DHS Proposes US$70,000 OPT Fee; Draws Legal Concerns
Table of Content
Key Highlights
- The US Department of Homeland Security (DHS) has proposed a US$70,000 OPT fee for a student's first recommendation and US$30,000 for subsequent ones, which will be paid by schools.
- If finalised, the change in fees would take effect 60 days after publication. DHS estimates about US$12.4 billion generated annually from the proposed fees.
- Stakeholders have raised concerns regarding the financial burden and potential legal challenges that the DHS proposal will face.
The US DHS presented a new fee structure for Optional Practical Training (OPT). The OPT programme allows eligible international students who hold an F1 visa to gain practical work experience related to their field of study.
The DHS published a proposed rule in the Federal Register on 8th October 2026. The proposal introduces a US$70,000 fee for a student’s first OPT recommendation and US$30,000 for each subsequent recommendation. While schools and institutions pay the fee instead of students personally as of now, the costs could shift to the students. The proposal remains a draft and not a final rule.
Proposed Fee Shifts Cost to Institutions
Institutions that have Student and Exchange Visitor Program (SEVP) certification would pay US$70,000 before recommending an F1 student for OPT for the first time under this proposal. Each subsequent recommendation would carry a fee of US$30,000, including recommendations for a STEM (Science, Technology, Engineering and Mathematics) OPT extension. The proposed OPT fee would be linked to the school’s recommendation rather than a particular employer.
The proposal has outlined varying financial impacts based on the student's academic path. For instance:
- Students using post-completion OPT for the first time would incur the initial US$70,000 fee.
- Those receiving pre-completion OPT and later seeking post-completion OPT would incur charges totaling US$100,000.
- However, a student pursuing pre-completion OPT, post-completion OPT and a STEM OPT extension could even face total fees of up to US$130,000.
The school must pay DHS before its designated school official (DSO) enters the recommendation in the Student and Exchange Visitor Information System (SEVIS). According to the proposal, schools are required to make the payment, although DHS acknowledges the fact that institutions may pass some or all of the costs to students or employers.
DHS Fee Proposal Aims to Curb Misuse
DHS has stated that the proposed fees are intended to reduce the frequency of fraud and misuse of OPT, strengthen immigration-system integrity, protect US workers and address government resources spent investigating suspected violations. The department also addressed concerns that included fraudulent employment arrangements, shell employers and workplaces that do not comply with the programme requirements.
According to DHS data cited in the proposal, 194,554 students participated in OPT and 95,384 in STEM OPT in 2024. The department identified 2,478 schools with students in the programme and noted that more than 56% of SEVP-certified institutions may qualify as small entities. DHS has also said the US$70,000 figure was set partly to align OPT costs with the administration’s separate H-1B fee policy, so OPT could not be used as a cheaper alternative.
Refunds and Implementation Remain Unclear
The proposal has allowed schools to request refunds on a case-by-case basis, provided the student has not received the relevant Employment Authorisation Document (EAD). Although once the EAD has been issued by the agency, the fee will not be refundable under any circumstances.
If finalised, the OPT fee change would take effect 60 days after publication of the final rule. It would apply to qualifying OPT recommendations dated on or after that effective date. The proposed fees are not automatically applicable simply because the agency published the proposal.
DHS estimated that the proposed fees could generate approximately US$12.4 billion annually, with estimates ranging from US$8.4 billion to US$16.5 billion. The actual financial impact would depend partly on how much of the fee educational institutions absorb and how many costs they pass on to others.
Public Comments and Stakeholders’ Concerns
The proposal has invited public comments through the federal rule-making portal under docket number ICEB-2026-0100. The comment deadline is 9th November 2026. Following the review of submissions, DHS may revise the proposal before issuing a final rule.
Stakeholders have raised concerns about the financial burden and potential legal challenges. Many employers face uncertainties regarding budget allocations and potential cap gap complexities if they plan to sponsor these students later. In media reports, Houston-based immigration attorney Steven Brown has questioned whether many schools would pay the proposed amount. Former US Citizenship and Immigration Services adviser Doug Rand has predicted possible court challenges and argued that DHS lacks the authority to impose a fee this size.
However, such stakeholder views are not established legal outcomes. The proposed OPT fee structure is subject to change until DHS issues a final rule. Students, educational institutions and employers must distinguish the published proposal from any future final requirements.