$70,000 Shock Hits Campuses

USCIS building sign with DHS seal
Photo: Michael Vi / Shutterstock

DHS moved to slap a $70,000 charge on each foreign student’s work permit request, shifting costs to schools and jolting campuses nationwide.

Story Snapshot

  • DHS proposed a $70,000 fee for initial Optional Practical Training and $30,000 for extensions.
  • DHS says the fees target fraud and protect U.S. workers, with payment due from schools.
  • Higher education groups warn of deep uncertainty and likely pass-through costs to students and employers.
  • DHS’s own estimate pegs potential opportunity costs at about $4 billion per year.

What DHS Proposed and Who Pays

On October 7, 2026, the Department of Homeland Security proposed a new fee structure for Optional Practical Training. The plan would charge $70,000 for an initial request and $30,000 for each extension tied to a single F-1 student. Designated schools, not the government, would pay the fee when recommending a student for work authorization. Agencies and trade outlets reported the same figures as the proposal advanced toward publication in the Federal Register.

DHS said the goal is to fight fraud and abuse, protect U.S. workers, and strengthen program integrity. The department linked the move to problems identified by the Student and Exchange Visitor Program. The costs would be due before a school recommends a student for training, with schools allowed to recover the money from employers or students under their own policies. DHS framed the move as a guardrail on a benefit that has grown over time.

How This Changes the OPT Landscape

The fee would be a dramatic shift from past practice. International students historically paid roughly a few hundred dollars in filing fees for work authorization, not tens of thousands. Policy analysts note that the new burden lands on schools first, which may prompt changes in advising, fewer recommendations, or new contracts with employers. Several reports describe concern that colleges could pass costs downstream to students or hiring firms.

Higher education leaders and immigration advisers warned about campus and market impacts. NAFSA said the plan creates deep uncertainty for international students. Sector watchers said the change could raise barriers to practical training, which many graduates use to start their careers. Some institutions have already briefed students that they, as schools, would be billed first for any OPT recommendation under the draft rule.

Economic Stakes and Competing Claims

Independent reporting said the department’s own analysis projects about $4 billion per year in opportunity costs. That figure reflects lost work experience for students, lower productivity for firms that cannot backfill roles, and reduced international enrollment for colleges. Critics argue the fee functions like a tax detached from agency service costs, while supporters say it will deter abuse and reduce reliance on cheaper foreign labor in sensitive entry-level roles.

Legal debates are also forming. Commentators say DHS cites its general immigration authority to set program conditions, which could draw challenges. Because schools are the payers, lawsuits could have clearer standing. Separate filings by higher education groups seek to pause related actions, arguing ongoing harm to students and institutions. Any court ruling will turn on statutory authority, rulemaking process, and whether the fee reasonably serves the rule’s stated goals.

Why It Matters Beyond Immigration

This fight taps into a bigger clash over who controls America’s talent pipeline. Since 1947, rules have let foreign students get training tied to their field under executive-branch programs, not new acts of Congress. Supporters say this helps universities, employers, and science and technology goals. Opponents see a back door work program that undercuts wages. The new fee forces that argument into the open by attaching a headline price to each training slot.

What To Watch Next

When the proposal posts in the Federal Register, a public comment window will open for 30 or 60 days. Expect universities, employers, labor advocates, and student groups to weigh in. Watch for whether DHS refines the payment mechanics, scales fees by school size, or adjusts based on program risk. Also track court filings that challenge the legal basis. The outcome will shape who pays for early-career training and how much opportunity remains for students and U.S. firms.

Sources:

foxnews.com, dhs.gov, usnews.com, statnews.com, indiatoday.in, news.sbs.co.kr, case.edu, fragomen.com, justthenews.com, monitor.icef.com, immigration-analytics.com, nafsa.org, congress.gov