Nearly 600 US Colleges Urge DHS to Scrap $70,000 OPT Fee, Warn of Massive Talent Drain to UK & Canada

A proposed US immigration rule that would impose a $70,000 fee on universities for recommending an international student for initial Optional Practical Training (OPT), alongside an additional $30,000 charge for subsequent recommendations, could severely deter foreign enrollment and also destroy America’s standing as a premier global education hub, higher education leaders have warned. In formal public comments submitted to the Department of Homeland Security (DHS), the President’s Alliance on Higher Education and Immigration, a coalition representing nearly 600 US colleges and universities, strongly opposed the proposal published on October 8, 2026, requesting the administration to withdraw the rule in its entirety. 

Dismantling Practical Training & Hurting Domestic Campuses

Under the proposed framework, institutions would have to pay heavy fees upfront before recommending F-1 students for post-graduation work authorisation. Universities would either have to absorb tens of millions of dollars in new costs or pass the charges on to students or prospective employers, effectively turning practical work experience into a barrier based on financial means.

• Miriam Feldblum, President and CEO of the President’s Alliance, has also warned that the heavy charges levied would put the practical training out of reach for most campuses and students, effectively dismantling the OPT program. 
• A single university enrolling roughly 6000 international students has estimated that the rule would cost it over $60 million annually, exceeding 1% of its entire operating budget.
• The coalition noted that sharp drops in international tuition revenue would make it harder for colleges to fund and sustain academic courses and research programs that directly benefit domestic American students.

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Survey Data Points to Steep Enrollment Drop

The submission has also cited survey findings from 734 current and former international students, revealing deep sensitivity to post-study work restrictions:-

• 69% of surveyed students have stated that they would probably or definitely not have enrolled in a US institution if the proposed fees had been in place.
• Among STEM students, the deterrent effect rose to 70%.

The Alliance also mentioned that international students contributed 442.9 billion to the US economy and supported over 3.5 lakh (350,000) jobs during the 2024-25 academic year. Restricting OPT threatens university research pipelines and pushes skilled global talent toward competing countries such as Canada, the UK, Australia, and Germany. 

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Important Takeaways for Study Abroad Aspirants

With the ongoing speculation, some of the important takeaways for the study abroad aspirants are as follows:-

• The $70,000 fee is currently a proposed rule undergoing mandatory public comment review by DHS and is not yet in effect; it is also widely expected to face legal challenges in federal courts once finalised.
• Prospective applicants, especially Indian students who are targeting STEM programs, should closely track final DHS rulemaking alongside alternative destinations with predictable post-graduation work visas before committing to high tuition outlays. 

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