DHS proposes record-breaking $70,000 fee for schools that place foreign students in OPT jobs

In a surprise notice of proposed rule-making released on October 7, the Department of Homeland Security (DHS) said it intends to levy a one-time US $70,000 fee on every U.S. college or university that recommends an F-1 international student for an initial period of Optional Practical Training (OPT). A further US $30,000 would be charged each time the same student receives an additional period of OPT, such as a STEM extension or a new period after moving to a higher degree level. DHS argues that the massive fee—payable by the school, not the student—will “eliminate the subsidy American employers currently enjoy” when they hire foreign graduates and will fund enhanced fraud-detection efforts inside the Student and Exchange Visitor Program (SEVP). Universities insist the proposal will devastate their ability to compete for talent internationally and will ultimately price many students out of the U.S. labor market. OPT has become a critical on-ramp to long-term work visas such as the H-1B; in 2025 more than 200,000 students and recent graduates were working on OPT authorizations. Business groups note that the administration is pursuing the fee in parallel with earlier rules that shortened F-1 admission periods and introduced new caps on stay duration. Taken together, employers fear the measures could choke off a key pipeline for STEM skills just as labor-market data show persistent shortages in AI, semiconductor design and advanced manufacturing. University associations are preparing a coordinated comment campaign ahead of the 60-day deadline and say litigation is likely if DHS finalizes the fee. For multinationals, the rule would mean sharply higher costs to keep interns and graduate trainees in the United States. Institutions say they would have no choice but to pass the fee on to sponsoring companies or to students themselves, radically shifting the cost-benefit analysis of U.S. assignments. Mobility managers should watch the Federal Register for the forthcoming text and consider submitting comments that highlight the proposal’s impact on talent acquisition, DEI objectives and global R&D footprints.