US proposes ₹67 lakh fee for foreign students seeking temporary work

Foreign students hoping to gain temporary work experience in the United States could face a steep new financial hurdle under a proposal by the Department of Homeland Security (DHS), which seeks to impose a fee of up to $70,000 (about ₹67 lakh) for initial Optional Practical Training (OPT).

Under the proposed rule, F-1 nonimmigrant students would have to pay a $70,000 (₹67 lakh) fee for initial OPT and $30,000 (₹29 lakh) for any subsequent OPT. The DHS said the measure is intended to combat fraud, strengthen oversight of the programme and protect American workers.

The proposal could significantly change the economics of OPT, a programme that allows eligible international students to gain temporary employment in the US in jobs directly related to their field of study.

“Optional Practical Training was never meant to be a back door into the American workforce, a subsidy for cheap labor, or a prize for those who game the system,” a DHS spokesperson said.

The department said the proposed fees would also help prevent employers from using OPT as a source of low-cost foreign labour.

“American workers should not have to compete against a programme that has been turned into a pipeline for cheap foreign labor,” the spokesperson added.

What is OPT and who can use it?

Under current rules, eligible F-1 students can participate in OPT if their employment is directly related to their major field of study. Students must first receive a recommendation from their designated school official (DSO) and then apply to US Citizenship and Immigration Services (USCIS) for employment authorisation.

OPT can be taken either while a student is completing an academic programme, known as pre-completion OPT, or after graduation, known as post-completion OPT.

Eligible students can generally receive up to 12 months of OPT at each education level. Graduates in science, technology, engineering and mathematics (STEM) fields may qualify for an additional 24-month extension.

DHS cites fraud and ‘pay-to-stay’ schemes

The DHS said the proposal follows concerns identified by the Student and Exchange Visitor Program (SEVP) over alleged misuse of the OPT system.

According to the department, SEVP has identified cases involving schools, designated school officials, employers and F-1 students allegedly exploiting existing regulations. These include problematic worksites and so-called “pay-to-stay” visa schemes, in which students may maintain their immigration status without legitimate educational or employment activity.

The DHS argues that the proposed fees would encourage schools to exercise greater scrutiny before recommending students for OPT and would strengthen the overall integrity of the programme.

The proposal also forms part of broader administration efforts to protect US workers and tighten oversight of employment-based immigration programmes.

Schools would have to pay before recommending students

The proposed system would place the fee obligation on SEVP-certified schools before their designated officials recommend students for OPT through the Student and Exchange Visitor Information System (SEVIS).

The fee would also have to be paid before students apply to USCIS for employment authorisation.

The DHS said USCIS would not grant employment authorisation if the required fee had not been paid by the school.

Importantly, the proposed fee would not be linked to a particular employer. Instead, it would apply whenever a school recommends an F-1 student for any type of OPT.

The DHS said the money collected would be deposited into the US Treasury.

Public comments open until November 9

The DHS has opened a public comment period on the proposed rule from October 8 through November 9. A separate 60-day comment period has also been opened for the Paperwork Reduction Act provisions.

The department will review comments and supporting material submitted during the consultation period and may revise the proposal before taking further action.

Students, universities, employers and other stakeholders have been advised to refer to the Federal Register notice for details on how to submit comments.

The Student and Exchange Visitor Program is also expected to provide updates through SEVIS Broadcast Messages, Study in the States and its field representatives.

For international students, particularly those planning to build early-career experience in the US after graduation, the proposal could represent a major shift in the cost and accessibility of post-study employment.