DHS Proposes $70,000 OPT Fee for Foreign Students
The Department of Homeland Security has proposed requiring schools to pay a $70,000 fee for each international student initially recommended for Optional Practical Training, a major change that, if finalized, could significantly reshape a key work authorization program for F-1 student visa holders.
The proposal is contained in a Notice of Proposed Rulemaking, meaning the fee is not currently in effect. DHS must review public comments and publish a final rule before the proposed changes could be implemented.
The proposed rule also would require a $30,000 fee for each subsequent OPT recommendation for the same student, including recommendations for post-completion OPT or the 24-month extension available to eligible graduates in science, technology, engineering and mathematics fields.
Optional Practical Training allows eligible F-1 students to work in positions directly related to their major field of study. Students generally may receive up to 12 months of OPT at each educational level, while eligible STEM graduates may receive an additional 24 months.
Under the proposal, the fees would be paid by schools certified through the Student and Exchange Visitor Program, rather than directly by students or employers. However, the proposed regulation would not restrict how schools finance the fees, leaving open the possibility that institutions could seek reimbursement or other financial contributions from students, employers or outside entities.
If the proposal is finalized, designated school officials would not be able to enter an OPT recommendation into the Student and Exchange Visitor Information System until the school pays the required fee. Students would then receive an updated Form I-20 showing the recommendation and payment information before applying to U.S. Citizenship and Immigration Services for employment authorization.
USCIS would not approve an OPT application if the school had not paid the applicable fee, according to the proposed rule.
The proposed initial $70,000 fee would apply when a student is first recommended for any type of OPT, whether pre-completion or post-completion. A $30,000 fee would apply to every subsequent OPT recommendation for that student, including a STEM extension.
For example, if a school first recommends a student for pre-completion OPT and later recommends the same student for post-completion OPT, the school would pay $70,000 for the first recommendation and $30,000 for the second, for a total of $100,000.
The proposed fee would not be tied to a particular employer or triggered by a change of employer.
DHS said it is proposing the fees to combat fraud and abuse, strengthen program oversight and protect U.S. workers. The department cited concerns involving questionable worksites, “pay-to-stay” visa schemes and inadequate oversight by some schools, employers and school officials.
DHS acknowledged that the proposed fees could reduce participation in OPT. The department said students could lose access to work experience and related earnings, employers could have difficulty replacing qualified student workers, and some schools could see declines in international student enrollment.
DHS estimated that annual fees collected under the proposal could range from $8.4 billion to $16.5 billion, with a primary estimate of $12.4 billion. The money would be deposited in the U.S. Treasury and would not be retained by Immigration and Customs Enforcement for program operations.
DHS is accepting public comments on the proposed rule from Oct. 8 through Nov. 9. The agency also is seeking comments on an alternative approach that would require the $70,000 initial fee again when a student moves to a higher educational level, such as from a bachelor’s degree to a graduate degree.
The proposal does not itself impose the $70,000 or $30,000 fees. Any such fees would take effect only if DHS proceeds with the rulemaking and publishes a final rule adopting the requirements.