The Trump administration has proposed a US$70,000 (about S$89,600) fee for international students seeking to work in the United States after graduation, in a move that could significantly reshape one of the country’s most popular pathways from university study to employment.
The Department of Homeland Security proposed the fee on Oct 7, targeting students who participate in the Optional Practical Training (OPT) programme.
The proposal would require US universities and other certified institutions to pay the fee for each international student they recommend for OPT — rather than requiring the student to pay it directly. A US$30,000 fee would apply for each subsequent renewal.
The proposal is part of a broader Trump administration effort to tighten immigration rules and restrict what officials describe as abuses of programmes that allow foreign nationals to study and work in the United States.
What is the OPT programme?
OPT allows eligible international students on F-1 student visas to work in jobs related to their field of study.
Students are generally allowed to work for up to 12 months after completing their studies. Graduates with qualifying degrees in science, technology, engineering and mathematics — commonly known as STEM fields — can receive an additional 24 months of employment authorisation.
The programme has become an important bridge between US higher education and the labour market.
Many international graduates use OPT to gain professional experience before seeking longer-term employment through programmes such as the H-1B visa, which is widely used by technology companies and other employers hiring highly skilled workers.
Under the proposed rule, schools would pay US$70,000 for an initial OPT recommendation and US$30,000 for each renewal.
The current system does not impose anything remotely close to that cost on universities. International students generally face an employment authorisation application fee of around US$520, according to the Washington Post.
DHS says the fee is aimed at fraud and abuse
The Department of Homeland Security says the proposal is intended to strengthen the integrity of the immigration system.
The agency has argued that OPT can be abused by employers seeking lower-cost foreign labour and described the programme as a potential “pipeline for cheap foreign labour”.
DHS said the new fee would help ensure that students, employers and educational institutions are participating in training arrangements that are consistent with the terms of the F-1 visa programme.
But opponents say the price could effectively make the programme inaccessible to many universities.
A US$70,000 charge for every student could be especially difficult for institutions with large international enrolments, while the additional US$30,000 renewal charge could make longer-term STEM participation even more expensive.
Universities fear damage to international recruitment
US universities rely heavily on international students, who provide significant tuition revenue while contributing to the academic and cultural life of campuses.
The proposed OPT fee comes at a time when international student enrolment is already under pressure.
The number of new international students entering the United States for the first time fell by 17 per cent last fall, according to figures cited by the American Council on Education. Some individual universities have reported even larger declines of between 30 and 40 per cent.
Education groups warn that the prospect of working in the US after graduation is one of the major factors influencing where international students choose to study.
Sarah Spreitzer of the American Council on Education said OPT is one of the reasons students choose American universities because it provides an opportunity to gain work experience after completing their education.
NAFSA, an association representing international education, also criticised the proposal.
Its chief executive, Fanta Aw, warned that driving away international students could hurt US innovation, economic growth and workforce development.
Technology sector could feel the impact
The proposal could have consequences beyond universities.
International students, particularly those graduating in STEM disciplines, are an important source of talent for US technology and other highly skilled industries.
OPT allows graduates to gain practical experience in their field before potentially transitioning to an H-1B visa.
That pathway has been especially important for graduates from countries such as India and China, who make up a significant share of foreign students and skilled workers in the US.
Technology companies have long relied on international graduates to fill positions requiring specialised technical skills.
A large increase in the cost of hiring or retaining such graduates could therefore affect both employers and universities.
Critics argue that the proposal could ultimately make American universities less attractive compared with institutions in other countries, potentially reducing the international talent pool available to US companies.
Schools would bear the proposed cost
Although headlines about the proposal have focused on the US$70,000 price tag, the rule is structured differently from a normal student visa fee.
The educational institution would be responsible for paying the proposed fee, rather than the student making the payment directly.
That distinction could determine how universities respond.
Schools could potentially decide not to recommend students for OPT rather than absorb tens of thousands of dollars in additional costs for each participant.
Universities could also face pressure to pass some of the expense on indirectly through tuition, fees or other charges, although it remains unclear how institutions would respond if the rule is ultimately adopted.
The Washington Post reported that the proposed fee could sharply restrict access to OPT and disrupt industries that depend on international graduates.
Proposal faces possible legal challenges
The plan is not yet final.
The public will have an opportunity to comment on the proposal before DHS decides whether to implement it. Reuters reported that the department intends to allow a 30-day public comment period, while AP’s reporting on the proposal said the public has 60 days to comment. The exact procedural timetable will depend on the formal rule published by DHS.
The proposal is also expected to face legal challenges.
Doug Rand, a former senior adviser at US Citizenship and Immigration Services, predicted that the fee could be struck down in court, pointing to legal challenges surrounding other Trump administration immigration measures.
He argued that imposing an extremely high fee would effectively discourage universities from using OPT without formally eliminating the programme.
Comes amid broader immigration crackdown
The OPT proposal is the latest in a series of measures affecting international students and foreign workers in the United States.
The administration has already tightened rules surrounding student status and has pursued restrictions on employment-based immigration.
In September, Trump extended restrictions affecting H-1B workers, including a requirement associated with a US$100,000 payment for certain new H-1B petitions. The White House said the measures were intended to address what it considers abuses of the programme and protect American workers.
The administration has also pursued restrictions affecting the amount of time some international students can remain in the country without additional government approval.
A federal court blocked one such rule from taking effect in September following objections from higher education groups.
The proposed OPT fee therefore fits into a wider effort to make foreign student and employment programmes more restrictive.
Critics say the policy could hurt US competitiveness
Opponents of the proposal argue that international students should be viewed as a source of talent rather than primarily as an immigration risk.
American universities compete globally for students, and countries such as Canada, Australia and the United Kingdom offer their own pathways allowing international graduates to obtain work experience after completing their studies.
If the US makes its pathway significantly more expensive or uncertain, education groups fear students could choose other destinations.
The concern extends to American businesses, particularly industries that depend on highly skilled workers.
“Driving away the talents, perspectives, and aspirations of international students will only hurt American innovation, economic growth, workforce development, and global leadership,” Aw said.
A major test for international students
For international students considering a US education, the proposed fee could become a major factor in deciding where to study — even though it is not yet in force.
A student could spend several years paying US university tuition with the expectation of gaining professional experience in the country afterward. The possibility that a university could face a US$70,000 charge for recommending that student for OPT could fundamentally change that calculation.
For universities, the question is whether the academic and financial benefits of international students would justify potentially absorbing a substantial new employment-related cost.
For employers, the issue is whether a policy intended to protect American workers could instead make it harder for US companies to recruit graduates trained at American universities.
The Trump administration says the proposal is necessary to combat fraud and protect American labour.
Higher education groups and immigration advocates warn that it could discourage international students, weaken the US talent pipeline and damage American competitiveness.
For now, the US$70,000 OPT fee remains a proposal, not a final requirement. But if implemented, it would represent one of the most dramatic changes yet to the system that allows international students to move from American classrooms into the US workforce.
