The United States government has proposed making universities pay $70,000 for each international student who wants to work in the country after graduating. It is the latest in a series of restrictions on international students that economists warn could cost the US economy billions of dollars and weaken its lead in science and innovation.
Under a proposed rule published by the Department of Homeland Security (DHS) on 8 October 2026, universities would pay the fee before recommending a student for Optional Practical Training (OPT), plus $30,000 for each extension. That adds up to as much as $100,000 per student. Students currently pay about $500 to apply, according to TIME. Public comments are open until 9 November 2026.
What OPT is
OPT allows international students on F-1 visas to work in the US for up to 12 months after completing a degree. Graduates in science, technology, engineering and mathematics (STEM) can extend this by up to 24 months. For many students, it is the main route from a US degree into a US job, and often to a longer-term work visa.
About 294,000 international students took part in OPT in 2024–25, more than double the number a decade earlier, Higher Ed Dive reported. Nearly 1.2 million international students were in the US that year.
Why DHS says the fee is needed
DHS says the fee would curb fraud and abuse in the programme and protect American workers. It says it has found more than 10,000 students working for what it called “highly suspect employers”, and that OPT has been used to get around the H-1B skilled-worker visa system. A DHS spokesperson told TIME that OPT “was never meant to be a back door into the American workforce”.
The rule does not say how universities should raise the money. DHS acknowledges that they may pass the cost on to international students, to all students, or to employers.
Universities push back
Higher education groups have strongly opposed the plan. The American Council on Education (ACE) says it will urge DHS to withdraw the rule. “It’s highly unlikely that our institutions would pay the fee straight out,” said Sarah Spreitzer, ACE’s vice president for government relations, suggesting the cost would reach students through tuition and fees.
Fanta Aw, chief executive of NAFSA: Association of International Educators, said the proposal “creates deep uncertainty for international students”. In a survey of 828 US institutions in autumn 2025, 92% of college leaders said international students would be likely to choose other countries if OPT were not available.
The economic cost
Even before the fee was proposed, the US expected a sharp fall in international students. An analysis by NAFSA and JB International, published in August, projected up to 111,000 fewer international students this autumn. That could cost the US economy up to $3.4 billion and nearly 40,000 jobs, with falling graduate enrolment the biggest factor.
NAFSA linked the decline to a 21% drop in international doctoral applications, visa appointment backlogs, and a travel ban covering 39 countries that took effect in December 2025.
Economists interviewed by PBS NewsHour warned that the damage could last far longer than one academic year:
- Michael Clemens of Johns Hopkins University described global talent as “a taproot of innovation” in the US, and expects fewer inventions and new businesses in the years ahead.
- Tara Watson of the Brookings Institution said the effects on the workforce may show up in 10 or 20 years, as the talent pipeline shrinks.
- Devashish Mitra of Syracuse University pointed out that international students and workers create local jobs through their spending.
- Ted Mitchell, president of ACE, noted that most international students pay full tuition, which helps support American students, and called them “the best kind of soft power”.
Part of a wider crackdown
The OPT fee follows several other measures affecting international students and graduates:
- H-1B fee: a separate proposed rule from August would charge employers more than $100,000 to file for an H-1B skilled-worker visa.
- Fixed visa periods: a July rule to replace “duration of status” with fixed admission periods was blocked by a federal judge on 14 September. The administration has appealed.
- Visa revocations and vetting: the State Department says it revoked about 8,000 student visas earlier this year, though many were later restored after court challenges. Visa applicants’ social media accounts are now screened.
Several of these policies have been halted or delayed by the courts.
Other countries see an opening
Competitors are moving to attract students and researchers who may now look beyond the US. PBS NewsHour notes that China launched a visa in 2025 to recruit young STEM professionals, Canada has hired researchers from US universities, and the European Union has set up its “Choose Europe for Science” initiative.
What happens next
The fee is a proposal, not a final rule. DHS will review public comments, which can be submitted on Regulations.gov (docket ICEB-2026-0100) until 9 November. If the rule is finalised, the fee would take effect 60 days after publication. Legal challenges are widely expected.
What students should know
Nothing has changed yet. OPT works as before until a final rule is published and takes effect.
If you are applying to US universities, ask each one how it would handle the fee if it is introduced, and whether the cost would be passed on to students. Plans to work in the US after graduation are a major part of the value of a US degree for many students.
If you are already studying in the US, speak to your university’s Designated School Official (DSO) and follow official updates on DHS’s Study in the States website.
This article is general information, not immigration advice.
Sources: Department of Homeland Security, “Optional Practical Training Fees”, Federal Register, 8 October 2026; PBS NewsHour, 20 October 2026; NAFSA and JB International, Fall 2026 outlook, 11 August 2026; American Council on Education, 8 October 2026; Higher Ed Dive, 7 October 2026; TIME, 8 October 2026. Checked on 31 October 2026.