On October 8, 2026, the Department of Homeland Security proposed the issuance of a new fee of $70,000.00 to be applied to those foreign students in F1 visa status with intent to pursue training after completion of studies in the United States. 

Known as “OPT”, Optional Practical Training – many students are eligible to enroll in a 12-month period of training after completion of undergraduate and/or graduate programs.  Further, those foreign students majoring in the STEM fields (Science, Technology, Engineering and Math) may pursue OPT studies for an additional period of 24 months after completion of studies, total a 36-month period of stay in the United States to complete training after conferral of a formal university level degree. Should any subsequent studies after the first one-year of practical training be recommended, an additional fee of $30,000.00 would be imposed by new federal regulations to complete such training.

In a Federal Register publication, the administration maintained that the fees proposed emanate from the need to serve as an anti-fraud measure relating to the OPT programs. Failure to impose the fee might result in the termination of the OPT program completely, as claimed by the federal government.

This proposal by the administration represents the latest effort and initiative to increase the cost to U.S. companies employing foreign nationals.  The H-1B program has already been subject to the $100,000 fee for H-1B petitions filed or only approvable for consular notification. This initiative is currently on hold in federal court pending litigation. The proposed $103,265.00 filing would apply to all H-1B cap petitions. This proposed rule will most likely also face court challenges.

How Would the Imposition of the Fees Work?

• F-1 students may submit requests for practical training during or after completion of their programs. 
• The university’s Designated School Official (DSO) who would administer the programs for foreign students would recommend the pursuit of OPT and the student would thereafter apply for an OPT employment authorization document. 
• The fee to apply for an employment authorization document pursuant to the favorable recommendation by the DSO is $520.00. 

Who Pays for the New Fees?

The proposed federal government rule would introduce the new fees at the juncture of the DSO making a favorable recommendation for OPT and the university would be mandated to pay the new $70,000.00 fee and the new $30,000.00 fee for each subsequent OPT recommendation. The fee would apply both to pre-completion and post-completion of training as contemplated by the regulations. The regulations further mandate that the university pay the fee, but they could pass along the costs to the F-1 student or to the U.S. employers of the foreign student.  If the OPT employment authorization is denied, the university could request a refund of the fee.  The fees would only apply prospectively and after the regulations take effect. 

Effective Date of Regulation

The regulation would not take effect until a public feedback period elapses during a 30-day comment period and the Department of Homeland Security would thereafter issue a final regulation with a notification that would include a final implementation date. 

The effort to further restrict training for foreign students and the ability of U.S. employers to hire them constitutes another obstacle and challenge for foreign students, and U.S. companies that might consider hiring foreign talent, as well as especially affect students interested in gaining training and exposure to U.S. culture and professional endeavors.

Conclusion

There is no doubt that this proposal, too, is destined for federal court litigation as the university community, the U.S. business community and the global student community all have invested their time and efforts into cultivating a culture of education and learning that transcends borders.

Should the additional fees of $70,000 and $30,000 be implemented by the administration, the effect on our universities would include the consequence of reduced enrollment in U.S. universities by international students, the additional strain on institutional budgets and the lack of the ability of U.S. employers to gain access to international talent to meet workforce needs in the healthcare, STEM, research and many other fields.

Students interested in the U.S. educational system could instead turn to Canada, Australia, Europe and the U.K. for opportunities.  The loss of international talent and contributions to our country would be incalculable.

FOR MORE INFORMATION:
The Business & Corporate Immigration practice at Tarter Krinsky & Drogin will continue to follow this update closely. If you have any questions or would like to discuss, please reach out to a member of our team.