WASHINGTON — In a move that could send shockwaves through higher education institutions and corporate recruitment pipelines, the U.S. Department of Homeland Security (DHS) has proposed a sweeping new rule that would levy a hefty $70,000 fee on educational institutions for international students participating in the Optional Practical Training (OPT) program for the first time.
Under the newly proposed regulation, colleges and universities would also face an additional $30,000 fee for any subsequent OPT renewals. While standard international graduates are generally eligible for one year of post-graduation work authorization, students completing degrees in designated science, technology, engineering, and math (STEM) fields can currently utilize extensions for up to three years.
The administration defends the unprecedented cost requirement as a necessary measure to curb program fraud and combat what officials describe as the exploitation of the student visa framework as a pipeline for low-cost foreign labor.
However, the announcement has drawn immediate and fierce pushback from higher education advocacy groups, academic leaders, and business organizations. Critics warn that the exorbitant fees will severely discourage brilliant global talent from choosing American universities, ultimately undermining U.S. technological innovation, economic vitality, and workforce development.
Universities heavily rely on international enrollment for vital tuition revenue, while domestic and multinational tech corporations depend on OPT pathways to bridge critical domestic labor shortages in high-tech fields. Education advocates point out that driving away global scholars risks hurting America's competitive edge on the world stage.
The public currently has a 60-day window to submit formal comments on the proposal before federal agencies can look toward finalizing it. Legal analysts and immigration experts anticipate that the rule will likely face aggressive challenges in federal courts, drawing parallels to previous attempts by the administration to impose high-bracket fees on H-1B skilled work visas.