US Universities Could Face $70,000 Fee for Recommending International Students for OPT

American universities could face a major new expense when recommending international students for work authorisation under a proposed Department of Homeland Security rule that would introduce a $70,000 fee for initial participation in Optional Practical Training (OPT).

The proposal, published on October 8, 2026, would require institutions certified under the Student and Exchange Visitor Programme to pay $70,000 for an F-1 student's first OPT recommendation and $30,000 for any subsequent recommendation. The charges would apply before the institution's designated school official recommends the student for the programme.

The proposed fee structure would place universities at the centre of a policy designed to make international student employment more costly, with potential consequences for higher education budgets, graduate recruitment and businesses seeking skilled workers. OPT enables eligible international students to undertake work related to their academic specialisation. 

Students can generally obtain up to 12 months of practical training at each educational level, with qualifying STEM graduates eligible for an additional two years. Under the proposed rule, the initial fee would be a one-time charge for the student's first participation in any type of OPT, whether before or after graduation. Subsequent recommendations, including those associated with further OPT participation, would attract the lower $30,000 charge.

The requirement would not be tied to a particular employer. Instead, the institution would have to pay before recommending a student, regardless of which company might ultimately employ the graduate. Although schools would bear the formal payment obligation, the proposal leaves them room to determine how the expense is funded. They could absorb it, arrange for students or employers to cover the cost, or explore other funding arrangements.

That flexibility could create difficult decisions for universities, particularly those with substantial international student populations or limited resources to subsidise graduates seeking work experience. Joshua Kai, TCU's director of international services and university immigration officer, told the university's student publication that the institution would need to assess the final requirements and their implications before deciding how to respond. He said TCU could not yet commit to a specific funding arrangement or course of action.

The proposal also has implications for employers. Businesses recruiting international graduates could face higher costs if universities seek to recover the fees or if employers are asked to contribute towards them. Some institutions could also become more selective about which students they recommend for practical training.

NAFSA, the Association of International Educators, has warned that discouraging international students from remaining in the United States could affect innovation, economic growth, workforce development and the country's global position. The debate comes amid wider concerns about international student recruitment. New international student arrivals fell by 17 percent in the previous autumn intake, citing figures presented by the American Council on Education. Some individual institutions had also reported steeper declines.

DHS, however, argues that the proposed charges would address fraud and abuse within OPT, including arrangements involving questionable worksites and schemes in which students allegedly pay to maintain their immigration status without engaging in legitimate employment.

The department says the changes would strengthen the integrity of the immigration system and protect American workers from unfair competition.

The proposal is not yet law. Public comments on the rule are due by November 9, 2026, after which DHS will review submissions and decide whether to proceed. If finalised, the measure would take effect 60 days after publication of the final rule.