On October 7, the Department of Homeland Security released a Notice of Proposed Rulemaking (NPRM) that would impose new fees on colleges and universities whose international students participate in Optional Practical Training (OPT). Under the proposal, schools would pay $70,000 for each F-1 student they recommend for OPT for the first time and $30,000 for each subsequent OPT recommendation for that student, including the 24-month STEM OPT extension. The department acknowledges that schools could pass some or all of the financial obligation onto students or employers.
Background
OPT allows F-1 nonimmigrant students to receive practical training directly related to their major area of study. With limited exceptions, F-1 students may not otherwise work in the U.S. OPT is not a requirement of a student’s program of study, and students can participate either before completing their program (pre-completion OPT) or after (post-completion OPT).
F-1 students who have studied full time for at least one academic year at a Student and Exchange Visitor Program-certified institution may qualify for up to 12 months of OPT. Students with qualifying STEM degrees can then apply for a 24-month STEM OPT extension. To qualify, the degree must fall within a field on the DHS STEM Designated Degree Program List. Before a student can begin any form of OPT, a Designated School Official (DSO) at the student’s institution must recommend them.
New Fees
The proposed rule would require SEVP-certified schools to pay a $70,000 fee the first time they recommend an F-1 student for any type of OPT. Schools would then pay $30,000 for any later OPT recommendation for a student who has already participated in OPT and for whom the school has paid the initial fee. For a STEM student who completes both the initial OPT period and the 24-month extension, the institution’s total cost would reach $100,000. The $30,000 fee also applies outside of STEM. A student who participates in pre-completion OPT and later in post-completion OPT would trigger both fees.
The fees would attach to the school’s recommendation rather than to a specific employer. While schools would be responsible for paying the fees to the Department of Homeland Security, the preamble states that schools “may pass the financial obligation of this proposed fee onto F-1 nonimmigrant students, all students, or employers.” The proposal also includes a refund process for institutions whose students do not ultimately receive an OPT employment authorization document. The DHS states that it “intends for schools to pay the applicable fees for eligible students who will engage in a form of OPT, regardless of the manner in which the foreign student obtained F-1 status — whether admitted in F-1 status or through a change of status (COS) within the United States — and irrespective of how the F-1 student obtained an extension of stay when seeking to engage in a form of OPT.”
The DHS argues the fees would combat fraud and abuse in OPT, protect American workers, and push institutions to exercise greater oversight when recommending students. The NPRM warns that, without the fees, the DHS “cannot administer OPT consistent with its focus on protecting American workers and may shut down the program entirely.”
The Federal Register will officially publish the NPRM on October 8, 2026, opening a 30-day comment period. CUPA-HR is analyzing the rule’s impact and will keep members apprised of further developments.