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The US Department of Homeland Security has proposed a steep new fee for colleges using Optional Practical Training. The move could raise costs for Indian students and intensify scrutiny of post-study work in America.
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Washington,Oct 7, 2026 23:28 IST
The US Department of Homeland Security has proposed a USD 70,000 fee for international students seeking to work in the country after finishing their studies under the Optional Practical Training programme, a move that could affect Indian students planning higher education in America.
Under the proposal, educational institutions would have to pay USD 70,000 when a student joins OPT for the first time and USD 30,000 for each subsequent renewal. The proposal will be open for public comment for 60 days before it can be finalised, and it could also face legal challenges from higher education groups or business associations.
Under OPT, international students can work in the US for one year after completing their studies, provided the job is related to their field of study. Students in science, technology, engineering and mathematics courses can work for three years.
The move comes amid strong sentiment among a section in the US against international students, who are accused of taking American jobs. India was the largest source of international students in the US, with more than 3.63 lakh enrolled in the 2024-25 academic year.
According to a recent Common App report, international students contributed USD 41.77 billion to local economies in the fall of 2025-26. That contribution is projected at USD 38.37 billion in 2026-27. Data cited by NAFSA and research firm JB showed that international student enrolment in US institutions fell from an estimated 11.69 lakh in 2025-26 to 10.57 lakh this year.
In a statement, DHS said the fee had been proposed in response to fraud and abuse in the visa programme, which it described as a "pipeline for cheap foreign labour". A DHS spokesperson said, "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." The spokesperson added, "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."
DHS said the proposed rule was prompted by fraud and abuse identified by the Student and Exchange Visitor Program. It said that as participation in OPT has grown, the programme 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.
In sum, the proposal would place a new cost on institutions sponsoring OPT participants, even as Indian students remain the largest international group in the US and the programme stays under scrutiny over claims of misuse.
With PTI Inputs
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