The Donald Trump administration has proposed imposing a $70,000 fee on US universities for each international student they recommend for employment under the Optional Practical Training (OPT) programme, a move that could significantly affect Indian students seeking work experience in the United States after completing their education.
The proposal, announced by the US Department of Homeland Security (DHS) on October 7, is part of the administration’s wider efforts to tighten immigration rules and curb what it describes as misuse of student visa and employment programmes. Under the proposed changes, universities would have to pay $70,000 for a student’s initial OPT period and an additional $30,000 for any subsequent period, including an extension for eligible graduates.
The proposed charges represent a sharp increase from the existing system, under which international students generally pay an application fee of around $500 for work authorisation, while universities do not pay a comparable fee for recommending students to participate in the programme. The financial burden could ultimately be passed on to students or prospective employers, potentially making post-study employment considerably more expensive.
India is likely to be among the countries most affected by the proposed changes, given the large number of Indian students pursuing higher education in the US. More than 350,000 Indian students are currently studying in the country, and many depend on opportunities to gain professional experience after graduation to recover the cost of their education and build careers in the American job market.
The OPT programme allows international students holding F-1 visas to work in jobs related to their fields of study. Most eligible graduates can receive up to 12 months of work authorisation after completing their courses. Students graduating from qualifying science, technology, engineering and mathematics (STEM) programmes can apply for an additional 24-month extension, giving them up to three years of employment experience in the US.
The programme has traditionally served as an important bridge between American universities and the country’s labour market. It also provides many international graduates, particularly those in technology and engineering, with an opportunity to seek longer-term employment through the H-1B visa system and other employment-based immigration routes.
The DHS has defended the proposed fee, arguing that the OPT system has increasingly been used to bypass restrictions governing employment-based visas. The department has also raised concerns about fraudulent arrangements involving students, employers and educational institutions, maintaining that stricter financial requirements are necessary to protect American workers and strengthen the integrity of the immigration system.
According to the department, 165,524 international students were using the 24-month STEM extension under OPT in 2024. The agency noted that this number was nearly twice the 85,000 H-1B visas generally made available each fiscal year, arguing that the training programme had become an alternative route for foreign graduates to obtain extended employment in the country.
The proposed rule also refers to an investigation that identified more than 10,000 F-1 visa holders who were participating in OPT and working for employers considered highly suspicious. The administration has cited such cases to support its argument that the existing system requires stronger oversight and safeguards against abuse.
The proposed changes could also affect universities, which would have to consider the substantial additional cost before recommending international students for work authorisation. The DHS has acknowledged that institutions may transfer the financial responsibility to individual students, the wider student body or employers. It has also indicated that the higher charges could result in a smaller pool of applicants, forcing universities to be more selective about whom they recommend.
The department has further invited public feedback on an alternative proposal under which the $70,000 fee could be charged again when a student seeks OPT at a new degree level. For instance, a graduate could face the fee after completing a bachelor’s degree and again after completing a master’s degree, depending on the final rules.
The proposal comes amid broader efforts by the Trump administration to tighten employment-based immigration pathways, including the H-1B visa programme, which is widely used by technology companies and other employers to recruit skilled foreign professionals. The administration has argued that the OPT fee would help address concerns about the use of student visas as a route to long-term employment.
However, the proposed measure has not yet been finalised and could face legal challenges. Universities, students and employers will have an opportunity to submit comments during the public consultation process. Under the proposed timeline, the final rule would take effect 60 days after its publication, if approved. The fee would apply to students seeking OPT after the new rules come into force, rather than automatically affecting every student already participating in the programme.
The proposal is likely to add to the uncertainty facing international students considering higher education in the US. For Indian students in particular, the prospect of significantly higher costs to access post-study employment could influence decisions about where to study, whether to pursue STEM degrees and how to plan their careers after graduation. Much will depend on the final version of the rule and how universities, employers and prospective students respond to the proposed charges.
