US OPT Proposal Could Cost International Graduates Up to $100,000 in Work Authorisation Fees

The US Department of Homeland Security (DHS) has proposed a fee of $70,000 for the first Optional Practical Training (OPT) recommendation for an international student, with subsequent recommendations attracting $30,000 charges. 

The proposal, published in the Federal Register on 8 October 2026, could increase the cost of gaining work experience in the United States after graduation. Under the proposed rules, colleges and universities would be required to pay the fees before recommending eligible students for employment authorisation. 

Institutions would be allowed to recover the costs from students, employers or other funding sources, potentially increasing the financial burden on international graduates. The proposal is not yet law, and existing OPT arrangements remain in place as DHS reviews public submissions. The department must consider feedback before deciding whether to introduce the charges.

OPT allows eligible F-1 international students to work in jobs directly related to their field of study. Students must obtain a recommendation from their designated school official (DSO) and apply to US Citizenship and Immigration Services (USCIS) for employment authorisation.

The programme provides graduates with an opportunity to gain professional experience in the United States. It can also help them explore longer-term immigration options after completing their studies.

Under the main proposal, a student's first OPT recommendation would attract a $70,000 fee, while each subsequent recommendation would cost $30,000. The charges would apply to both employment undertaken before completing a course and training pursued after graduation. Educational institutions, rather than individual employers, would be responsible for making the payments.

The proposed system could change how universities assess requests for OPT recommendations. Institutions would need to consider not only whether students meet the academic and administrative requirements but also whether the financial commitment is justified.

The timing of a student's training would also affect the total cost. Standard OPT generally allows up to 12 months of employment authorisation, with any pre-completion OPT reducing the time available after graduation.

A student who receives a recommendation for pre-completion OPT and later applies for post-completion OPT could therefore generate a combined institutional bill of $100,000. By comparison, a student whose first recommendation covers only post-completion OPT would attract the initial $70,000 charge.

Graduates who qualify for a STEM OPT extension, which provides additional work authorisation in science, technology, engineering and mathematics, would face a further $30,000 fee. The same charge would apply to other subsequent OPT recommendations covered by the proposal.

Changing employers would not, by itself, trigger another payment because the proposed fee would be linked to the recommendation rather than the employment relationship. The proposal would also introduce a payment requirement into the application process. 

A college would have to pay the applicable fee before its DSO could record the OPT recommendation in the Student and Exchange Visitor Information System (SEVIS).

The student would then receive an updated Form I-20 reflecting the payment details. USCIS would not be able to approve the employment authorisation unless the required fee had been paid.

Refunds would be restricted under the proposed arrangement. An institution could request a refund before the employment authorisation document was issued, but no refund would be available after that point. Colleges and universities would therefore risk losing substantial sums even when a student's employment prospects remained uncertain.

Although institutions would be formally responsible for paying the fees, DHS would allow them to pass the costs on to other parties. Universities could seek contributions from students, employers or alternative funding sources, leaving the final financial burden dependent on individual arrangements and institutional policies.

This could create additional difficulties for students who have already spent considerable sums on American education. Some universities might introduce extra charges, seek financial support from employers or limit the number of students they recommend for OPT.

DHS also acknowledges that institutions could decide not to support students whose employment prospects do not justify the expenditure. For international graduates, this could make it more difficult to secure practical experience after earning an American degree. Students with limited financial resources could be particularly disadvantaged, even if they have the academic qualifications and professional skills employers require.

“For the Indian students, who have invested a lot of money in U.S. education, the value of their study abroad will be diminished as employers will be less inclined to hire them even if they meet qualifications,” said Sanjay Laul, founder of MSM Unify.

He added that the proposal could hurt both students and universities by encouraging investment in qualifications for which there might be limited opportunities in the local labour market. DHS says the proposed fees are intended to address fraud and abuse within OPT, strengthen the integrity of the immigration system and protect American workers. 

The department also argues that the charges would help cover administrative expenses and reduce the resources required for investigations. Officials have presented the measure as an initial intervention, suggesting that further changes to the programme could follow.

However, the projected revenue from the proposed fees indicates the scale of the financial implications. DHS estimates that approximately 194,000 OPT participants and 95,000 STEM OPT participants were active in 2024. It projects that the proposed system could generate between $8.4 billion and $16.5 billion annually.

The charges could be particularly difficult for smaller educational institutions to absorb. More than 56 per cent of institutions certified under the Student and Exchange Visitor Programme (SEVP) are estimated to qualify as small entities, potentially leaving them more exposed if they cannot recover the costs from students or employers.

The effects could also extend to employers that recruit international graduates for technical, scientific and other specialised positions. If universities become more selective about recommending students for OPT, businesses could have fewer eligible candidates to choose from.

Additional costs could also influence hiring decisions, including in cases where international graduates possess the necessary qualifications and experience.

Universities would face competing pressures to maintain international student enrolment, support graduates and manage their budgets. If institutions restrict OPT recommendations, students could lose access to a programme that has traditionally connected international education with employment opportunities.

The consequences could be particularly significant in STEM fields, where qualifying graduates can use the extension to gain additional professional experience in the United States. DHS is also seeking public feedback on a more expensive alternative. Under this option, the initial $70,000 charge would apply again when a student begins OPT at a higher level of education.

A graduate who completes a bachelor's degree and subsequently enrols in a master's programme could therefore face the initial fee twice. This is an alternative under consideration and is not part of the principal proposal.

The proposed OPT charges come amid a wider debate over the costs and conditions attached to employment-based immigration in the United States. They follow separate controversy surrounding a proposed or imposed $100,000 H-1B fee, which has faced legal challenges.

However, OPT and H-1B are different immigration arrangements. Developments in the H-1B litigation would not automatically determine the outcome of the OPT proposal.

For now, students and universities are not required to pay the proposed charges. DHS has set 9 November 2026 as the deadline for public comments before it decides whether to issue a final rule.

Under the proposed timetable, the new requirements would take effect 60 days after publication of the final rule. If adopted, the fees would apply to OPT recommendations dated on or after the effective date.