The Department of Homeland Security (DHS) announced a proposed rule on Wednesday that would drastically alter the financial landscape for international students seeking post-graduate work experience in the United States. The proposal targets the Optional Practical Training (OPT) program, which currently allows foreign graduates holding F-1 visas to gain temporary employment directly related to their field of study. Under the new rule, colleges and universities would be subject to fees potentially reaching $100,000 per international student participating in the program, a dramatic shift from the current system where students pay modest application fees and institutions incur no direct costs.
"Access to employment after graduation is a major reason international students choose to attend universities in the United States." Sarah Spreitzer, Vice President of the American Council on Education
Specifically, DHS is proposing a $70,000 fee for universities to recommend an international student for initial OPT authorization. Should a student require additional work authorization or an extension, such as the 24-month extension available to those with degrees in science, technology, engineering, and mathematics (STEM) fields, universities would face an additional $30,000 charge. These proposed fees represent a monumental increase from the current system, where international students typically pay around $500 in application fees, and universities do not bear comparable charges for their participation in the OPT process. The financial burden would shift directly to educational institutions, which could then pass some or all of these costs on to students or employers.
The Trump administration justifies the proposal by asserting that the OPT program is susceptible to abuse. DHS officials contend that some employers might exploit the program to hire temporary foreign workers at lower wages, thereby circumventing the hiring of American workers at prevailing market rates. The department frames these substantial fees as a mechanism to deter misuse and compel universities to exercise greater selectivity in recommending students for employment authorization. Furthermore, DHS has characterized the proposal as a measure designed to bolster immigration enforcement and prevent fraud within the system.
Critics of the proposed rule have voiced significant concerns regarding its potential far-reaching implications for American higher education and international student enrollment. Fanta Aw, CEO of NAFSA, an organization dedicated to international education, warned that such exorbitant fees could severely diminish the United States' appeal as a destination for foreign students. Aw emphasized the invaluable contributions international graduates make to American research, innovation, and workforce development across various sectors. The American Council on Education (ACE) echoed these concerns. Sarah Spreitzer, ACE’s vice president, highlighted that the prospect of gaining post-graduation employment is a primary motivator for international students choosing to pursue their degrees in the U.S. She cautioned that if this opportunity becomes prohibitively expensive, many prospective students may opt for universities in other countries.
The proposed changes come at a time when international student enrollment in the United States is already experiencing a downturn. Data indicates a 17% drop in the number of new foreign students entering the U.S. last fall, marking the steepest decline since the COVID-19 pandemic. Some universities have reportedly observed even more significant drops of 30% to 40% this year, although comprehensive national figures are still pending. International students are also a crucial revenue stream for many colleges and universities, frequently paying higher tuition rates than their domestic counterparts. A sustained decline in enrollment could therefore lead to significant budget shortfalls for these institutions, potentially impacting academic programs, staffing levels, and critical research operations.
This OPT proposal is consistent with a broader strategy by the President Trump administration to tighten immigration regulations affecting foreign students and workers. Previous efforts have encompassed changes to student visa requirements, employment authorization processes, and increased costs associated with the H-1B visa program. The new rule was officially published in the Federal Register on October 8. A public comment period has been initiated and will remain open until November 9, allowing stakeholders to provide feedback. DHS will meticulously review these comments before making a final decision on whether to implement the rule. If the proposal is finalized, the department plans to delay its implementation for 60 days to provide universities, students, and employers adequate time to prepare for the changes. Until then, the existing OPT rules and current application fees will remain in effect.
