Trump Administration Proposes $70,000 Fee for International Students Seeking US Work Experience

President Donald Trump. His administration has proposed a new fee structure under which educational institutions would be required to pay $70,000 for an international student’s initial participation in the Optional Practical Training programme and $30,000 for a renewal. The proposal remains subject to a 60-day public-comment period(File Photo)

DHS proposal would require educational institutions to pay steep fees for students entering the Optional Practical Training programme; universities, immigration experts and international education groups warn the move could hurt enrolment, innovation and the US workforce

Key Highlights

• DHS proposes a $70,000 fee for each international student’s initial participation in the OPT programme.
• Schools would face an additional $30,000 fee for renewals, under the proposal.
• OPT allows eligible international students to work in fields related to their academic studies.
• STEM graduates can currently qualify for an additional two years of practical training.
• DHS argues the changes are needed to address alleged fraud and the use of OPT as a source of cheaper foreign labour.
• Education and immigration groups warn the proposal could discourage international students from choosing American universities.
• The proposal is not yet in force and is subject to a 60-day public-comment period.

Washington: The Trump administration has proposed imposing a $70,000 fee connected with international students seeking work experience in the United States, in a move that could significantly alter one of the principal pathways through which foreign graduates gain professional experience after studying at American universities.

Under a proposed rule from the Department of Homeland Security, educational institutions would be required to pay $70,000 for each student’s initial application to participate in Optional Practical Training (OPT) and $30,000 for each renewal, according to an Associated Press report.

The proposal is significant because OPT has long been one of the attractions of an American university education for overseas students. It allows eligible international students to obtain temporary employment directly related to their field of study.

Most participating students can work for up to one year following graduation, while graduates in qualifying science, technology, engineering and mathematics disciplines can obtain an additional two-year extension.

If finalised in its proposed form, the new fee structure could substantially increase the cost associated with employing international graduates.

DHS Cites Fraud and Alleged Abuse

The Department of Homeland Security has defended the proposal as part of its effort to address what it describes as fraud and abuse within the programme.

DHS characterised OPT as a “pipeline for cheap foreign labor,” according to AP.

The administration’s argument is that the programme can enable employers to obtain foreign workers under conditions that potentially disadvantage American workers.

International education organisations and immigration specialists strongly dispute that characterisation.

Fanta Aw, CEO of NAFSA, which represents professionals involved in international education, said international students contribute skills and perspectives to the American economy.

“Driving away the talents, perspectives, and aspirations of international students will only hurt American innovation, economic growth, workforce development, and global leadership,” Aw said in a statement quoted by AP.

Why OPT Matters to International Students

For thousands of overseas students, the attraction of studying in the United States extends beyond obtaining an American degree.

OPT provides an opportunity to translate academic learning into professional experience.

This is particularly important in STEM disciplines, where international graduates have traditionally entered technology, engineering, research and other highly skilled sectors.

American universities also have a substantial financial interest in international enrolment because overseas students constitute an important source of tuition revenue.

Businesses, meanwhile, recruit international graduates for specialised and technical positions.

The proposed fees could therefore have consequences extending beyond individual students, affecting universities and employers as well.

Universities Already Worried About International Enrolment

The proposal comes as American higher education institutions are already confronting concerns about declining international enrolment.

Sarah Spreitzer, vice-president of the American Council on Education, told AP that the number of new international students entering the United States for the first time fell 17 per cent last autumn, representing the sharpest decline since the COVID-19 pandemic.

Some individual institutions have reported decreases of between 30 and 40 per cent, she said.

Spreitzer argued that access to post-graduation work experience is an important consideration for international students deciding where to study.

“We know that OPT is one of the reasons that international students choose to study in the United States because they’re able to have that post-graduation work experience,” she said.

A fee of the magnitude proposed could therefore influence decisions being made far beyond American campuses, including by prospective students and families in India and other major sources of international enrolment.

Part of Wider Immigration Changes

The OPT proposal forms part of the Trump administration’s broader effort to reshape legal immigration and the rules governing foreign students and workers.

According to AP, the administration has previously moved to restrict how long international students may remain in the United States without additional federal approval. A federal court blocked one such rule from taking effect in September.

Other employment-related immigration programmes, including H-1B visas and Curricular Practical Training, have also faced scrutiny and legal disputes.

Doug Rand, a former senior adviser at US Citizenship and Immigration Services during the Biden administration, predicted that the proposed OPT fee could face a court challenge.

“When we educate international students at our universities, and they want to work and apply their talents here after graduating, of course we should embrace them — not use an exorbitant fee as a pretext to send them packing,” Rand told AP.

Houston-based immigration lawyer Steven Brown described the proposal as potentially threatening the practical viability of OPT.

He questioned how many educational institutions would be willing or able to absorb a $70,000 charge for an individual student’s participation.

What Happens Next?

The most important point for students currently studying in the United States—or planning to do so—is that the $70,000 fee is a proposal, not an implemented charge.

The public has 60 days to submit comments before DHS can move towards finalising the rule. Even if the department adopts it, litigation from universities, education associations, businesses or immigration groups could affect whether and when it takes effect.

The debate therefore extends beyond immigration policy.

For the United States, the larger question is whether tighter controls on post-study employment will protect domestic workers, as the administration argues, or weaken America’s ability to attract international students and highly skilled graduates, as universities and industry groups contend.

For international students, however, the immediate issue is considerably simpler: an American education has traditionally offered not only a degree but also an opportunity to gain professional experience.

If the proposed fee survives the regulatory and legal process, the cost of that opportunity could change dramatically.

(Source: AP)