ICE cracking down on fraud within student job program
The U.S. Immigration and Customs Enforcement (ICE) has uncovered more than 10,000 instances of fraud involving foreign student visas within the Optional Practical Training (OPT) program. Jonathan Fahey, who has previously held the position of acting director at ICE, shares insights on what this could mean for American workers.
A new proposal from the Department of Homeland Security (DHS) introduces significant fees for international students looking for temporary work in their fields of study. The agency claims this move aims to curb the influx of low-cost labor into the United States.
If this rule passes, holders of F-1 visas would incur an initial fee of $70,000 for authorization to participate in the OPT program, in addition to a $30,000 charge for any extensions.
A spokesperson for DHS remarked, “Optional practical training was never intended to serve as an entry point into the American job market, a source of low-cost labor, or a reward for those who manipulate the system.” They added that the changes are designed to compel foreign students to demonstrate their value to potential employers to ensure that American workers are not disadvantaged by a program that has evolved into a channel for inexpensive foreign labor.
OPT provides eligible foreign students the opportunity to work part-time while studying and full-time for a specified time after graduation, with costs of around $500.
To be eligible, students must secure employment in a field related to their major, receive a recommendation from a designated school official, and obtain authorization from U.S. Citizenship and Immigration Services (USCIS).
Graduates who have degrees in STEM (science, technology, engineering, and mathematics) disciplines may qualify for an additional 24-month extension.
DHS indicates the newly proposed fee structure is in response to significant fraud and abuse identified by the Student and Exchange Visitor Program. The agency has observed that some schools, designated school officials, employers, and F-1 students have taken advantage of loopholes in existing regulations, engaging in practices such as non-compliant work placements and “pay-to-stay” visa operations.
This rule change is expected to require educational institutions to adopt more stringent oversight and selective processes when recommending students for the program.
Yet, there are likely to be legal challenges ahead for this proposal. Doug Rand, director of the Talent Mobility Fund, expressed skepticism on LinkedIn, stating that “DHS has no authority to impose a $70k fee on international students.” He cautioned against overreacting since there might be difficulties in defending this proposed rule in court, similar to other restrictive policies that have been overturned.
The proposal will undergo a public comment phase before any final decisions are implemented.



