The Trump administration has proposed requiring US universities to pay a $70,000 fee when recommending an international student for temporary work authorisation after graduation.
The proposal would apply to students on F-1 visas seeking Optional Practical Training (OPT), a programme that allows eligible foreign students to work temporarily in the US in fields related to their studies. Under the proposed rules, universities would pay $70,000 for a student’s first OPT recommendation and $30,000 for each subsequent recommendation, including eligible extensions.
The Department of Homeland Security (DHS) says the changes are intended to combat fraud, encourage universities to scrutinise applications more closely and protect US workers.
“Optional Practical Training was never meant to be a back door into the American workforce, a subsidy for cheap labor, or a prize for those who game the system,” a DHS spokesperson said. “DHS is upskilling OPT to require foreign students to justify their worth to employers. American workers should not have to compete against a program that has been turned into a pipeline for cheap foreign labor.”
How Would the New Fees Work?
Universities certified to enrol foreign students would have to pay the fee before recommending a student for OPT.
US Citizenship and Immigration Services (USCIS) could deny temporary work authorisation if the required payment had not been made.
Under current rules, eligible F-1 students can receive up to 12 months of OPT for work related to their field of study. Graduates with qualifying STEM degrees can receive an additional 24-month extension.
DHS says the proposed fee would encourage universities to recommend only students considered the most promising and whose training is directly related to their studies.
The proposal says the aim is to reduce participation in OPT so that it is not used as a pathway into the US workforce.
Although universities would be responsible for paying the fees, the costs could ultimately be passed on to students or employers. Schools could also become more selective about which students they recommend.
“Imposing this new fee structure on Optional Practical Training is the latest in a series of developments that creates deep uncertainty for international students,” said Fanta Aw, executive director and CEO of NAFSA: Association of International Educators.
Why it Matters For Indian Students
The proposal could have a significant impact on Indian students, who make up the largest group of international students in the US. Some 363,019 Indian students attended US institutions in the 2024-25 academic year, accounting for about 31% of all international students, according to the figures provided.
Indian participation in OPT reached 143,740, an increase of 47% in one year. Almost half of Indian students were graduate students, with many studying computer science, mathematics and engineering.
Students graduating in qualifying STEM fields can remain in OPT for up to three years. About 418,000 students had OPT work authorisation in 2024, according to the figures provided.
Fraud and US Worker Concerns
DHS says it has identified fraud and other problems within the OPT system. The proposal cites a 2020 visa fraud case involving a businesswoman who allegedly provided fraudulent employment documents to at least 2,693 foreign nationals, most of them Chinese OPT participants.
In another 2020 operation, Immigration and Customs Enforcement arrested 15 students accused of fraudulently using OPT to remain in the US.
DHS also says investigators identified about 10,000 OPT participants working for “highly suspect employers”, including cases where residential homes were listed as business locations, multiple companies shared addresses and employment records were missing.
The department has also raised concerns that OPT participants could displace US workers because they may be cheaper to employ.
The proposed changes would not prevent international students from studying in the US. But universities could face a significant new cost if they recommend graduates for OPT.
