10/07/2026
New Proposed OPT Fee-DHS has announced a proposed rule requiring schools to pay $70,000 for a student’s initial Optional Practical Training (OPT) and $30,000 for subsequent OPT before recommending the student for work authorization.
This is a proposal and not a requirement currently in effect.
Our position: We believe the proposal is clearly unlawful as described and highly vulnerable to legal challenge. It looks more like political theater than a carefully developed policy capable of surviving legal scrutiny.
The central issue is straightforward: Is this a legitimate administrative fee, or an unauthorized tax designed to price international graduates out of the workforce?
DHS’s announcement expressly identifies reducing foreign labor and protecting American jobs as objectives. It provides no cost-based explanation for the extraordinary amounts being proposed.
That distinction has already mattered in litigation over the $100,000 H-1B payment requirement. Federal courts have ruled against that policy on grounds including unauthorized taxation and administrative-law violations. Those rulings do not automatically decide the legality of an OPT fee, but they provide a significant roadmap for challenging it.
In our view, the OPT proposal may be even more vulnerable on the fee-versus-tax issue. Schools would bear an enormous charge even when they are not employing the students. The proposal targets students already studying in the United States, making the entry-restriction rationale advanced in the H-1B context even less persuasive. And the stated objective appears to be discouraging participation and not recovering administrative costs.
Notice-and-comment rulemaking cannot create authority Congress never granted.
The public comment period runs from October 8 through November 9. After that, DHS must review comments and determine whether to issue a final rule. The broader process could take several months, potentially 6–12 months or longer.
If DHS finalizes this proposal, we expect prompt lawsuits and immediate requests for temporary restraining orders or preliminary injunctions to prevent implementation.
We cannot know the administration’s internal intentions. But the announcement gives little indication that DHS has meaningfully addressed the legal vulnerabilities exposed by the H-1B litigation as well as the 75 country IVP ban pause.
For students and employers, the practical response is proactive planning and not relying on courts to preserve every existing pathway.
For eligible individuals, starting the employment-based green card process sooner can create a path toward work authorization that does not depend on OPT or selection in the H-1B lottery. Our team helps international professionals and employers evaluate green card eligibility, filing timelines, and work-authorization strategies. Contact us to build a plan based on your circumstances and how best to navigate these current times.