The Department of Homeland Security has floated a rule that would require U.S. universities to pay tiered fees—ranging from $350 to $3,000 annually—before they may issue Form I-20 endorsements for F-1 students seeking Optional Practical Training (OPT) or STEM OPT extensions. The notice of proposed rulemaking, published 8 October and analyzed in a 14 October Seyfarth Shaw alert, aims to fund SEVIS modernization and additional compliance site-visits. Although the fee is levied on schools, employers that rely on OPT talent could feel indirect effects. Cash-strapped community colleges and smaller private institutions warn they may limit OPT sponsorships or pass costs along as surcharges, potentially reducing the pipeline of early-career candidates for U.S. companies. The rule would also authorize DHS to suspend a school’s OPT-issuance authority for non-payment, instantly stranding international students and creating work-authorization gaps for corporate interns and co-op hires. Universities are mobilizing lobbyists to request a lower flat fee and a phased rollout. Stakeholders have 60 days from publication to file comments. Mobility managers should coordinate with university partners to gauge whether hiring timelines for May 2027 graduates—and the budgeting of relocation costs—could be disrupted if institutions scale back OPT participation.
Source: Seyfarth Shaw LLP
