US proposes $70,000 fee for first-time OPT participation by international students

The US has proposed a $70,000 fee for educational institutions when their first-time international students enroll in the Optional Practical Training (OPT) program, a move aimed at combating fraud and perceived abuse of the program. The Department of Homeland Security (DHS) announced the proposed rule on Wednesday, detailing that each subsequent renewal of OPT would incur a $30,000 fee.

OPT permits international students holding F-1 visas to work in the US after completing their studies, generally for up to one year, with three years for STEM graduates. This proposal follows political criticism of programs that allow post-graduation work by international students, with some arguing these schemes enable foreign workers to compete with American workers.

India is the leading source of international students in the US, with over 3.63 lakh Indian students enrolled in US institutions during the 2024-25 academic year. International students' contributions to local economies are estimated at $41.77 billion for the 2025-26 academic year, projected to decrease to $38.37 billion in 2026-27.

The DHS claims the proposed fee targets fraud and abuse in OPT, describing it as a "pipeline for cheap foreign labour." Officials from the DHS stated that the Student and Exchange Visitor Program (SEVP) has identified issues such as exploitative worksites and "pay-to-stay" arrangements where students maintain their visa status without legitimate employment or training.

The proposed rule will be open to public comments for 60 days before DHS decides whether to finalize and implement it, potentially facing legal challenges from higher education groups and business associations.