US states challenge $100,000 fee pan for international student post-study work training

A California-led coalition of US state attorneys general has opposed a proposed $100,000 OPT fee on international students, warning it could discourage foreign enrolment, burden universities and harm the American economy, particularly affecting Indian students seeking post-study work opportunities

Washington: A California-led coalition of state attorneys general has urged the US government to withdraw a proposal requiring universities to pay as much as $100,000 for an international student’s post-study work training, warning that the measure could deter foreign enrolment and hurt the American economy.

California Attorney General Rob Bonta said on Tuesday (local time) that the coalition had submitted formal objections to the Department of Homeland Security (DHS) on Monday. The proposed rule targets Optional Practical Training (OPT), a programme that allows foreign students on F-1 visas to work in fields related to their studies.

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Under the proposal, colleges and universities would pay $70,000 when they first recommend a student for OPT and another $30,000 for a subsequent recommendation, including an extension available to eligible graduates in science, technology, engineering and mathematics. The institutions would be required to send the payments to DHS. They could seek reimbursement from students or employers, potentially shifting some of the burden to graduates looking for work.

The proposal was published on October 8. It has not taken effect. Bonta said the plan threatened students, campuses and employers that rely on international talent. “We have already fought and won against this Administration’s attempt to impose an unauthorised $100,000 tax on H-1B visas, yet it continues to pursue unlawful overreach at the expense of our students, universities, and economy,” he said.

The coalition argued that DHS lacked congressional authority to impose what it described as a tax disguised as a fee. It said the proposal violated the Immigration and Nationality Act and the Administrative Procedure Act because the government had not adequately weighed the costs to states, schools and the wider economy. The attorneys general also objected to the 30-day public comment period, saying it was too short for a policy with potentially sweeping financial consequences.

More than 294,000 international students participated in OPT nationwide during the 2024-25 academic year. It is estimated that maintaining current participation levels under the proposed charges could cost educational institutions $12.9 billion a year. The coalition warned that the fees could force some universities to stop recommending students for the programme.

Others could face falling international enrolment, reduced tuition income and difficulties attracting skilled graduates. For Indian students considering American universities, the dispute raises questions about access to work experience after graduation. The proposed payment would formally fall on institutions, but the rule would allow them to recover the costs from students or employers.

“International students bring diverse perspectives, strengthen our communities, and help drive discoveries and technological advancements that benefit us all,” Bonta said. He also cited the economic stakes in California, where international students contributed $6.3 billion and supported more than 52,000 jobs in the 2024-25 academic year. Attorneys general from states including New York, New Jersey, Maryland, Massachusetts, Michigan, Illinois, Washington and Virginia joined California’s submission. The District of Columbia was also among the signatories.