DHS Proposes Massive OPT Fees for F-1 Student Programs

Summary

The U.S. Department of Homeland Security (DHS) has proposed unprecedented fees for schools that recommend F-1 students for Optional Practical Training (OPT). The proposal is not yet effective, and current OPT procedures remain unchanged unless and until DHS issues a final rule. Under the proposal, SEVP-certified schools would pay $70,000 for a student’s first OPT recommendation of any type and $30,000 for each subsequent recommendation, including a STEM OPT extension.

If finalized, the proposal would significantly affect U.S. universities, F-1 students, employers that hire international graduates, and the broader U.S. higher education and talent ecosystem.

The proposal would require schools to pay:

• $70,000 for a student’s first OPT recommendation of any type, including pre-completion or post-completion OPT
• $30,000 for each subsequent recommendation, including a STEM OPT extension

The fee would have to be paid before the DSO enters the recommendation in SEVIS; otherwise, USCIS could not grant OPT employment authorization. Limited refunds would apply when an employment authorization document is not issued. A final rule would take effect 60 days after publication and apply to recommendations issued on or after that date. Students already approved for—or recommended for—their current OPT period before the effective date would not trigger a fee for that period, although a later recommendation could trigger the applicable fee.

DHS Rationale

DHS says the fees would deter fraud and misuse, strengthen school accountability, and protect U.S. workers. The agency cites suspected shell-company arrangements and argues that higher costs would encourage closer review of OPT recommendations.

Potential Impact on Students and Employers

Although schools would owe the fees, DHS acknowledges they could pass the costs to students, employers, or the broader student body. The proposal could reduce OPT availability, increase university compliance and recruiting costs, and disrupt employers’ access to U.S.-educated international talent.

DHS Estimates Significant Economic Effects

DHS estimates approximately $12.8 billion in annual transfer payments under its primary estimate, with significant effects on schools—including many small institutions—and reduced OPT participation.

Takeaways

The rule remains proposed, but the fee levels could materially change how schools, students, and employers use OPT. Employers that rely on international graduates should monitor the rulemaking and assess potential effects on recruiting and workforce planning.

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