Trump’s $70,000 OPT fee proposal for international students explained: What is OPT and who will bear the cost?

The Trump administration’s proposal to impose a $70,000 fee for initial Optional Practical Training (OPT) has put a spotlight on a programme widely used by international students seeking to gain work experience in the United States after completing their studies. The US Department of Homeland Security (DHS) has proposed charging $70,000 for each F-1 student seeking initial OPT and $30,000 for any subsequent OPT. DHS says the move is aimed at tackling fraud and abuse, strengthening the integrity of the immigration system and protecting US workers. Here is what the proposed change means and how the OPT system works. What is OPT?

Optional Practical Training, or OPT, is a temporary employment programme for eligible F-1 international students in the US.It allows students to work in a job that is directly related to their major or field of study. The programme is designed to give foreign students practical experience that complements their academic education. Students can generally seek OPT either before completing their studies or after graduation. Who can apply for OPT?

OPT is available to eligible F-1 nonimmigrant students enrolled at US educational institutions. Students must receive a recommendation from their designated school official (DSO) before applying for employment authorisation from US Citizenship and Immigration Services (USCIS). The work undertaken through OPT must be related to the student's field of study. How long can students work under OPT? Eligible F-1 students can receive up to 12 months of OPT at each education level. For example, students progressing through different levels of education may become eligible for OPT associated with each level, subject to the applicable rules. There is also a special provision for graduates in science, technology, engineering and mathematics (STEM) fields. Eligible STEM graduates can receive an additional 24-month extension, potentially allowing them to remain authorised to work for a longer period after graduation. How much does OPT currently cost?

Under the system described in the proposal, students currently face fees of roughly $500, making the proposed $70,000 charge a dramatic increase. The proposed initial fee would be 140 times the current amount. The proposal would also establish a $30,000 fee for subsequent OPT, creating another significant financial hurdle for students seeking additional work training. Why is DHS proposing the $70,000 fee? DHS says the proposed fees are intended to combat fraud and abuse, strengthen the integrity of the immigration system and protect US workers. The department has raised concerns about the way the OPT programme is being used and argues that some participants, employers and institutions have exploited existing rules. DHS says its Student and Exchange Visitor Program has identified schemes involving problematic worksites and so-called “pay-to-stay” arrangements, in which students may maintain their immigration status without receiving legitimate educational or employment benefits. The department argues that the higher fees would encourage schools to exercise greater oversight before recommending students for OPT.Who would pay the proposed $70,000 fee?

The proposal would require the SEVP-certified school to pay the fee before its designated school official recommends an F-1 student for OPT.The fee would apply when a school recommends a student for OPT rather than being tied to a specific employer. However, the financial impact could ultimately extend to students, employers and educational institutions depending on how the costs are handled. Does the proposal apply to all international students?

No. The proposed fee specifically concerns eligible F-1 nonimmigrant students seeking OPT.It is not a blanket $70,000 fee on every international student studying in the US.Students who do not seek OPT would not be subject to the proposed OPT charge simply because they hold an F-1 visa. When could the rule take effect? The proposal is not yet final. The rule is subject to a 30-day public comment period before DHS can decide whether to finalise it. DHS has said it would wait 60 days after finalisation before implementing the rule, giving schools, students and employers time to prepare.