If approved, the fee could make the US a less attractive destination for international students and impact universities as well as employers in technology and finance sectors that hire foreign graduates for technical roles. The Department of Homeland Security (DHS) is still discussing the proposal, and it is unclear whether the White House will approve it. Officials have yet to decide if the fee would be paid by the students themselves or by universities and employers.
MUST READ | War to end in Gaza? Trump announces Hamas disarmament deal; Israel says terms 'unsatisfactory'
THE ROAD GETS TOUGHER
OPT permits most students on F-1 visas to work for up to one year in their field of study after graduation, while those in science, technology, engineering, and mathematics (STEM) courses can work for up to three years. The programme serves as a bridge between university and employment in the US and often helps graduates transition to H-1B work visas. In 2024, about 419,000 foreigners were working on OPT.
For many international students, the opportunity to work after graduation is a key reason for choosing an American degree. OPT allows them to gain work experience and sometimes recover part of their education costs. The proposed fee could become a significant financial barrier for these graduates. Universities and education experts warn that such a move may reduce the US's appeal as a study destination.
The fee aligns with President Donald Trump's broader efforts to restrict legal immigration. It resembles a previous attempt to impose a $100,000 levy on H-1B visas, which faced opposition and was blocked by a court. The earlier plan aimed to apply the fee to all H-1B visas but was narrowed to foreign recruits seeking to enter the US after pushback from technology companies.
DON'T MISS | US-Iran war: Trump, team under scrutiny over allegations of playing the stock market; here’s what’s happening
IMMIGRATION RESTRICTIONS
Foreigners entering the US directly on H-1B visas are often recruited by IT and accounting firms, while leading technology and finance companies prefer hiring graduates from American universities and converting their visas from student to H-1B, the report added. A fee on OPT would more directly affect these firms.
A DHS spokeswoman said no policies are final until formally announced and that the department is exploring all options to protect the integrity of the legal immigration system.
DHS is also preparing broader regulations to revise OPT rules, expected to be released this fall. Supporters of OPT say the programme is crucial for attracting international students to the US, as it allows graduates to gain experience and prevents a brain drain to other countries.
Immigration restrictionists have long targeted OPT, arguing it lets companies hire foreign graduates without ensuring they are paid fairly compared to American graduates. During the first Trump administration, senior officials pushed to scrap STEM OPT, which grants three years of work authorisation to STEM graduates, but were overruled by officials favouring business interests.
MUST READ | ‘That was surprising…’: Trump says he’d be disappointed if China sold weapons to Iran