The U.S. Department of Homeland Security proposed a new rule on Wednesday requiring schools to pay up to $70,000 for each international student recommended for post-graduation practical training, alongside a $30,000 fee for subsequent extensions. The administration cited fraud prevention and labor protections.
Department of Homeland Security Proposes New OPT Fees
Under the U.S. Department of Homeland Security proposal issued on October 8, 2026, Student and Exchange Visitor Program-certified institutions would face substantial new charges before designated school officials could submit Optional Practical Training recommendations in the federal database. The initial fee of $70,000 applies to an F-1 nonimmigrant student’s first participation in the program, while any subsequent recommendation or STEM OPT extension incurs an additional $30,000 charge per student.
U.S. Citizenship and Immigration Services would not grant employment authorization until the required payment is completed. The rule does not affect Curricular Practical Training, focusing entirely on post-graduation and pre-completion practical training authorizations administered through SEVIS. A student combining initial post-completion training with a STEM extension could generate up to $100,000 in total institutional fees under the current framework.
Educational institutions would be responsible for paying the required amounts to the U.S. Treasury before a designated school official enters an OPT recommendation into the Student and Exchange Visitor Information System and issues an updated Form I-20 certificate of eligibility. Agency estimates indicate that the proposed framework could generate between $8.4 billion and $16.5 billion annually, establishing a primary estimate of approximately $12.4 billion after the initial year.
Agency Defends Training Program Against Fraud Allegations
According to the agency, the optional training program has experienced rapid growth that outpaced investigative capacity, with 294,250 international students participating in OPT during the 2024/2025 academic year, comprising roughly one-quarter of the international student population. Federal officials defended the financial requirements as necessary safeguards against abuse.
Immigration and Customs Enforcement previously identified more than 10,000 cases of potential fraud linked to the training initiative, according to agency records. The agency pointed to investigations involving shell companies, falsified documents, and nonexistent employers to justify stricter oversight.
The policy follows previous administrative measures targeting work authorization frameworks, including an $100,000 fee proposed for H-1B specialty occupation visas and separate restrictions placed on permanent residency sponsorship for certain technology and staffing firms.
Institutions Face Higher Education Budget Pressures
Indian students accounted for roughly 31 percent of all foreign enrollment in the 2024-25 academic year, with 363,019 Indian students attending U.S. institutions. Higher education associations warned that the steep levies would deter institutions from enrolling foreign scholars.
Data from the Institute of International Education showed that more than 294,250 international students participated in the training pathway during that academic term, comprising approximately one-quarter of the nation’s total international student population.
Leaders from NAFSA: Association of International Educators criticized the initiative, stating that driving away the talents, perspectives, and aspirations of international students will only hurt American innovation, economic growth, workforce development, and global leadership. Sarah Spreitzer, vice president at the American Council on Education, noted that international enrollment has already suffered declines, pointing out that new student arrivals dropped by 17 percent during the fall term following previous rule changes.
Legal Experts Anticipate Courtroom Battles
The public has until November 9, 2026, to submit comments on the proposed rule, with comments on related information collections due by December 7, 2026. Once the comment periods close and feedback is reviewed, any finalized regulation would take effect sixty days after publication in the Federal Register.
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