A Steep Price for Practical Training: DHS Proposes $70,000 and $30,000 Fees for F-1 Optional Practical Training
For decades, Optional Practical Training (OPT) has given F-1 students a path to hands-on work experience and has given employers a key pipeline for early-career talent. That pipeline may soon run dry. On October 7, 2026, the United States Department of Homeland Security (DHS) announced a proposed rule that would require Student and Exchange Visitor Program (SEVP)-certified schools to pay a fee of $70,000 for each F-1 student recommended for initial OPT and $30,000 for any subsequent OPT approval. DHS states that the fees are intended to combat fraud, to strengthen the integrity of the immigration system, and to protect U.S. workers. The proposal is open for public comment, and affected employers may consider participating in the regulatory process.
What is OPT?
OPT is temporary employment authorization that is directly related to an F-1 student’s major or area of study, but that is not necessarily an integral part of the curriculum. Under the current regulations, OPT generally takes the following forms:
Pre-completion OPT, which may take place before the student completes the program of study (limited to 20 hours per week while school is in session);
Post-completion OPT, which generally provides an initial 12-month period of work authorization after the student completes the program of study; and
The STEM OPT extension, which provides an additional 24 months for students with qualifying science, technology, engineering, and mathematics (STEM) degrees.
Currently, schools pay no program fee to recommend a student for OPT.
What would change?
The proposed rule would impose a significant financial obligation on schools for every student they recommend for OPT. Key features include:
A $70,000 fee for each F-1 student’s initial OPT;
A $30,000 fee for any subsequent OPT;
Payment before the DSO may enter the OPT recommendation in SEVIS, meaning no student could be recommended unless the school has paid the applicable fee; and
A refund process allowing schools to seek a refund if the student does not receive an OPT employment authorization document.
Who would feel the impact?
The proposal would apply to all types of OPT and to every SEVP-certified school. DHS considered, but did not propose, an exemption for small institutions. Although the fee would be paid by schools, DHS expressly acknowledges that schools may pass the cost on to F-1 students, to all students, or to employers. As a result, employers that recruit or currently employ OPT and STEM OPT workers should expect to feel the impact directly. The proposal does not address OPT’s sister program, Curricular Practical Training (CPT), although DHS has stated it will continue to monitor that program.
Why is DHS proposing this change?
DHS bases the proposal on the following grounds:
Combatting fraud and abuse, citing a recent investigation that identified more than 10,000 F-1 students on OPT working for highly suspect employers, including shell companies and nonexistent worksites;
Protecting American workers, citing concerns that OPT is used to circumvent the H-1B cap and fees, and noting that 165,524 students participated in STEM OPT in 2024;
Program growth outpacing oversight, with 194,554 students reporting OPT employment in 2024, compared to 160,627 in 2023; and
Speed and efficiency, as DHS views a fee set at a level comparable to H-1B fees as a faster and less burdensome deterrent than alternatives such as expanded site visits or reporting requirements.
What does this mean for employers, schools, and students?
DHS has stated that it may shut down the OPT program entirely without these fees. If DHS finalizes the rule, stakeholders should prepare for:
Schools becoming far more selective in recommending students for OPT;
Costs passed on to students or sponsoring employers;
A smaller pool of OPT candidates and a narrower pipeline for long-term visa or green card sponsorship opportunities;
Greater budgetary and recruiting pressure for employers that rely on and invest in early-career foreign talent; and
Less certainty for students planning post-graduation employment in the United States.
The proposal is not yet in effect, and thus the current OPT rules continue to apply presently. In the meantime, employers should take the following actions:
Identify current and prospective employees on OPT or STEM OPT and map their upcoming employment authorization dates, keeping in mind recently increased processing times;
Evaluate whether to accelerate sponsorship plans for key OPT and STEM OPT workers;
Engage with university partners about how they plan to respond to the proposed fees;
Revisit budgets and campus recruiting strategies, including how any passed-on costs would be handled; and
Monitor any developments, including potential litigation.
Consider Adding to the Process: Submit a Comment
The comment period gives employers, schools, and students an opportunity to shape the final rule. DHS will review the comments before finalizing the proposal, and thoughtful submissions can make a real difference. Comments are due by November 9, 2026.
Pierson Ferdinand would welcome the chance to help you prepare and submit a comment that reflects your experience, concerns, and insights. Please reach out to us soon so that we have ample time to craft a strong submission on your behalf.
Partner Giovanni Antonucci Di Cesare (giovanni.antonucci@pierferd.com) and Junior Partner Allison Bustin (allison.bustin@pierferd.com) are available to counsel and to address any immigration matters, including the preparation and submission of comments on this proposed rule.
This publication and/or any linked publications herein do not constitute legal, accounting, or other professional advice or opinions on specific facts or matters and, accordingly, the author(s) and PierFerd assume no liability whatsoever in connection with its use. Pursuant to applicable rules of professional conduct, this publication may constitute Attorney Advertising. © 2026 Pierson Ferdinand LLP.
