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Perplexity ChatGPT Claude Gemini

$70,000 to Work After Graduation: Inside DHS’s Proposed OPT Fee

Perplexity ChatGPT Claude Gemini
$70,000 to Work After Graduation: Inside DHS’s Proposed OPT Fee

On October 7, 2026, the Department of Homeland Security (DHS) released a proposed rule that would make U.S. schools pay $70,000 before recommending an international student for Optional Practical Training (OPT), and $30,000 for each later recommendation. The notice was scheduled for Federal Register publication on October 8, and Murthy Law Firm stresses that the fees are not in effect. Even so, the figure has alarmed campuses, employers and students. As always, our EB-1A consultants have dived into the nitty-gritty of this proposed law.

What the proposal says

OPT lets F-1 students work in jobs related to their studies. Business Standard reports that students are generally eligible for up to one year of OPT, with STEM graduates qualifying for two more. The program took its modern shape in a 1992 rule, was extended for STEM graduates in 2008, and stretched to 24 months in 2016.

Under the draft rule, the $70,000 fee would apply the first time a school recommends a student for any type of OPT, before or after graduation. A $30,000 fee would apply to every later recommendation, including the STEM extension. DHS offers a worked example: a student who does pre-completion OPT and later seeks post-completion OPT would cost the school $100,000 in total.

A designated school official could not enter the recommendation until the fee was paid, and USCIS could not grant work authorization without payment. Schools could seek a refund only if the student never receives a work permit, and after that the fee is final. The fees would apply only to recommendations dated on or after the effective date: 60 days after a final rule is published. DHS is also asking the public about a harsher option: charging the $70,000 again each time a student moves up a degree level.

Who are supposed to pay the prices

On paper, the school. Business Standard notes the proposal does not say students would pay directly, but the cost could still reach them if institutions pass it on. DHS openly expects that. It acknowledges that schools may shift the obligation to F-1 students, all students or employers.

Why DHS says it is needed

The department’s case rests on fraud and the labor market. It cites an investigation that identified more than 10,000 F-1 students working for highly suspect employers, including alleged “pay-to-stay” arrangements built around nonexistent worksites. It also points out that OPT participants grew from 160,627 in 2023 to 194,554 in 2024, and that 165,524 students were on STEM OPT, nearly double the number of H-1B visas allowed each year.

With sharp and biting rhetoric, DHS has described the program as a “pipeline for cheap foreign labour.” In the rule itself, it argues that the gates have “opened too widely.” DHS also warns that without the fees it may shut down OPT entirely.

The price tag

DHS’s own economic analysis is striking. It estimates annualized costs of $32 million to $8.2 billion, with a primary estimate of $4.1 billion. It puts annual transfers from schools to the federal government at $8.7 billion to $16.9 billion. The money would go to the Treasury rather than ICE. DHS also concedes that 56 percent of regulated institutions are small entities and expects a significant economic impact on a substantial number of them.

The pushback against the law

Education groups were blunt as the proposal surfaced. NAFSA chief Fanta Aw called the fee the latest development creating “deep uncertainty” for international students. A NAFSA survey found 54 percent of graduate students and postdocs would not have come without OPT, though it did not ask about fees. The Association of Public and Land-grant Universities doubted that colleges can afford the fee and called the proposal “deeply flawed.” Houston immigration lawyer Steven Brown told PBS NewsHour he sees it as a design to “kill the program without killing the program.” The context is also a rough one for recruiters. Fortune’s headline notes that new foreign enrollment has fallen 17 percent.

Legal doubts are also already surfacing. Doug Rand of the Talent Mobility Fund argues that DHS lacks the authority to impose a fee this large. Immigration Analytics adds that a charge with no stated link to processing costs, paid into the general Treasury, invites the argument that it is really a tax only Congress can levy. DHS answers that only about 20 percent of the 1.4 million F-1 students in higher education used OPT in 2024, so most do not come to the U.S. for work.

What happens next

India was the largest source of international students in 2024-25, with more than 363,000 enrolled, according to PTI. Indian students are therefore among the most exposed.

The comment deadline is reported inconsistently. Business Standard, citing PTI, says the public gets 60 days. The notice itself sets 30 days for comments on the rule and 60 days for comments on its information-collection requirements. Murthy Law Firm lists November 9, 2026 as the rule’s comment deadline. Business Standard adds that business and higher education groups could challenge a final rule in court, and that a separate rule limiting student stays to four years was blocked by a federal court in September.

For now, the takeaway remains shrouded in uncertainty, and it is not a confirmed bill yet. As Business Standard puts it, the immediate implication is greater uncertainty over the cost and availability of post-study work.

At GCEB1, our EB-1A experts continue to track the rule’s developments to the minutest details. Stay tuned to us to read our thoughts, analysis and insights into the U.S. immigration landscape. We wish you a safe and stress free immigration journey ahead.

Frequently Asked Questions

1. Is the $70,000 OPT fee in effect?

No. It is a proposed rule. It could take effect only after DHS reviews comments, publishes a final rule, and 60 days pass (Murthy Law Firm 2026).

2. Who pays the fee?

The school pays DHS. DHS acknowledges that schools may pass the cost to students, all students or employers (U.S. DHS 2026).

3. How much is each fee?

The first OPT recommendation of any kind costs $70,000, and each later one costs $30,000, including STEM extensions (U.S. DHS 2026).

4. Will students already on OPT be charged?

The fees would not apply to students already approved or recommended before the effective date. A later OPT request on or after that date would trigger the fees (U.S. DHS 2026).

5. Can a school get a refund?

Yes, but only if the student does not receive an employment authorization document. Refund decisions are discretionary and not appealable (U.S. DHS 2026).

6. Why does DHS want the fee?

It cites OPT fraud, the program’s rapid growth, and the protection of U.S. workers (U.S. DHS 2026).

7. How much money would it raise?

DHS estimates annual transfers of $8.7 billion to $16.9 billion, with a primary estimate of $12.8 billion (U.S. DHS 2026).

8. Could the rule be challenged in court?

Yes. Business Standard notes that education and business groups could sue, and critics question whether DHS has authority for a fee this size (Business Standard 2026; Within Nigeria 2026).

9. How can the public comment?

Submit comments under Docket No. ICEB-2026-0100 at regulations.gov, using the deadline in the Federal Register notice (U.S. DHS 2026).

Sources & further readings

 

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