Trump Proposes High Fees for International Student Work Program

A proposed federal fee structure could make it substantially more expensive for US universities to employ international graduates, potentially affecting tuition, enrollment and the country's technology workforce. The Trump administration introduced the proposal on October 8, 2026, seeking to charge universities $70,000 for the first year of Optional Practical Training (OPT) and another $30,000 for eligible science, technology, engineering and mathematics graduates who extend their work authorization. The proposed rule, published in the Federal Register, would apply to students who have not received an OPT recommendation from their Designated School Official when the rule takes effect.

According to the proposal, international graduates already participating in OPT and those with pending applications would not be affected. Universities, rather than students or their temporary employers, would be responsible for paying the fees. The administration acknowledges that institutions could pass the additional costs to American students, while higher expenses could also discourage international applicants from studying or working in the United States.

The Department of Homeland Security (DHS) says the fees are intended to address fraud and abuse and reduce what it describes as competition between international graduates and American technology workers. However, the agency acknowledges that the payments would be deposited into the US Treasury as general funds rather than directly funding increased fraud detection.

A study by the Economic Innovation Group estimated that a $100,000 fee for STEM OPT participation could reduce international graduate applicants by 35 percent. Such a decline could force universities to reduce enrollment capacity, increase tuition for domestic students and potentially cancel some master's degree programs. Economist Michael Clemens estimated in a separate study that a $100,000 OPT fee could cost American universities as much as $4 billion annually in lost revenue. Reduced enrollment could also affect employment and economic activity in university communities, according to the analysis cited by the American Immigration Council.

A survey of international students studying in the United States found that 80 percent would reconsider staying in the country if participation in the full STEM OPT period carried a $100,000 fee. The survey also found that 40 percent fewer students would seek to remain in the United States, even if universities paid the fees. The administration's proposed rule estimates that the measure's annual public costs could range from $32 million to more than $8 billion. DHS says the agency could shut down OPT entirely without the proposed fees, although the rule acknowledges that the STEM OPT program is lawful.

The proposal comes amid signs of declining international student enrollment. Schools reported a 10 percent decrease in international student enrollment for the 2026-2027 academic year, according to the American Immigration Council. DHS is accepting public comments on the proposed rule through November 9, 2026.

The agency must review and respond to the submissions before deciding whether to finalize the measure, with or without changes. The proposal could face legal challenges if finalized. A separate $100,000 fee on H-1B visa petitions introduced through a Trump executive order has been blocked in two different courts, according to the American Immigration Council.