Proposed OPT Fees May Disrupt International Talent Pipeline

A proposed rule from the U.S. Department of Homeland Security (DHS) would impose substantial new fees on Optional Practical Training (OPT), creating a significant hurdle for employers that rely on international students as part of their early-career talent pipeline.

Under the proposal, U.S. schools would pay a $70,000 fee for each F-1 international student receiving initial OPT authorization and $30,000 for each subsequent authorization, including STEM OPT extensions. The fees would have to be paid before a designated school official could recommend a student for OPT, and before F-1 students apply for employment authorization, potentially adding significant costs to the process before international students and graduates can begin working in the U.S.

Specialty Credential: U.S. Employment Immigration

For employers, OPT is an important pathway for international students to gain U.S. work experience after completing their studies, particularly in fields where employers face persistent demand for technical skills.

OPT allows eligible F-1 students to work in jobs related to their field of study for up to 12 months. Graduates in science, technology, engineering, and mathematics (STEM) fields can qualify for an additional 24-month extension. Roughly 418,000 students had OPT work authorization in 2024, according to data from U.S. Immigration and Customs Enforcement (ICE).

That makes the program a significant component of the talent pipeline for employers recruiting from U.S. colleges and universities. Many international graduates use OPT to gain experience while pursuing longer-term employment authorization through the H-1B visa program.

DHS said the fees are intended to combat fraud and abuse, protect U.S. workers and encourage schools to exercise greater oversight of OPT participation. The agency cited investigations involving fraudulent employers, shell companies, falsified employment arrangements, and “pay-to-stay” schemes.

DHS also expressed concern that OPT participation has grown substantially in recent years and that some employers may use the program as an alternative to other employment-based visa pathways. According to the agency, the proposed fees could reduce participation levels and help limit labor market impacts associated with the program.

Higher Costs, Fewer Candidates

Although the proposed fee would be paid by schools rather than employers, HR leaders could still feel its effects. Colleges and universities would need to absorb the cost before recommending students for OPT, potentially prompting institutions to become more selective about which students they support.

The proposal could affect employers indirectly if fewer international graduates obtain OPT authorization or if schools become more reluctant to recommend students for the program.

That could be particularly significant for companies that recruit heavily from U.S. universities for technology, engineering, and other specialized roles. International students have become an established source of early-career talent, and limiting access to OPT could narrow the pool available to employers competing for specialized skills.

“OPT enables international students to gain the same hands-on experience as their domestic peers while filling labor shortages in high-demand STEM fields and generating jobs for U.S. workers on U.S. soil,” said Fanta Aw, executive director and CEO of NAFSA: Association of International Educators, based in Washington, D.C. “Driving away the talents, perspectives, and aspirations of international students will only hurt American innovation, economic growth, workforce development, and global leadership,” Aw said.

The potential change comes amid broader uncertainty surrounding employment-based immigration. The Trump administration recently finalized a rule that sought to prevent international students from staying in the U.S. for more than four years without approval from the federal government. The move drew swift backlash from higher education leaders who said that many programs are longer than four years. A federal court prevented the rule from taking effect in September.

The administration also recently proposed a $103,265 fee for new H-1B workers, and an extension of a separate $100,000 fee for H-1B workers from abroad.

Monitor the Proposal

The OPT proposed rule remains subject to public comment and could be revised before becoming final. DHS will accept public comments on the proposed rule through November 9. If finalized, the rule would take effect 60 days after publication of the final rule.

That gives employers time to assess their exposure and consider how changes to OPT participation could affect upcoming hiring plans.

HR and talent acquisition leaders should identify roles and business units that rely heavily on international students and recent graduates, evaluate university recruiting pipelines, and monitor how schools respond to the proposed financial burden. Organizations may also want to consider how a reduction in OPT participation could affect their longer-term H-1B sponsorship strategies.