The Department of Homeland Security (DHS) has proposed a rule that would impose substantial new fees on colleges and universities that recommend F-1 students for Optional Practical Training (OPT). Under the proposal, an SEVP-certified school would have to pay $70,000 before making an initial OPT recommendation for an F-1 student, and $30,000 for each subsequent OPT recommendation for that student. The proposal has not been finalized, and the new fees are not currently in effect.

How F-1 OPT Works Today

OPT allows international students to gain work experience in their field of study, typically for up to 12 months after completing a degree, with an additional 24-month STEM OPT extension available to eligible STEM graduates. Currently, the student’s school, through its Designated School Official (DSO), recommends the student for OPT in the government’s SEVIS system before the student applies to U.S. Citizenship and Immigration Services (USCIS) for work authorization.

Why DHS Is Proposing the OPT Fees

DHS states that the fees are intended to address fraud and abuse in the OPT program, protect U.S. workers, and offset the government resources devoted to OPT-related investigations. Notably, the proposed rule places the payment obligation on the educational institution rather than on the student or the employer. That structure, however, does not insulate students or employers from the consequences. Schools would have to decide whether they are willing and able to absorb tens of thousands of dollars each time they recommend a student for OPT, and DHS itself acknowledges that some institutions may choose not to pay the fees, resulting in reduced OPT participation.

What the OPT Fee Proposal Means for Employers and F-1 Students

For employers, the practical effect could be significant. Many U.S. companies rely on OPT as the primary pathway for hiring recent international graduates, often as a bridge to H-1B or other longer-term employment-based status. If fewer schools issue OPT recommendations, employers could face a much smaller pool of F-1 graduates authorized to work in the United States, particularly in STEM fields where they routinely recruit highly skilled entry-level talent. Prospective and current F-1 students should also be aware that a school’s willingness to fund OPT recommendations may become a meaningful factor in choosing a program. The proposal arrives amid a broader series of federal actions affecting international students and employment-based immigration, including changes and proposals involving Curricular Practical Training (CPT), F-1 status, and H-1B employment.

OPT Remains Available Under Current Rules

It is important to keep this development in perspective. This is a Notice of Proposed Rulemaking, not a final rule. DHS will accept public comments under Docket No. ICEB-2026-0100 and may revise the proposal before issuing a final rule. Given the size and structure of the proposed fees, the rule is likely to draw substantial attention during the comment period and, if finalized, may face legal challenge. For now, OPT remains available under existing regulations, and the proposed $70,000 and $30,000 fees do not apply. Students currently on OPT, or planning to apply in the near term, should continue to follow existing procedures and deadlines.

Questions About the Proposed OPT Fees? Contact Agarwal Law Group

Our team is closely monitoring this proposal and will provide updates as the rulemaking moves forward. If you are an employer that hires international graduates, or a student or school with questions about how this proposal could affect your plans, please contact our office at 703-348-1663 to schedule a consultation.

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