DHS Proposes New OPT Fees: What Universities Need to Know

The Department of Homeland Security (DHS) has proposed new fees for the Optional Practical Training (OPT) program. These proposed charges would shift the financial responsibility from students to the educational institutions. The proposal, announced on October 7, 2026, is not yet in effect and is open for public comment until November 9, 2026. The collected fees would be deposited into the U.S. Treasury.

This proposal could significantly impact universities and colleges that host international students. The potential financial burden on these institutions is substantial, raising questions about the future of international student programs and the recruitment of global talent in the United States. The DHS states the aim is to improve job competition for U.S. citizens and address concerns about program fraud.

Proposed OPT Fee Structure

The DHS has outlined specific proposed fees for different types of OPT authorizations. These fees would be paid by schools, not directly by the students. The proposed amounts are considerably higher than any current government filing costs associated with the OPT program.

Initial Authorization Fees

For an initial OPT authorization, the proposed fee for schools is $70,000 per student. This fee covers the standard post-graduation work period allowed under the OPT program. This amount alone could represent a significant expense for institutions with a large international student population.

Additional Authorization and STEM Extension Fees

Schools would also face a proposed fee of $30,000 for any additional authorization. This includes the popular 24-month extension for students in Science, Technology, Engineering, and Mathematics (STEM) fields. This fee applies when a student seeks to extend their OPT period beyond the initial authorization.

Combined Authorization Fees

If a student requires both an initial authorization and an additional period, such as the STEM extension, the combined proposed fee for the school would be $100,000. This highlights the potential for substantial costs for institutions supporting students through the full duration of OPT eligibility.

Potential Financial Impact on Educational Institutions

The financial implications of these proposed fees for schools could be immense. Institutions with a large number of international students could face millions of dollars in new costs. For example, a school with 100 new OPT participants could be responsible for $7 million in initial authorization fees alone. If those same 100 students also pursued an additional authorization, the total proposed fees could reach $10 million.

These figures represent potential exposure and not immediate charges, as the proposal requires a final rule to take effect. However, the prospect of such significant expenses could influence institutional budgets, recruitment strategies, and potentially lead to increased tuition costs for all students. The added financial pressure might also cause some institutions to reconsider their international student recruitment efforts.

Broader Consequences for International Students and Employers

While the proposed fees are directed at educational institutions, the effects could ripple outward. Schools might pass on some of these costs to students, making the pursuit of work experience after graduation more expensive. This could make it harder for graduates to gain essential practical experience before seeking long-term employment or H-1B sponsorship.

Employers who rely on international graduates for their skills, particularly in STEM fields, could also feel the impact. If schools reduce participation in OPT due to the fees, it could limit the talent pool available to businesses. This could hinder innovation and economic growth, especially in sectors facing labor shortages. The DHS’s stated goal of making it easier for U.S. citizens to compete for jobs might be achieved, but potentially at the cost of other economic benefits.

DHS Rationale and Criticisms

The Department of Homeland Security has stated that the OPT program is vulnerable to fraud and abuse and has characterized it as a “pipeline for cheap foreign labor.” A DHS spokesperson described it as a “back door” into the U.S. workforce and suggested that the program should require foreign students to “justify their worth to employers.” This perspective suggests a desire to tighten requirements and ensure that foreign workers are demonstrably valuable to U.S. companies.

Conversely, organizations like NAFSA: Association of International Educators argue that the OPT program is essential for international students to gain practical experience and for employers to address critical labor needs, especially in STEM fields. Fanta Aw, CEO of NAFSA, has stated that driving away international talent would harm American innovation, economic growth, and global leadership. This highlights a fundamental disagreement on the value and purpose of the OPT program.

Current Status and Public Comment Period

It is important to reiterate that this proposal is not currently in effect. The DHS is actively seeking public feedback on the proposed OPT fees. The comment period opened on October 8, 2026, and will close on November 9, 2026. All interested parties are encouraged to submit their comments through the Federal Register notice.

After reviewing the public submissions, the DHS will decide whether to finalize, revise, or withdraw the proposal. A final rule must be published before any new charges can be implemented. The Student and Exchange Visitor Program (SEVP) plans to share updates through various official channels, including SEVIS Broadcast Messages and the Study in the States website.

Frequently Asked Questions