Trump’s new $70,000 OPT fee could reshape US jobs path for Indian students. What changes?

The Trump administration has proposed a steep new fee for international students seeking to work in the US after graduation, potentially reshaping one of the most important pathways from an American university degree to employment.  

The US has proposed a $70,000 fee for international students who want to work in the country through the Optional Practical Training (OPT) programme — a move that could significantly raise the cost of staying on in the US after graduation and hit the pipeline of foreign talent into American companies.  

Under a proposed rule released by the Department of Homeland Security (DHS), universities and other institutions certified under the Student and Exchange Visitor Program would have to pay $70,000 for an initial OPT recommendation for an F-1 international student. A further $30,000 fee would apply for subsequent OPT recommendations, including STEM OPT extensions.  

The proposal has not yet taken effect. The notice is scheduled for publication in the Federal Register on October 8, after which the public will have 30 days to submit comments on the rule. DHS would then have to review the feedback and issue a final rule before the new fees could become effective.  

What is OPT & why does it matter?  

OPT allows eligible F-1 international students to gain practical work experience directly related to their field of study. Students can generally receive up to 12 months of OPT, while graduates in qualifying science, technology, engineering and mathematics (STEM) fields can seek a further 24-month extension.  

That makes OPT particularly important for international graduates looking to begin careers in sectors such as technology, engineering and finance. It is also an important route through which foreign graduates can gain US work experience before potentially moving to other employment-based immigration categories.  

DHS data cited in the proposed rule show the scale of the programme. In 2024, 194,554 F-1 students participated in OPT and 95,384 participated in STEM OPT. DHS noted that participation has increased substantially over the past decade.  

Is the $70,000 fee paid by students?  

Technically, the proposed fee would be charged to the SEVP-certified educational institution, rather than directly to the student when the university recommends the student for OPT.  

However, that does not necessarily mean students or employers would be insulated from the cost. Immigration law firm Fragomen said universities would be permitted to recoup the cost from students or employers, potentially creating a major financial burden for those seeking to use OPT. 

The existing USCIS employment authorisation filing fee is lower. The current Form I-765 fee is $470 for online filing and $520 for paper filing in the standard category. That means the proposed $70,000 institutional fee would be more than 100 times the current online I-765 filing fee.  

Why is DHS proposing the fee?  

DHS says the objective is to combat fraud, strengthen the integrity of the immigration system and protect US workers.  

The department argues that OPT has grown substantially and says the programme has become a channel for what it describes as cheap foreign labour. The proposed rule says the fee would encourage universities to conduct more detailed reviews before recommending students for OPT. 

DHS also points to the rapid expansion of STEM OPT. The department said that in 2024, 165,524 F-1 students were participating in STEM OPT, nearly twice the annual H-1B visa cap.  

What it means for international students?  

The biggest question is whether universities will be willing to absorb a $70,000 cost for each student. DHS itself acknowledges that the proposed fee could substantially reduce participation.

Its regulatory analysis says the agency cannot confidently predict how much OPT participation would fall because of the new cost. It considered scenarios in which institutions might be less willing to pay the $70,000 fee for students eligible only for one year of non-STEM OPT, while being more willing to pay for students eligible for the additional two-year STEM extension.  

That could make STEM graduates relatively more attractive to institutions than students whose degrees qualify only for the standard 12-month OPT period.  

DHS estimates that the new fees could generate between $8.4 billion and $16.5 billion a year, with a central estimate of about $12.4 billion, depending on participation levels.  

Why Indian students could be closely affected  

The proposed change could be particularly significant for students from countries such as India and China, which account for large numbers of international students in US higher education and are major sources of skilled workers entering the American technology sector.  

For Indian students, OPT is especially important because it can provide a period of US work experience after completing a bachelor's, master's or doctoral programme before seeking longer-term employment options.  

But the financial structure of the proposed rule could change the calculation for universities, employers and students alike. If institutions pass the cost on, a $70,000 charge could make some OPT opportunities economically difficult for international graduates. If universities absorb it, they could instead become more selective about which students they recommend for the programme.