Universities and Coalition Fight Proposed OPT Fees

Universities and Coalition Oppose Proposed F-1 OPT Fees

The Department of Homeland Security (DHS) has proposed new fees for the Optional Practical Training (OPT) program that have drawn significant opposition from universities and a multistate coalition. These proposed fees, amounting to $70,000 for an initial OPT recommendation and $30,000 for subsequent recommendations, including STEM OPT extensions, would place the payment obligation on colleges and universities. This proposal has raised concerns about its potential impact on international students, educational institutions, and the broader economy.

The University of Michigan, along with a coalition of states and educational organizations, has formally opposed these proposed fees. They argue that the DHS lacks the authority to impose such charges and that they amount to an unauthorized tax. The coalition estimates that if these fees were implemented at current participation levels, institutions could face annual costs of $12.9 billion. This figure is based on over 294,000 students participating in OPT nationwide during the 2024-2025 academic year.

Understanding the Proposed OPT Fee Structure

The proposed rule outlines specific fees tied to the recommendation process for OPT. Institutions would be required to pay a substantial amount to DHS before they can recommend a student for practical training. This payment structure is a key point of contention, as it places the financial burden directly on the schools.

Here’s a breakdown of the proposed fees and how they relate to OPT:

• Initial OPT Recommendation: Institutions would need to pay $70,000 to recommend a student for their initial OPT period.
• Subsequent Recommendation: An additional $30,000 would be required for any later recommendations, such as those for STEM OPT extensions.
• General OPT: This program typically allows eligible F-1 students to gain up to 12 months of work experience related to their field of study after graduation.
• STEM OPT Extension: Graduates in qualifying Science, Technology, Engineering, and Mathematics fields may be eligible for an additional 24-month extension of their OPT period.

While institutions could attempt to seek reimbursement from students or employers, the primary responsibility for remitting these payments to DHS would fall on the colleges and universities. This arrangement forces schools to weigh the cost of recommending students against the potential benefits of the OPT program.

Arguments Against the Proposed Fees

Opponents of the proposed fees argue that the DHS has not provided sufficient justification for the amounts or demonstrated how they would effectively address fraud and abuse. The DHS has stated that the proposal aims to curb misuse of the OPT program, particularly as a way to bypass H-1B visa requirements, caps, and prevailing wage rules. However, critics contend that these high fees are not a necessary or appropriate solution.

The coalition, which includes state attorneys general, argues that the proposed charges are unlawful and exceed the department’s authority under the Immigration and Nationality Act. They also point to the short 30-day public comment period as inadequate for such a significant policy change. The Presidents’ Alliance on Higher Education and Immigration, representing over 580 college and university presidents, has also voiced strong opposition. They believe the fees could make practical training inaccessible for many students and institutions, effectively undermining the OPT program.

Potential Consequences of the Proposed Rule

If the proposed OPT fees are implemented as planned, the consequences could be far-reaching. Universities might reconsider recommending students for OPT, which could limit valuable work experience opportunities for international graduates. This could also make it harder for U.S. employers to hire skilled talent educated in the United States. Furthermore, such fees could deter international students from choosing to study in the U.S. altogether, impacting the diversity and global competitiveness of higher education.

One student, who wished to remain anonymous due to concerns about their visa status, expressed anxiety about future work opportunities. They noted that visa uncertainty is often tied to political uncertainty, and the proposed fees add another layer of concern about their ability to gain practical experience in their chosen field.

Related Regulatory Changes

It is important to note that this proposed fee rule is separate from another DHS proposal concerning the admission period for certain nonimmigrants. That separate rule, published in July 2026, would move away from duration-of-status admissions to fixed periods of authorized stay. While it includes transition provisions for OPT applicants, it does not directly address the proposed OPT fees. The status of other immigration-related rules, such as a previously delayed four-year cap rule, remains unclear.

For now, the proposed OPT fees are still under consideration. Educational institutions and students are awaiting a decision from DHS on whether the proposal will be withdrawn, revised, or finalized. No implementation date has been set for the fee proposal, and there are no steps for students or employers to take at this time regarding these potential fees.

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