Trump Administration Proposes $100,000 in Fees for Universities Helping Foreign Graduates Work in U.S.

The Trump administration is proposing to charge universities $70,000 for each international student they recommend for U.S. work authorization, with another $30,000 for subsequent participation, under a new immigration regulation that could sharply increase the cost of hiring foreign graduates.

The Department of Homeland Security's proposal, published in the Federal Register on October 8, 2026, would impose the charges through the Optional Practical Training (OPT) program. Universities would be responsible for paying the federal government, although DHS acknowledges that institutions could pass the costs to students or employers.

Optional Practical Training allows international students with F-1 visas to work in jobs related to their studies for up to 12 months after graduation. Graduates in qualifying science, technology, engineering, and mathematics fields can receive an additional 24 months, allowing them to work for U.S. employers while pursuing longer-term options, including H-1B visas.

Students currently pay roughly $500 to U.S. Citizenship and Immigration Services to apply for work authorization. Universities recommend eligible students through the federal Student and Exchange Visitor Information System, or SEVIS. Under the proposed rule, institutions would have to pay the new fee before entering the OPT recommendation into that system.

DHS says the fees are intended to combat fraud and protect American workers, citing concerns that some international students have used OPT to work outside their approved fields or remain in the country without legitimate training opportunities. The department argues that charging universities for recommendations would give institutions a financial incentive to scrutinize students more closely.

The charges would apply to practical training before or after graduation. A student who receives an initial OPT recommendation and later qualifies for another, including a STEM extension, could trigger $100,000 in university fees across the two stages. Because the $30,000 charge would apply to each subsequent recommendation, additional qualifying periods could increase the total further.

DHS estimates that the fees could generate between $8.4 billion and $16.5 billion annually, with a central projection of $12.4 billion in payments from educational institutions to the federal government.

The department cites the Immigration and Nationality Act and the Homeland Security Act as legal authority for the proposed charges. The size and stated purpose of the fees could become issues in court if the regulation is finalized and challenged. Under the Administrative Procedure Act, judges can invalidate agency rules that exceed congressional authority, raising questions about whether the laws DHS cites permit fees intended to discourage participation rather than cover administrative expenses.

The Presidents' Alliance on Higher Education and Immigration criticized the proposal on October 7, warning that the fees could discourage international students from attending American universities and limit employers' access to graduates in research, health care and technology. The organization, which represents nearly 600 college and university leaders and institutions, also warned that declining international enrollment could place additional financial pressure on campuses.

The new OPT charges follow the administration's efforts to increase the cost of employment-based immigration, including a separate $100,000 fee on certain H-1B visa petitions that has faced federal court challenges.

Under the transition provisions, the new fees would generally apply to OPT recommendations made after the regulation takes effect. Students already authorized for practical training would remain subject to their existing approvals, while subsequent recommendations could trigger the new charges.

DHS is accepting public comments through November 9, 2026, and must consider those submissions before issuing a final regulation. If adopted under the proposed timetable, the fees would take effect 60 days after publication of the final rule.