US OPT restrictions could affect innovation and jobs, researchers warn

International graduates working in the United States through Optional Practical Training (OPT) could contribute to innovation and job creation beyond their own employment, researchers say, as the Trump administration considers new fees for the programme.

The discussion comes as the Department of Homeland Security considers a proposal that could require colleges to pay up to $100,000 in fees for students participating in the temporary work programme after graduation.

The proposed fee has not been finalised and remains subject to public comments.

OPT participation has nearly doubled

The number of international students participating in OPT rose from approximately 147,000 in the 2015–16 academic year to around 294,000, according to data from the Institute of International Education.

OPT participants now account for about a quarter of F-1 visa holders in the US, compared with 15.4% a decade ago. Much of the growth has involved graduates of master’s programmes.

OPT allows eligible international students on F-1 visas to gain practical work experience related to their studies. Standard post-completion OPT can last up to 12 months, while eligible graduates in science, technology, engineering and mathematics (STEM) fields can apply for an extension of up to 24 months.

For international students, the opportunity to work after graduation can influence where they choose to study. Experts said restrictions could affect student demand and university revenue.

Research links OPT workers with innovation

Research by Michael Clemens, an economics professor at Johns Hopkins University, is examining the relationship between STEM OPT workers and innovation in US cities. Preliminary findings suggest that, for every 100 current and former STEM OPT employees, slightly more than eight patents are filed and approved on average, alongside about two high-growth technology start-ups.

The research is still being completed, and the figures should not be interpreted as a guaranteed outcome for every group of 100 workers.

Other research cited in the report suggests that the presence of OPT participants may increase demand for US workers in some areas, partly through business creation. One study also found a decline in employment among US workers who were recent graduates of master’s programmes, indicating that the effects may vary across groups.

Researchers argue that international graduates can complement domestic workers by bringing specialised skills, supporting innovation and helping businesses expand, rather than simply competing for the same jobs.

Proposed fee raises concerns for universities

The Department of Homeland Security’s proposal would impose a $70,000 initial fee for an OPT recommendation at a school for a student, followed by a $30,000 fee for subsequent recommendations for that same student. The proposed charges cover pre-completion OPT, post-completion OPT and STEM OPT recommendations.

The proposal leaves schools to determine how they would source the money, raising concerns that costs could be passed on to students or employers.

Advocates for international education have warned that the fees could make the US a less attractive destination for international students and weaken employers’ access to global talent. However, the final impact will depend on whether the proposal is adopted and how universities, students and employers respond.

The economic evidence remains incomplete because the US government does not publish comprehensive data on OPT participation and employment. Researchers therefore rely on a combination of institutional records, surveys and studies of highly skilled immigration.

The debate over OPT is consequently not only about international students’ post-study work options, but also about how those opportunities intersect with research, entrepreneurship and the wider US labour market.