The US Department of Homeland Security (DHS) has proposed charging universities and colleges $70,000 for each international student they recommend for Optional Practical Training (OPT), the programme that lets F-1 students work in the US after their studies. A further $30,000 would be charged for any subsequent period of OPT, including the STEM OPT extension. The proposed rule was released on 7 October 2026 and scheduled for publication in the Federal Register on 8 October.

The fee would be paid by the US institution certified under the Student and Exchange Visitor Program before its designated school official enters the OPT recommendation in the student record system. The proposal says schools may pass the cost on to students or to employers.

What the proposal says

  • Issuing agency: US Immigration and Customs Enforcement, part of DHS (RIN 1653-AB01; docket ICEB-2026-0100).
  • Fees: $70,000 for a student’s first period of OPT, before or after completion of studies; $30,000 for each subsequent period.
  • Scale: DHS says 194,554 F-1 students received OPT work authorisation and reported working in calendar year 2024, up from 160,627 in 2023, and 165,524 were on STEM OPT by 2024. About 6,186 schools were certified as of June 2026.
  • Money: fees would go to the US Treasury as miscellaneous receipts, not to ICE.
  • Timing: comments are due 30 days after publication. A final rule would take effect 60 days after its own publication and apply to recommendations dated on or after that date.

DHS believes that this fee is necessary to place the United States’ interests first and protect American workers.

US Department of Homeland Security, Optional Practical Training Fees, notice of proposed rulemaking

DHS argues that practical training has become a route for students to avoid the annual cap on H-1B work visas, and cites fraud cases. It says that without the fee it may shut the programme down entirely. Sector bodies including NAFSA and the Presidents’ Alliance on Higher Education and Immigration have criticised the proposal, and NAFSA said it would mobilise members to comment, The PIE News reported. The proposal does not estimate how many students would be deterred, and the document does not break OPT numbers down by nationality.

Why it matters in the UK, India and the Gulf

The proposal lands as other destinations also tighten. In the UK, sponsored study visa applications from main applicants fell 19% to 352,500 in the year to September 2026, according to Home Office figures published on 8 October. In India, Education Minister Pralhad Joshi told the FICCI Higher Education Summit in New Delhi on 9 October that India has a real opportunity to become a preferred education destination as several countries make it harder for foreign students, Business Standard reported. In the UAE, enrolments rose 15% in 2025-26 to more than 218,000, according to government figures reported by Times Higher Education on 6 October.

What it means

TED analysis:

  • For UK recruiters: post-study work is part of the US offer to international postgraduates, including those from India. If the fee is adopted and passed on, the UK Graduate route becomes relatively more attractive, even after its cut to 18 months for applications from January 2027.
  • For Gulf and Indian campuses: universities in the UAE, Saudi Arabia and India’s new foreign campuses can pitch lower total cost and fewer visa risks. Times Higher Education’s reporting attributes the UAE’s recent growth mainly to the expansion of diplomas, so diverted demand from the West is not yet visible in the data.
  • For US partners of Indian and Gulf institutions: joint programmes that end with a US year and OPT would need repricing. Partners should model the fee before the comment period closes.
  • What to watch: the final rule, legal challenges and whether US institutions absorb the fee or pass it to students or employers.