland Security stated that the fees proposed under its Optional Practical Training Fees rule aim to combat fraud, address suspected "pay-to-stay" schemes, and protect American workers
• ▪A Department of Homeland Security spokesperson characterized the Optional Practical Training program as a "back door" into the workforce and stated the Optional Practical Training Fees rule would require foreign students to justify their worth

Legal challenges to OPT

• ▪Business groups opposed a long-running legal challenge against the Optional Practical Training program that a federal court rejected in 2023, arguing that the program is a critical component of the science, technology, engineering, and mathematics talent pipeline
• ▪A federal court in 2023 rejected a long-running legal challenge that sought to block the U.S. Optional Practical Training program

Debatable claims

• ▪Charging universities for OPT recommendations is an effective way to curb immigration fraud
• ▪The proposed OPT fees will damage the US STEM talent pipeline
• ▪The US should eliminate post-graduation work options for international students