On October 7, the Department of Homeland Security (DHS) announced a proposed rule that would require U.S. universities to pay a $70,000 fee for each F-1 student’s initial Optional Practical Training (OPT) work authorization and $30,000 for subsequent OPT requests. OPT is work authorization granted by regulation to international students at the university level and allows those students to work in their field of study during school breaks or after graduation.
According to the proposed rule, U.S. Citizenship and Immigration Services (USCIS) will not approve OPT work authorization for a student unless the fee has been paid by the school. As proposed, the school’s Designated School Official (DSO) will not be able to recommend the OPT authorization in SEVIS, the government’s student tracking system, until the OPT fee is paid.
DHS may revise the rule after reviewing the public’s comments, which can be submitted October 8 through November 9. Once the rule is finalized, DHS said it would wait 60 days before putting the rule into effect to allow schools, students, and employers to prepare. Legal challenges from higher education groups and business associations are expected. In the proposed rule, DHS claimed its general authority to impose “conditions” on nonimmigrant status allowed it to collect the fee. DHS acknowledged it had no legal authority to retain the fee within DHS and so proposes to deposit the fee in the U.S. Treasury. In this year’s tariffs decision, the Supreme Court has already held that agencies cannot rely on general authority to regulate an activity as authority to collect money from the public as the price of allowing that activity. Courts have relied on that holding to strike down the $100,000 H-1B Proclamation fee. We expect a similar successful court challenge if DHS finalizes this rule.
The proposed fee would apply only to OPT recommendations made after the rule is made effective, not retroactively to OPT already approved and in progress. In the meantime, students continue to be eligible to receive up to 12 months of OPT at each education level, and STEM degree holders may be eligible for an additional 24-month extension. DSOs and students should not alter filing plans based on the proposal alone.
Although the rule does not place the fee burden on the employer hiring the student with OPT, if implemented, schools likely would attempt to pass costs onto the employer. This will undoubtedly shrink the pool of work-authorized graduates, particularly in STEM-heavy fields. OPT helps fill labor shortages in high-demand STEM fields, and implementation of this rule will impact innovation, economic growth, and workforce development.
If you would like to discuss hiring OPT students or planning for the upcoming H-1B lottery, please contact a Klasko attorney. Universities, employers, and other organizations interested in commenting on the proposed rule can also reach out to us for assistance in preparing comments before the November 9 deadline.
The material contained in this post does not constitute direct legal advice and is for informational purposes only. An attorney-client relationship is not presumed or intended by receipt or review of this presentation. The information provided should never replace informed counsel when specific immigration-related guidance is needed.
© 2026 Klasko Immigration Law Partners, LLP. All rights reserved. Information may not be reproduced, displayed, modified, or distributed without the express prior written permission of Klasko Immigration Law Partners, LLP. For permission, contact info@klaskolaw.com.
