The Department of Homeland Security (DHS) has issued a notice of proposed rulemaking to establish very substantial fees for F-1 Optional Practical Training (OPT). The proposed rule would require that U.S. universities pay a fee of $70,000 for each F-1 student recommended for an initial period of OPT and a fee of $30,000 for any subsequent OPT recommendations for the F-1 student. DHS explains that the fees are to combat fraud, strengthen the integrity of the immigration system, and protect U.S. workers. DHS further states that without the fees, it cannot run OPT consistent with its fraud-prevention focus and "may shut down the program entirely.” Unsurprisingly, DHS expects the fees to reduce the number of students in OPT, because schools would become more selective about whom they recommend.

Background

The F-1 visa is a nonimmigrant visa that allows foreign nationals to study full-time at U.S. educational institutions approved by the Student and Exchange Visitor Program (SEVP), a program managed by U.S. Immigration and Customs Enforcement (ICE). Students with F-1 visas are only permitted to work in the U.S. with specific authorization. F-1 students can apply for up to 12 months of OPT at each educational level. The work must be directly related to the student's major and may occur before graduation (pre-completion OPT) or after (post-completion OPT). Students with qualifying STEM degrees may apply for an additional 24-month OPT extension. To obtain OPT, the F-1 student needs to obtain an OPT recommendation on an endorsed Form I-20 issued by the school's Designated School Official (DSO) and must then apply to U.S. Citizenship and Immigration Services (USCIS) on Form I-765 for an Employment Authorization Document (EAD).

Details About the Proposal

• Fee structure: The school would pay a $70,000 fee, once per student, the first time the student is recommended for any type of OPT. The school would pay a $30,000 fee for any subsequent OPT recommendation for that student, whether for another period of pre-completion OPT, post-completion OPT, or STEM OPT.
• Payment and verification: Prior to the DSO recommending OPT and issuing an endorsed Form I-20, the DSO must confirm that the school has paid the applicable OPT fee for the student. The fee is not tied to a specific employer, so a change of employer would not trigger a new fee. The fees collected under the proposed rule would be deposited in the U.S. Treasury. 
• Who bears the cost: Payment is the school's legal obligation. However, DHS acknowledges that schools may pass the cost on to F-1 students, to all students, or to employers. 
• Refunds: Schools would be able to request refunds for cases in which an F-1 student is not issued an EAD for the requested OPT. However, DHS specifies that fees will not be refunded under any circumstances once the student has been granted an EAD for OPT. The DSO would need to remove the F-1 nonimmigrant student's OPT recommendation in the Student and Exchange Visitor Information System (SEVIS) before requesting a refund
• Possible fee at each degree level: DHS is also considering requiring the $70,000 initial fee again when a student moves to a higher degree level, for example from a bachelor's program to a master's program. DHS has specifically asked for public comments on this option. 
• Effective date and grandfathering: As proposed, the final rule would take effect 60 days after it is published in the Federal Register, and the new fees would apply only to OPT dated on or after that date. Any OPT recommended, approved, or underway before the rule’s effective date would be grandfathered, so no fee would be owed for that period. However, the protection would not carry over to later requests. A request for STEM OPT or other OPT recommended after the effective date would trigger a fee, and because no $70,000 fee would have been paid for a grandfathered student, the school would owe the full $70,000 for that later request, not the reduced $30,000.

What the Proposed Fee Means for F-1 Students and Employers

The proposed rule is not yet in effect. Comments are due by November 9, 2026, and DHS may change the rule in response to the comments before publishing a final rule. As proposed, the final rule would take effect 60 days after publication. OPT issued before that date would not be subject to the fee, but any later request, including recommendations for STEM OPT extensions, would be subject to the fee.

If the rule is finalized, schools may recommend OPT very selectively and/or may pass the cost on to students or employers. This new rule could result in a fundamental change in the number of students who come to study in the United States and U.S. employers’ recruitment patterns.

Students and employers who rely on OPT should start planning for this potential change and consider obtaining OPT endorsements as soon as possible to take advantage of grandfathering.

For questions about how this proposal may affect your organization, your students, or your employees, please contact the Pryor Cashman attorney you work with or a member of our Immigration Practice.

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Counsel Linda Sabatello was a contributing author to this client alert.