Full Breakdown
DHS Proposes $70,000 Fee for Optional Practical Training
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Core Proposal and Immediate Effects
On October 8, 2026, the U.S. Department of Homeland Security (DHS), acting through ICE, published a proposed rule that would require SEVP-certified colleges to pay $70,000 for each international student’s initial Optional Practical Training (OPT) recommendation and $30,000 for any subsequent recommendation, including the 24-month STEM OPT extension. The fee would be collected by the Treasury before a Designated School Official can enter the recommendation in SEVIS, and USCIS would not issue an Employment Authorization Document without payment. A student who completes a 12-month post-completion OPT and then a STEM extension could generate $100,000 in institutional fees.
Background: Prior Fee Initiatives
The proposal follows a $100,000 fee on H-1B visas that a federal court struck down earlier this year, as well as a September-blocked rule limiting student-visa duration to four years.
Financial Impact on Colleges
DHS estimates the rule could generate $12.4 billion in annual revenue. Its own analysis projects $4 billion per year in opportunity costs from reduced student work experience, employer productivity losses, and lower international enrollment. Roughly 60.5 % of small institutions could see costs exceeding 1 % of annual revenue, with 116 schools facing expenses over 20 % of revenue. Institutions would need new budgeting, accounting, and audit processes to manage the payments.
Official Statements & Responses
DHS released a press statement describing OPT as a “pipeline for cheap foreign labor” and asserting that the fee would prevent “exploitive schemes” and protect American workers. The agency said the rule would be published in the Federal Register and that a 60-day public comment period would follow. Comments are accepted through November 9.
Criticism & Opposition
- Doug Rand, former senior adviser at USCIS, predicted the fee would be struck down in court, as the earlier H-1B fee was.
- Steven Brown, a Houston-based immigration lawyer, called the proposal “the next level of attack” on the program.
Data & Statistics
- Current OPT filing fee for students is roughly $500.
- OPT authorizations for STEM graduates rose from ?27,500 in 2015 to >95,000 in 2024.
- International enrollment fell 17 % in the most recent fall cycle, with some colleges reporting drops of 30-40 %.
- DHS projects $12.4 billion in annual fee collections; the same analysis cites $4 billion in annual opportunity costs.
Conflicting Reports & Gaps
The agency’s figures present a discrepancy: one estimate forecasts $12.4 billion in revenue, while another predicts $4 billion in opportunity costs. Sources do not clarify how these numbers relate, leaving the net fiscal impact uncertain. The rule’s effect on non-STEM students and on institutions that already receive federal financial aid remains unaddressed.
What’s Next
The proposed rule is subject to the standard federal rulemaking process. Public comments are accepted until November 9, after which DHS must issue a final rule before the fees can take effect. No implementation date has been set; existing OPT and STEM OPT regulations remain in force until a final rule is published and any litigation is resolved. Institutions are advised to model potential exposures and review internal policies in preparation for possible enforcement.