A program previously flagged by the Trump administration as a possible major fraud risk is now facing a significant transformation.
Last Wednesday, the Department of Homeland Security proposed a rule that could alter an essential “pipeline” for nonimmigrant students looking to secure jobs in the United States.
A spokesperson for DHS mentioned, “A $70,000 fee paid by universities could drastically reduce participation, making the Optional Practical Training program difficult to utilize for many international graduates.”
The DHS is looking to modify the Optional Practical Training program, which is a often-used by nonimmigrant students holding F-1 visas to gain temporary employment in the U.S.
If this rule is finalized, universities would face heavy financial obligations when recommending students for OPT.
According to a DHS spokesperson, “Optional Practical Training was never intended to serve as a gateway into the U.S. job market or a source of inexpensive labor.” They also highlighted that American employees should not have to compete against a system that has become a pathway for cheap foreign labor.
The administration believes that increasing financial barriers could help reduce the fraud that has plagued the OPT program, which has faced issues like questionable work sites and “pay-to-stay” visa schemes.
This new regulation would impose an additional $30,000 fee for any extra OPT opportunities, meaning that a student receiving OPT both during and after their studies would require their university’s endorsement for each instance, paying the base fee of $70,000 plus the extra $30,000.
The proposal specifies that fees will be charged to the universities recommending the students, rather than the employers hiring them.
Collected fees are to be deposited into the U.S. Treasury.
There has been ongoing calls for reform of the OPT system, notably from Senator Eric Schmitt (R-Mo.).
In November 2025, Sen. Schmitt pointed out the “serious issues” surrounding the OPT program, and his push for a reassessment gained traction in the Trump administration.
He referred to the OPT program, established through DHS regulations rather than law, as a “back door” for foreign workers into the U.S. job market, claiming it encourages universities to act as “visa mills.”
Former DHS Secretary Kristi Noem responded to Sen. Schmitt earlier in the year, stating that the department was re-evaluating the program.
Immigration attorney Rahul Reddy characterized the proposed changes as an “extraordinary” shift that could take effect around the next graduation season. He noted, “While this proposal doesn’t outright eliminate OPT, a $70,000 fee might significantly limit its viability for many international students.”
The DHS is inviting public comments before finalizing the rule. Individuals can review the proposed regulation on the Federal Register’s website and submit their feedback until November 9.
