DHS Proposes Significant New Fees for Optional Practical Training

DHS Proposes Significant New Fees for Optional Practical Training

The U.S. Department of Homeland Security (DHS) has proposed substantial new fees for foreign students participating in Optional Practical Training (OPT), including pre-completion OPT, post-completion OPT, and the 24-month STEM OPT extension. The rule would impose fees of $70,000 for initial OPT and $30,000 for each subsequent OPT recommendation, potentially significantly increasing the cost of employing international graduates and affecting workforce planning, hiring budgets, and immigration sponsorship strategies.

The proposed rule was published in the Federal Register on October 8, 2026. DHS has invited public comments on the proposal, with a general comment deadline of November 9, 2026. If finalized as proposed, the new fees would take effect 60 days after publication of the final rule. The effective date has not yet been determined, and the proposed fees are not currently in effect.

Key Provisions

DHS proposes the following fees for F-1 students seeking OPT authorization:

• $70,000 for initial OPT.
• $30,000 for each subsequent OPT recommendation, after the initial fee has been paid.

Importantly, these fees are not limited to the traditional sequence of 12 months of post-completion OPT followed by a 24-month STEM OPT extension. The proposal covers pre-completion OPT as well as post-completion OPT, including STEM OPT extensions. For example, a student who first participates in pre-completion OPT and later receives a recommendation for post-completion OPT could incur $100,000 in fees across those two recommendations. A student who proceeds directly to post-completion OPT would incur the initial $70,000 fee, with a subsequent $30,000 fee applying to a later STEM OPT extension.  The proposal excludes Curricular Practical Training (CPT).

Under the proposal, the SEVP-certified educational institution would be responsible for paying the applicable fee before its Designated School Official (DSO) recommends the student for OPT. The DSO would need to record payment in the Student and Exchange Visitor Information System (SEVIS) before the student could apply to U.S. Citizenship and Immigration Services (USCIS) for employment authorization.

Treatment of Current OPT Employees and Transition Period

The proposed transition framework would apply the fees prospectively to OPT recommendations dated on or after the effective date. Under the proposal:

• Employees already working under approved OPT: The proposal would not impose a new fee on an existing, previously approved period of OPT.
• Employees with OPT recommendations issued before the effective date: The proposed fee would not apply to an OPT recommendation made before the effective date, even if the employee’s application for employment authorization remains pending.
• Employees with prior OPT participation who seek a new DSO recommendation after the effective date: The $70,000 initial fee would apply to the first OPT recommendation on or after the effective date, even if the student participated in OPT before the rule took effect. Thus, if an employee is working under an earlier OPT authorization made prior to the effective date, a DSO recommendation for a STEM OPT extension made after the effective date would trigger a $70,000 fee.

Potential Impact on Employers

If finalized as proposed, the fees could materially affect employers that recruit international graduates, particularly in STEM and other specialized fields. Although the proposal assigns the payment obligation to the educational institution, the costs could have broader implications for employers’ international hiring strategies, recruiting budgets, and workforce planning.

Employers should consider assessing workforce exposure and identify current employees and anticipated hires who may rely on pre-completion OPT, post-completion OPT, or STEM OPT extensions.  Employers should also review upcoming authorization dates for incumbent F-1 populations to identify employees who may require a STEM OPT extension in 2027 and beyond.

Broader Changes Affecting F-1 Students

The proposed OPT fees arise amid broader efforts by DHS to tighten oversight of international student programs. In July 2026, DHS finalized a separate rule replacing duration of status admission for F-1 and J-1 students with fixed admission periods and new procedures for extension of status. That rule has been blocked pending litigation and is not currently in effect.

The OPT fee proposal is a separate rulemaking and is not currently effective. If the proposal is finalized, given the scale of the proposed fees and their potential impact on students, educational institutions, and employers, litigation is also anticipated.

Gibney will continue to monitor the rulemaking and provide updates as developments occur.

Violeta Petrova