US proposes $70,000 OPT fee per student, raising concerns for Indian graduates

A US Department of Homeland Security proposal could require universities to pay up to $70,000 per international student for Optional Practical Training (OPT), with an additional $30,000 for STEM OPT extensions. The proposal, which is open for public comment until November 9 and not yet in effect, could significantly impact Indian students who rely on OPT as a pathway to H-1B employment.

Washington:  Indian students hoping to work in the United States after graduation could see their universities charged $70,000 each for Optional Practical Training under a Department of Homeland Security proposal, a plan that is not yet in effect and is open to public comment until November 9.

The proposed rule, published in the Federal Register on October 8 (document 2026-20660) by US Immigration and Customs Enforcement, would set “$70,000 for initial OPT; and $30,000 for any subsequent OPT” for each F-1 student through a Student and Exchange Visitor Program-certified institution.

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The subsequent fee would apply to the 24-month STEM OPT extension. A student who uses both pre-completion and post-completion OPT would face a total of $100,000, the document says, compared to $70,000 if the entire OPT period is after graduation.

It is not in effect yet. It is a notice of proposed rulemaking. Comments must be received by November 9, under docket ICEB-2026-0100 on regulations.gov. DHS must review comments before issuing any final rule, and no implementation date has been set.

The fee would be paid by the institution before a designated school official recommends a student for OPT. But DHS “acknowledges that the schools may pass the financial obligation of this proposed fee onto F-1 nonimmigrant students, all students, or employers.”

Schools could seek a refund if the student does not receive an OPT employment authorisation document.

DHS says the fee would “reduce the rampant fraud and abuse of OPT”, protect US workers and ease the burden of OPT investigations. It says the fees are intended to discourage students from using OPT “to market themselves to employers seeking to bypass H-1B caps, fees, and prevailing wage requirements.”

DHS uses 2024 figures of 194,554 OPT and 95,384 STEM OPT participants.

DHS projects annualised transfers of $12.8 billion as a primary estimate (3 per cent discount rate), and 10-year transfers of $109.4 billion.

Indians are the largest group of international students in the United States, and OPT is the usual bridge from a US degree to an H-1B job.

Universities weighing a $70,000 charge per student may limit OPT support, particularly for non-STEM courses, where DHS itself assumes institutions “may be less likely to pay” for a single year.

The proposal comes on top of the $100,000 H-1B fee policy now in litigation and a separate DHS rule ending automatic extensions of work permits.