$70,000. That is what the Department of Homeland Security now proposes to charge the first time an F-1 student is recommended for Optional Practical Training (OPT). Every OPT recommendation after that, including the STEM OPT extension, would cost $30,000. The student’s school pays, not USCIS filing, and no OPT work permit could be granted until it does. This is a proposed rule, not a final one. Here is what it says, who it reaches, and what students, schools, and employers should do now.
What DHS Has Proposed
The notice is called “Optional Practical Training Fees” (FR Doc. 2026-20660, DHS Docket No. ICEB-2026-0100, RIN 1653-AB01). It went on public inspection at the Federal Register on October 7, 2026, and is scheduled for publication on October 8, 2026. The issuing agency is U.S. Immigration and Customs Enforcement (ICE), which runs the Student and Exchange Visitor Program (SEVP).
It would amend 8 CFR 214.2(f)(11) and 8 CFR 214.13. It creates two fees, and the SEVP-certified school pays both:
- $70,000 initial OPT fee — one time per F-1 student, the first time the student is recommended for any type of OPT, pre-completion or post-completion (proposed 8 CFR 214.13(i)(1)).
- $30,000 subsequent OPT fee — for each later OPT recommendation for a student who has already done OPT and for whom the $70,000 was paid. That means another round of pre-completion OPT, post-completion OPT, or the 24-month STEM OPT extension (proposed 8 CFR 214.13(i)(2)).
How OPT Works Today
OPT is practical training directly related to an F-1 student’s major area of study (8 CFR 214.2(f)(10)(ii)). Students can use it before finishing the program (pre-completion OPT) or after (post-completion OPT), generally up to 12 months at each educational level. A qualifying STEM degree opens the door to a 24-month STEM OPT extension, which brings a Form I-983 training plan and an E-Verify employer.
It all starts at the school. A Designated School Official (DSO) recommends the student for OPT in SEVIS and issues a new Form I-20. The student then files Form I-765, Application for Employment Authorization, with USCIS and pays the I-765 filing fee. No work until the Employment Authorization Document (EAD) arrives.
How the New Fee Would Work
The fee slots in at step one.
The school must pay before the DSO enters the OPT recommendation in SEVIS. The DSO confirms payment, records it in SEVIS, and hands the student a signed Form I-20 showing both the recommendation and confirmation that the fee was paid (proposed 8 CFR 214.2(f)(11)(i)–(ii)).
USCIS, in turn, could not grant OPT employment authorization if the DSO recommended before the school paid, or if the school never paid at all (proposed 8 CFR 214.2(f)(11)(iii)). And the USCIS I-765 filing fee does not go away. The OPT fee sits on top of it.
Here is the part that surprises people. The fee follows the school’s recommendation, not the employer. Switching employers does not trigger it; a new recommendation does. DHS’s own example: a student recommended for pre-completion OPT who later needs a new recommendation for post-completion OPT costs the school $70,000 for the first and $30,000 for the second — same employer or not.
How the student got into F-1 status does not matter either. Admitted directly or changed status inside the United States, the fee applies. Same answer whether a required extension of stay came through USCIS or through travel and readmission by CBP.
Who Would Actually Pay
On paper, the SEVP-certified institution. In practice? DHS says openly that schools may pass the cost on to F-1 students, to all students, or to employers. The rule does not restrict how schools raise the money, as long as they follow other laws, including foreign gift and contract reporting under 20 U.S.C. 1011f. DHS also points out that DSOs are not required to recommend anyone for OPT, and can decline to pay for a student they do not see as a strong candidate.
So the bill could land on the student, the employer, or the school, depending on each institution’s policy. Expect schools to get much more selective about OPT recommendations. That is the stated goal.
Refunds Are Limited
A school can ask for a refund only if the student has not been issued the OPT EAD (or, for the subsequent fee, the OPT extension) tied to that payment. The DSO has to remove the OPT recommendation from SEVIS first. SEVP decides each request case by case, at its discretion. Once the EAD is issued, the fee is not refundable under any circumstances. Refund decisions cannot be administratively appealed (proposed 8 CFR 214.13(i)(1)–(2)).
Why DHS Says It Is Doing This
Three reasons: fighting fraud in OPT, protecting U.S. workers, and stopping OPT from being used as a way around the H-1B program. The preamble describes OPT schemes involving institutions, DSOs, employers, and students, and says DHS has spent significant resources investigating them. A fee, DHS argues, would push schools toward greater oversight and selectivity and cut down on what it calls “visa mill” activity.
