Trump Administration Proposes $70K Fee for International Students to Work in U.S.

The proposal, published Thursday in the Federal Register and open for comment until Nov. 9, aims to crack down on OPT—a temporary employment authorization that lets students work in jobs related to their field of study and that DHS has claimed has “ballooned into an uncontrolled guest worker pipeline” and become a “magnet for fraud.” Under the current system, students pay about $500 to apply and are generally permitted to work in the U.S. for up to a year during or after their study, while those in the science, technology, engineering, and mathematics (STEM) fields may get work period extensions.Under the proposal, schools would have to pay $70,000 for a student’s initial participation—and another $30,000 for each additional program participation—though DHS said it recognizes schools “may pass the financial obligation of this proposed fee” to students or employers. Collected fees would be deposited in the U.S. Treasury.A DHS spokesperson said in the announcement of the proposed fee that OPT “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,” and that “American workers should not have to compete against a program that has been turned into a pipeline for cheap foreign labor.” While the Administration champions policies discouraging foreign student enrollment as a means to benefit Americans, experts have said that such policies could hamper U.S. competitiveness in the long run.Why DHS is cracking down on OPTSince 1947, federal regulations have allowed foreign students to work in cases where employment for practical training is required or recommended by their schools.But DHS in May alleged it found more than 10,000 foreign students “who claim to be working for highly suspect employers,” and, upon further OPT-linked investigations across multiple states, said it found “empty buildings and locked doors at addresses where hundreds of foreign students are allegedly employed.” Investigators also alleged fraudulent activities, such as “phantom employees,” and suspicious financial transactions.In its proposal for the new fee, DHS claimed that the program’s growth in the last few years “has exponentially outpaced the number of companies” which it could review and investigate. It said that 194,554 students were granted employment authorization documents in 2024, compared to 160,627 in 2023. The department reasoned that “without the fees proposed in this rule, it cannot operate OPT consistent with its focus on preventing fraud and may shut down the program entirely.”It also said the fee was “necessary to ensure that schools, students, and employers participate in OPT for its intended purpose instead of a means to circumvent the H-1B visa program,” which refers to the work visa that allows American employers to hire foreign workers in specialty occupations such as technology, engineering, education, healthcare, and finance. OPT has often served as a bridge for students seeking work under H-1B visas, which the Administration has similarly targeted with higher fees.DHS said it believes that the proposed fee would put the onus on schools “to exercise greater oversight and selectivity” when recommending students for OPT, and it would thus reduce fraud.Critics call proposal illegal—and anti-AmericanThe proposal, however, like previous attempts to curb foreign enrollment, is expected to face legal challenges. On Oct. 5, educational organizations took the Administration to court following its efforts to limit a similar program, Curricular Practical Training. A $100,000 H-1B visa fee has also been blocked in courts.“Don’t Panic: DHS has no authority to slap a $70k fee on international students,” Doug Rand, director of the Talent Mobility Fund, an advocacy group for attracting foreign STEM talent, posted on LinkedIn. “Let’s not overreact—this proposed rule isn’t going to fare well in the courts, just as the $100k H-1B fee and other restrictionist policies have been struck down.”Todd Schulte, president of the immigration reform advocacy group FWD.us, said that if the proposal passes, the U.S. “is intentionally pricing itself out of the global market for top talent, especially in STEM fields.”Results of a survey by the D.C.-based think tank Institute for Progress released Tuesday found that most international students plan to use OPT, but 80% fewer students said “they would likely try to stay” if the proposed fees were implemented. For STEM students eligible for OPT, the survey found that only 15% would likely try to stay. “DHS assumes that for STEM grads, there will be ZERO change in participation,” the think tank’s director for immigration policy, Jeremy Neufeld, posted on X.Zuzana C. Wootson, deputy director of federal policy at nonprofit organization Presidents’ Alliance on Higher Education and Immigration, said in a statement that such exorbitant fees would push prospective students to competitor countries. But she also warned that the consequences “would extend well beyond international students. Declining international enrollment would strain institutional budgets, increase tuition pressure on American students, and diminish the educational experience for everyone.”