The Department of Homeland Security (DHS) on June 27, 2024 unveiled a new rule that would require universities and colleges with SEVP certification to pay a $70,000 fee for each first‑time F‑1 student who receives a recommendation for Optional Practical Training (OPT). The fee doubles to $30,000 for every subsequent OPT authorization, including STEM extensions.
The move follows mounting evidence that the OPT framework has been exploited by schools, designated school officials, employers and students in schemes that include fraudulent work sites and ‘pay‑to‑stay’ visa arrangements. DHS said the fee would act as a financial lever to compel SEVP‑certified institutions to exercise tighter oversight before they submit OPT recommendations to the Student and Exchange Visitor Information System (SEVIS).
The proposal replaces an earlier $100,000 fee that had cleared White House review, but the new structure separates the $70,000 and $30,000 components and clarifies that the entire amount is paid by the schools, not the students, before the U.S. Citizenship and Immigration Services (USCIS) issues employment authorization.
Labor and mobility policy manager Sam Peak of the Manhattan Institute warned that the rule would "decimate our STEM talent ecosystem," arguing that it would curtail the flow of foreign students who drive innovation in high‑tech sectors. Daniel Di Martino, another Manhattan Institute researcher, added that the fee would burden taxpayers by stifling the very talent that fuels U.S. competitiveness.
DHS spokesperson, speaking to Press, underscored that "Optional Practical Training was never meant to be a back‑door into the American workforce, a subsidy for cheap labor, or a prize for those who game the system." The agency said the fee is designed to compel schools to justify a student’s value to employers before granting OPT.
The rule will be published in the Federal Register on October 8, 2026, and DHS will open a 30‑day public comment period. If adopted, the fee will be deposited into the U.S. Treasury and could shift the burden of compliance from students to institutions, potentially reshaping the landscape of international graduate education.