Why that amount? DHS says it picked an initial fee “comparable to” the H-1B fee set by Proclamation 10973 (September 2025), so OPT cannot serve as a way to dodge H-1B fees. The first fee is the larger one because, in DHS’s view, a student applying for OPT for the first time may not have been vetted since the original visa application.
DHS did look at other options. Extending STEM OPT safeguards — site visits, training plans — to all OPT was rejected as slower and more resource-heavy than a fee. A small-school exemption was rejected too; DHS estimates 56 percent of regulated SEVP-certified institutions are small entities. And DHS says that without these fees, it may shut down the program entirely.
The money goes to the U.S. Treasury as a miscellaneous receipt under 31 U.S.C. 3302. ICE does not keep it.
The Legal Basis DHS Relies On
The core authority is INA 214(a), 8 U.S.C. 1184(a), which lets the Secretary set the “time and conditions” of nonimmigrant admission. DHS pairs it with INA 101(a)(15)(F), 8 U.S.C. 1101(a)(15)(F), which defines the F-1 student classification, plus its general authority under INA 103(a), 8 U.S.C. 1103(a), and section 102 of the Homeland Security Act. It leans on Washington Alliance of Technology Workers v. DHS, 50 F.4th 164 (D.C. Cir. 2022), which upheld OPT as a valid use of the time-and-conditions authority.
The history, as the preamble tells it: practical training has been in the regulations since 1947. OPT took its modern form in 1992. DHS added a 17-month STEM extension in 2008, stretched it to 24 months in 2016, and pushed cap-gap coverage to April 1 in 2024. The proposed regulatory text itself touches only the OPT recommendation and fee provisions in 8 CFR 214.2(f)(11) and 214.13.
How Many People This Affects
2,478 schools had students in OPT between 2022 and 2024, by DHS’s count. Calendar year 2024 saw 194,554 OPT authorizations and 95,384 STEM OPT authorizations — the highest figures in DHS’s data. DHS also says about 20 percent of the 1.4 million F-1 students in higher education took part in OPT in 2024. How far participation would fall under the fee, DHS admits it cannot confidently predict.
When It Would Take Effect
Not today. The proposal has to go through public comment and a final rule. DHS proposes that the final rule take effect 60 days after publication.
The $70,000 fee would then apply to any DSO recommendation for OPT dated on or after that effective date (proposed 8 CFR 214.13(i)(3)). No fee for a student already engaged in approved OPT, already approved for OPT before the effective date, or holding a DSO recommendation from before the effective date. But if that same student makes a subsequent OPT request on or after the effective date, DHS says the fee provisions will apply.
One gap worth flagging. As drafted, the $30,000 subsequent fee applies to students for whom the $70,000 was already paid. What about a student whose first OPT predates the rule — so no $70,000 was ever triggered — and who later seeks STEM OPT? The regulatory text does not clearly say. The details are still being clarified, and it is a fair point to raise in comments.
DHS is also asking for comment on an alternative: charging the $70,000 initial fee again each time a student moves up an educational level, for example once for bachelor’s-level OPT and again for master’s-level OPT.
The Duration of Status Rule Still Applies
This proposal lands on top of the “duration of status” final rule DHS issued on July 17, 2026 (91 FR 44976), which replaced open-ended F-1 admission with a fixed admission period. Under that rule, some students seeking OPT will also have to file Form I-539 for an extension of stay, or leave and seek readmission through CBP. The OPT fee adds to those requirements. It does not replace them.
What You Should Do Now
F-1 students planning OPT: Talk to your DSO early about your school’s timeline and any fee policy it is working on. The fee turns on the date of the DSO recommendation, so timing may matter once a final rule is out. Do not assume your school will pay.
Students on OPT now who expect to seek STEM OPT: Keep the gap described above in mind, and watch how the final rule handles subsequent recommendations.
Employers who hire OPT and STEM OPT workers: Count how many current and planned hires rely on OPT. Ask whether H-1B or other long-term sponsorship should start earlier. Schools may ask you to share the cost.
Schools: Start budgeting and policy planning now, including how fee payments will be documented for foreign gift and contract reporting.
Everyone affected: Consider commenting. Comments are due 30 days after Federal Register publication and must go through regulations.gov under Docket No. ICEB-2026-0100. DHS says comments sent by email or letter will not be considered. Comments on the information collection get a 60-day window.
The Bottom Line
DHS says plainly that it expects the fee to produce a smaller pool of OPT participants. It is still a proposal, and the final version may differ. If you are a student weighing OPT, or an employer counting on OPT hires, plan now. Our attorneys can help you think through the options for your situation.
This post is attorney advertising and is provided for general information only. It is not legal advice and does not create an attorney-client relationship. Immigration law changes rapidly; consult a qualified immigration attorney about your specific situation.
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