Trump's Proposed $100,000 OPT Fee: What It Means for Indian Students in America
A proposal is reportedly under consideration by the Trump administration to impose a $100,000 fee on international students seeking to work in the United States after graduation. This news has rattled universities and employers alike, who warn it could upend the financial logic of an American education for hundreds of thousands of foreign students.
The plan, first reported by the Wall Street Journal and later confirmed by Bloomberg, is not a full-blown policy yet. Officials at the Department of Homeland Security are reportedly discussing attaching the fee to Optional Practical Training (OPT), the program that lets international graduates work in the US for up to one year after finishing their degree (or up to three years for STEM graduates). It remains unclear whether the fee, if adopted, would fall on students, employers or universities.
A DHS spokesperson, responding to the report, did not deny the proposal was under discussion. “No policies should be considered final until formally announced. At DHS we are always having conversations about how to use all tools in our arsenal to protect the integrity of our legal immigration system,” the spokesperson said.
The idea surfaced just five days after the administration suffered a legal setback on a nearly identical measure. On July 24, the First Circuit Court of Appeals in Boston declined to revive the White House's $100,000 H-1B visa fee, leaving intact a June 8 ruling by Judge Leo Sorokin that the charge amounted to an unlawful tax Congress had never authorized.
The OPT proposal also follows another significant policy shift finalized weeks earlier: a rule limiting most international students to fixed four-year visas which replaced the decades-old “duration of status” system that had allowed students to remain in the US for as long as they stayed enrolled in an eligible program. Taken together, the two moves point to a broader tightening of legal pathways for foreign students.
As always, our EB-1A consultants have dissected and discussed this news in great detail in what follows. Reading it will provide a comprehensive idea about the challenges the OPT program is currently facing.
Why OPT matters so much for international students
OPT is widely regarded as one of the central reasons international students choose to study in the US at all. It allows F-1 visa holders to work in their field after graduation while still technically on a student visa. Under the program, STEM graduates can extend that authorization to 36 months. Moreover, they can use the time to gain professional experience and, often, to transition to an employer-sponsored H-1B visa.
According to the Wall Street Journal, roughly 419,000 foreign graduates were working under OPT in 2024, which would make it one of the largest post-study work channels in the country. The Institute of International Education has separately reported that nearly 300,000 international students were on OPT as of last fall. The number is about a quarter of the entire foreign student population in the US, according to Bloomberg reporting.
For Indian students, who make up the largest international student population in the country, OPT is frequently the deciding factor that justifies the steep cost of American tuition. Annual costs at private US universities can exceed $100,000, and even public universities often charge international students tens of thousands of dollars a year. Many families weigh this expense against the prospect of eventually working, and earning, in the US.
Administration officials have defended targeting the program, arguing it has become a vector for visa fraud and unlawful overstays, according to Bloomberg.
The proposal echoes the administration's earlier push to attach an identical $100,000 price tag to H-1B visas, the primary channel through which US companies recruit skilled foreign workers. That fee was struck down by a federal judge. The ruling was subsequently upheld on appeal, and the administration is contesting it further.
Why immigration experts are worried about the proposal
Higher education groups warn that a $100,000 OPT fee would make American universities markedly less competitive against countries such as Canada, the UK and Australia. The Journal reported that universities fear the move could depress international enrollment while technology companies and Wall Street firms worry it would choke off a key talent pipeline.
In an analysis for the Brookings Institution, immigration lawyer Taylor Joseph of Green & Spiegel and Ezra Brown of Cornell Law School argued that replacing “duration of status” with fixed visa terms injects fresh uncertainty for both students and employers, and that international graduates play an outsized role in the US innovation economy.
The pair noted that F-1 visa holders (roughly 1.2 million people, about 6% of the US student population) indirectly benefit domestic students too, since each additional international student enrolling at a public university tends to draw in two additional in-state students. If prospective students choose to study elsewhere instead, they wrote, “they are very likely to end up staying there, depriving the United States of their economic benefit.”
