Outlook Explains | A $100,000 Fee To Work In The US? Why Trump's New Proposal Could Hit Indian Students Hard

A new proposal reportedly being considered by the Trump administration could dramatically reshape the economics of studying in the United States. According to multiple media reports, the administration is weighing a $100,000 fee for international students who wish to remain in the US and work after graduation under the Optional Practical Training (OPT) programme.

If implemented, the proposal would represent one of the most significant changes to the post-study work pathway for foreign students in decades. The measure has not yet been formally announced or published as a regulation, but it reflects a broader push to tighten legal immigration and prioritise American workers. For Indian students—who form one of the largest international student communities in the US and rely heavily on OPT as a bridge to H-1B visas—the proposal could substantially increase the cost and uncertainty of pursuing higher education in America.

What is the proposed $100,000 fee?

The proposal under consideration would require international students graduating from American universities to pay—or have someone pay on their behalf—a $100,000 fee to obtain work authorisation under the Optional Practical Training (OPT) programme.

If implemented, the proposal would represent a dramatic increase in the cost of accessing post-study employment in the United States. Currently, students applying for OPT pay standard filing fees to the US Citizenship and Immigration Services (USCIS), which are a tiny fraction of the proposed amount.

The reported proposal follows a broader pattern of immigration tightening under the Trump administration. Over the past year, the administration has proposed stricter rules for H-1B visas, Green Cards, student visas and employment authorisation for dependants, signalling a policy shift towards reducing legal immigration pathways.

Importantly, the $100,000 OPT proposal has not been finalised. It remains under internal consideration and has not yet been issued as a formal regulation or policy.

What is OPT and why does it matter?

Optional Practical Training (OPT) is a programme that allows international students studying in the United States on F-1 student visas to work in jobs related to their field of study after completing their degree.

Under current rules, most eligible graduates may work for up to 12 months through OPT. Students graduating in eligible science, technology, engineering and mathematics (STEM) disciplines may qualify for an additional 24-month STEM OPT extension, allowing them to remain employed in the US for a total of 36 months.

Graduates often use the programme to gain professional experience while seeking employer sponsorship for an H-1B visa, the principal work visa for highly skilled foreign professionals.

Without OPT, many graduates would have only a short period after finishing their studies before being required to leave the United States. Consequently, the programme has become one of the biggest attractions of an American university education, particularly for students pursuing engineering, computer science, finance and other high-demand fields.

According to US government data cited by media reports, approximately 419,000 international graduates were working under OPT in 2024, illustrating the programme's importance to universities and employers alike.

Why could Indian students be among the worst affected?

Indian students are expected to be among the most affected because they rely on the US study-to-work pathway more than almost any other international student group.

A $100,000 fee could therefore fundamentally alter the financial calculations of studying in America. Many Indian families already spend tens of lakhs of rupees on tuition, accommodation and living expenses. Adding a six-figure US dollar charge to access post-study work could place the opportunity beyond the reach of many middle-class students.

If companies become responsible for paying the fee, they may reduce hiring of international graduates or reserve sponsorship for only the most exceptional candidates.

The impact would extend beyond students. American universities—which rely heavily on international enrolments—could also face declining admissions if students conclude that the return on investment no longer justifies the cost.

Is the proposal already law?

No. Despite widespread discussion, the proposal has not become law or official policy.

Media reports indicate that the Department of Homeland Security is considering the measure as part of a broader package of immigration reforms, but it has not yet been formally announced, published in the Federal Register or implemented.

Legal challenges are also likely. Recent immigration measures imposing a $100,000 fee on certain new H-1B visa petitions have already been challenged successfully in US federal courts, with judges finding that the executive branch exceeded its authority by effectively imposing a tax without congressional authorisation.

How could it change the US study-to-work route?

For decades, many international students have followed a relatively predictable pathway: obtain an F-1 student visa, complete a degree at a US university, work through OPT, transition to an H-1B visa, and eventually pursue permanent residency.

The proposed fee could disrupt this pathway at its most important stage. If OPT becomes prohibitively expensive, fewer students may remain in the US after graduation.

Universities could also experience lower enrolment while technology companies, engineering firms and research institutions may likewise encounter greater difficulty recruiting highly skilled graduates from American universities.

Which countries could benefit if students look elsewhere?

If the United States becomes significantly more expensive for international students, other destinations may become increasingly attractive. Canada already offers relatively straightforward post-graduation work permits and clearer pathways to permanent residency.

The United Kingdom reintroduced its Graduate Route, allowing eligible international graduates to remain and work after completing their studies.

Australia continues to offer post-study work opportunities for graduates meeting visa requirements, while Germany has expanded opportunities for international students through lower tuition costs, strong engineering programmes and relatively accessible job-search visas. Several European countries are also actively competing for highly skilled international graduates by simplifying residence rules and expanding English-language degree programmes.

Whether the reported US proposal ultimately becomes policy remains uncertain. Nevertheless, its emergence signals a broader shift in American immigration policy. For Indian students, whose educational aspirations have long been closely linked to post-study employment opportunities in the United States, the proposal represents more than a potential increase in costs—it raises fundamental questions about whether the traditional US study-to-work pathway will remain as accessible in the years ahead.