The US Department of Homeland Security has proposed a $70,000 fee for educational institutions for an international student's first participation in the OPT programme.
Schools would have to pay an additional $30,000 for every subsequent OPT renewal, while STEM students can currently use OPT for up to three years.
India was the largest source of international students in the US in 2024-25, with more than 3.63 lakh students, potentially putting Indian students among those most affected by the proposal.
The US on Wednesday proposed a USD 70,000 fee for international students seeking to work in the country after completing their studies, a move that could affect Indian youths seeking higher education in America.
The Department of Homeland Security proposed a rule requiring educational institutions to pay a USD 70,000 fee for any Optional Practical Training (OPT) the student participates in for the first time.
For every subsequent renewal, the school will have to pay a USD 30,000 fee.
The move comes amid strong sentiments among a section in the US against international students, who are accused of cornering American jobs.
India was the largest source of international students in the US, with over 3.63 lakh enrolling for different courses in the 2024-25 academic year.
According to a recent report by Common App, international students contributed USD 41.77 billion to local economies in the fall of 2025-26. The contribution is projected at USD 38.37 billion in 2026-27.
As per data cited by NAFSA and research firm JB International, the number of international students enrolled in US institutions fell from an estimated 11.69 lakh in the 2025-26 academic year to 10.57 lakh this year.
Why Indian Students Could Be Hit Hard
In a statement, DHS described the fee as a response to fraud and abuse of the visa programme, which it called a "pipeline for cheap foreign labour."
The public has 60 days to comment on the proposal before DHS can finalise it and put it into effect. The proposal also could face legal challenges from higher education groups or business associations that might delay it.
“Optional Practical Training was never meant to be a back door into the American workforce, a subsidy for cheap labour, or a prize for those who game the system,” a DHS spokesperson said.
“DHS is upskilling OPT to require foreign students to justify their worth to employers. American workers should not have to compete against a programme that has been turned into a pipeline for cheap foreign labour,” the spokesperson said.
DHS said the proposed rule was prompted by fraud and abuse identified by the Student and Exchange Visitor Program (SEVP).
As participation in OPT has grown, SEVP has encountered schools, designated school officials, employers and F-1 students allegedly exploiting existing regulations through schemes involving problematic worksites and "pay-to-stay" visa arrangements, the department said.