They also cautioned that the added cost and uncertainty could deepen a decline already underway. US international student applications have reportedly fallen 20% amid what they described as a “heightened immigration enforcement environment.”
Fanta Aw, CEO of NAFSA: Association of International Educators, called the broader regulatory push “a misguided and unnecessary policy shift that injects uncertainty, bureaucracy, and fear into a system that has long worked effectively,” and criticized federal intervention in students' academic decisions, such as changing majors or transferring schools.
The American Immigration Lawyers Association was similarly blunt, arguing on social media that the rule “duplicates processes already managed through SEVIS” and forms part of a wider effort to dismantle the legal immigration system.
The legal question mark about this proposal
Immigration attorneys say any OPT fee introduced through executive action would likely face the same kind of legal challenge that felled the H-1B fee. “The inconsistencies in these rulings, and the appeals status of these cases, leave the ultimate fate of the fee still very much in limbo,” said Melissa Calhoon Jones, counsel at Tydings Law.
Law firm Nixon Peabody has pointed out that employers already lean heavily on OPT for long-term workforce planning and that recent regulatory shifts are forcing companies to rethink how they manage international hires. “Schools will need to consider building new compliance workflows to track I-94 expiration dates, advise students on timely EOS filing... and account for the immigration consequences of academic probation or suspension,” the firm noted. The remark also added that employers will face new pressure to coordinate OPT and STEM OPT timing with H-1B sponsorship earlier in a graduate's employment lifecycle.
What happens next
For the time being, the fee remains a proposal under internal discussion instead of already becoming a published rule, and DHS has stressed nothing is final until formally announced. But taken alongside the four-year visa cap and the contested H-1B fee, it adds to a pattern of measures the administration is adopting towards the overall legal immigration system.
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It is a proposal reportedly under discussion at the Department of Homeland Security to attach a $100,000 charge to Optional Practical Training (OPT), the program that lets international graduates work in the US after finishing their degree. It has not been formally announced or implemented. This has not been decided. Reports indicate officials have not determined whether the cost would fall on students, their employers, or the universities that host them. OPT allows F-1 international students to work in the US in a job related to their field of study for up to 12 months after graduation. Graduates in STEM fields can extend this to a total of up to 36 months through STEM OPT. Roughly 419,000 foreign graduates were working under OPT in 2024, according to the Wall Street Journal. Separately, the Institute of International Education reported nearly 300,000 international students were on OPT as of last fall, about a quarter of all international students in the US. Indian nationals make up the largest international student population in the US, and OPT is often the key reason they choose American universities over cheaper degrees at home or competing destinations, since it offers a path to US work experience and, eventually, an H-1B visa. A $100,000 fee could make that path financially out of reach for many. Yes. The administration previously imposed an identical $100,000 fee on H-1B visa applications, but a federal judge ruled it an unlawful tax, and a federal appeals court declined to revive it in July 2026. The OPT proposal is seen by some legal experts as testing a different regulatory approach to achieve a similar outcome. Immigration lawyers believe it likely could be, especially if implemented through executive action rather than legislation. However, since it would attach to a regulatory work-authorization program rather than a visa category, some suggest it may be structured to test a different legal theory than the one that failed for H-1B. Higher education groups warn the fee would make US universities less competitive against Canada, the UK and Australia, and could cut into international enrollment and tuition revenue. Technology and financial firms are concerned it would disrupt their pipeline of skilled graduate hires. No. As of now, it is only a proposal under internal discussion at DHS. A department spokesperson said no policy should be considered final until it is formally announced.Frequently Asked Questions
1. What exactly is the Trump administration's proposed $100,000 fee?
2. Who would have to pay the fee: students, employers, or universities?
3. What is OPT, and who is eligible for it?
4. How many people currently use OPT?
5. How would this affect Indian students specifically?
6. Is this connected to the $100,000 H-1B visa fee?
7. Could the OPT fee be challenged in court, like the H-1B fee was?
8. How are universities and employers reacting?
9. Is this fee currently in effect?
Sources & Further Reading
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