Trump Proposes $70,000 Fee for International Students Seeking US Work Experience

The Trump administration has proposed a major increase in the cost of allowing international students to gain work experience in the United States, with a proposed fee of $70,000 for initial participation in the Optional Practical Training (OPT) programme. The proposal, issued by the US Department of Homeland Security (DHS), could reshape decisions for students planning to study in America and for universities that recruit international talent. Source: The Economic Times.

The proposed charge would be paid by eligible educational institutions for each student’s initial OPT recommendation, rather than automatically being a $70,000 bill issued directly to the student. DHS has also proposed a $30,000 fee for subsequent OPT recommendations. The measure is not yet a final rule, meaning the proposal could change after public feedback or face legal challenges. Source: Reuters.

What Is the Proposed $70,000 OPT Fee?

Optional Practical Training, commonly known as OPT, allows eligible international students holding F-1 visas to work in the United States in jobs related to their academic field. The programme is an important route for graduates to apply what they learned in college while gaining professional experience.

Under the proposed rule, schools certified by the Student and Exchange Visitor Program would pay $70,000 when recommending an F-1 student for initial OPT participation. A further $30,000 charge would apply to subsequent recommendations covered by the proposal.

The proposal represents a substantial change from the existing system, under which the standard application fee for post-completion OPT has generally been around $470, although other costs may apply in particular circumstances. The proposed institutional charge is therefore many times higher than the current student application fee.

The administration argues that the new fee would help address fraud and abuse in the OPT programme, strengthen immigration-system oversight and protect American workers. DHS has also argued that the programme should not become a route for employers to access lower-cost foreign labour.

How the OPT Programme Works

OPT gives eligible international students temporary work authorisation connected to their studies. It is particularly important for graduates who want to gain experience in fields such as software engineering, data science, research, finance and other professional occupations.

The main features of the programme include:

Feature	Existing OPT framework
Eligible students	Certain international students on F-1 visas
Work requirement	Employment must relate to the student’s field of study
Standard post-completion OPT	Generally up to 12 months
STEM extension	Eligible graduates may qualify for an additional 24 months
Proposed initial institutional fee	$70,000 per student
Proposed subsequent recommendation fee	$30,000

Eligible graduates in science, technology, engineering and mathematics (STEM) fields can qualify for an additional 24-month extension, potentially allowing up to three years of OPT work authorisation in total. Eligibility requirements and the applicable rules still govern each case.

OPT can also provide graduates with time to build experience before seeking other employment-based immigration options, including sponsorship for an H-1B visa. However, OPT does not guarantee a job, an H-1B visa or permanent residency.

Why the Trump Administration Wants to Change the Rules

The proposed fee forms part of the administration’s wider effort to tighten immigration controls and increase scrutiny of foreign students and workers.

DHS says the measure is intended to reduce fraud and abuse in OPT and to make institutions weigh the costs of recommending students for the programme. Under the proposal, universities and other eligible institutions would need to assess whether participation remains financially viable.

The administration has characterised OPT as a system that can be exploited to provide employers with comparatively inexpensive foreign labour. Its approach reflects a broader policy emphasis on protecting US workers and restricting perceived misuse of temporary immigration pathways.

Critics, however, argue that a fee of this size could discourage legitimate international graduates and reduce the ability of US employers to recruit skilled workers. The debate is therefore not only about immigration enforcement but also about how American universities and businesses compete for global talent.

What the Proposal Could Mean for Indian Students

Indian students could be among those most closely affected because many pursue US degrees in engineering, computer science, information technology and other fields where OPT is commonly used to gain work experience.

For students considering an American university, the proposal introduces a new uncertainty into the overall cost-benefit calculation. Tuition, accommodation, living expenses and education loans already make studying in the United States a major financial commitment. A policy that makes post-study employment more difficult could influence whether prospective students choose the US or consider other destinations.

The actual financial impact on students would depend on how institutions respond. If a university absorbs the proposed fee, students might not face a direct charge. If institutions decide that the cost is too high, however, they could reduce OPT recommendations, change recruitment strategies or reconsider how they support international graduates. Some employers could also become more cautious about hiring graduates whose work authorisation depends on the programme.

These outcomes are possible consequences, not confirmed changes in university policy. The proposal does not establish that every international student will personally have to pay $70,000.

Impact on US Universities and Employers

American universities recruit international students for academic, research and financial reasons. International tuition revenue can support university operations, while overseas students contribute to research teams, laboratories and campus communities.

If the proposed fees make OPT participation prohibitively expensive, some institutions may reassess the number of students they recommend for work authorisation. Smaller institutions could face particular pressure if they lack the financial resources to absorb substantial new costs.

Businesses that recruit international graduates could also be affected. Technology companies, research organisations and other employers use OPT to evaluate and hire graduates with relevant skills. A reduction in the number of graduates able to participate could narrow the available talent pool and make recruitment more complicated.

Supporters of the proposal may argue that higher costs could discourage misuse and encourage employers to hire American workers. Opponents counter that legitimate international graduates often contribute to innovation and fill specialised roles. The eventual effect will depend on the final policy, how institutions respond and whether legal challenges alter its implementation.

Is the $70,000 Fee Already in Effect?

No. The $70,000 initial fee and the proposed $30,000 charge for subsequent recommendations are part of a proposed rule, not a fee that should be treated as already implemented.

The proposal has been published for public comment. The Department of Homeland Security must consider feedback before deciding whether to finalise the rule. If finalised, the proposal provides for the new requirements to take effect after a specified implementation period.

The rule could also face legal challenges from higher-education organisations, business groups or other affected parties. Questions about the government’s authority to impose such a large charge, the rationale for its amount and the potential consequences for universities and students may become important in any legal proceedings.

International students should therefore distinguish between the administration’s proposal and the rules currently governing their own immigration status. Students making education or employment decisions should consult their university’s international student office and check official US government guidance for updates.

The Bigger Picture

The proposal highlights a growing tension in US immigration policy: the government wants stronger controls over foreign workers, while American universities and businesses continue to depend on international students and skilled graduates. A steep increase in the cost of OPT participation could affect not only individual students but also university finances, recruitment decisions and the availability of specialised talent.

For India, the issue matters because US universities remain an important destination for students seeking advanced education and international work experience. If the proposed policy becomes final and institutions respond by limiting OPT participation, some students may reassess their plans or compare opportunities in other countries. The extent of any shift remains uncertain until the policy is finalised and its effects become clearer.

Looking Ahead

The immediate next step is the federal rulemaking process. The Department of Homeland Security will review public comments before deciding whether to adopt, revise or withdraw the proposal. Universities, international education organisations and employers are likely to scrutinise the cost implications and may seek changes or challenge the rule through legal channels.

For prospective Indian students, the practical approach is to avoid treating the proposal as a settled $70,000 personal payment requirement. Instead, students should monitor official announcements, ask universities how they would handle the proposed institutional fees and evaluate study-abroad plans with the possibility of changing work-authorization rules in mind. The final outcome will determine whether this proposal becomes a significant new barrier to post-study employment in the United States.