The Trump administration has proposed a $70,000 fee for international students to participate in the Optional Practical Training (OPT) program, a temporary employment authorization that allows students to work in fields related to their studies. The proposal, published in the Federal Register and open for public comment until November 9, aims to curb alleged fraud and misuse of the OPT program, which the Department of Homeland Security (DHS) described as having "ballooned into an uncontrolled guest worker pipeline."

Under the current system, students pay approximately $500 for an OPT application. The program generally permits one year of work authorization during or after study, with extensions available for those in science, technology, engineering, and mathematics (STEM) fields. The proposed fee structure would require schools to pay $70,000 for a student's initial participation and an additional $30,000 for each subsequent program enrollment. DHS acknowledged that schools might pass these costs to students or employers. All collected fees would be directed to the U.S. Treasury.

A DHS spokesperson stated that OPT was not intended as a "back door into the American workforce, a subsidy for cheap labor, or a prize for those who game the system," emphasizing that American workers should not have to compete with a program exploited for cheap foreign labor.

Rationale for the Fee Proposal

DHS cited an increase in alleged fraudulent activities and suspect employers within the OPT program. In May, the department reported identifying over 10,000 foreign students purportedly working for highly questionable employers, with investigations revealing empty buildings and non-existent operations at addresses where numerous students claimed employment. Allegations included "phantom employees" and suspicious financial transactions.

The department also noted the significant growth in OPT authorizations, with 194,554 students receiving employment authorization documents in 2024, an increase from 160,627 in 2023. DHS argued that without the proposed fees, it cannot adequately manage the program to prevent fraud and might be forced to discontinue it. The fee is intended to ensure that schools, students, and employers use OPT for its intended purpose, rather than as a way to circumvent the H-1B visa program, which allows U.S. employers to hire foreign workers in specialized occupations.

DHS believes the fee will incentivize schools to increase oversight and selectivity when recommending students for OPT, thereby reducing fraud.

Criticism and Legal Challenges

Critics argue that the proposed fee is illegal and detrimental to U.S. competitiveness. Similar to past efforts to restrict foreign student enrollment, this proposal is anticipated to face legal opposition. Educational organizations have previously filed lawsuits challenging changes to related programs, and a $100,000 fee for H-1B visas has been blocked by courts.

Advocacy groups have voiced concerns that the fee would price the U.S. out of the global market for top talent, particularly in STEM fields. A recent survey by the Institute for Progress indicated that a significant majority of international students would be less likely to remain in the U.S. if the proposed fees were implemented, with only 15% of eligible STEM students expressing intent to stay. This contrasts with DHS's assumption of no change in participation among STEM graduates.

Furthermore, critics warn that reduced international enrollment could negatively impact institutional budgets, increase tuition for American students, and diminish the overall educational experience for all students.