States Challenge $70,000 Fee on OPT Recommendations
Universities recommending international graduates for OPT and the employers who hire them would bear costs under the proposed rule.
Updated on Nov. 11, 2026 in Internships
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A California-led coalition of state attorneys general filed formal objections with the Department of Homeland Security on Monday against a proposed rule that would require colleges and universities to pay $70,000 when they first recommend a student for Optional Practical Training (OPT), plus $30,000 for each subsequent recommendation. The proposal, published October 8 and not yet in effect, would affect international students on F-1 visas who work in the U.S. after graduation.
Why it matters
The coalition argues DHS lacks congressional authority to impose the charge, describing it as a tax disguised as a fee, and says the rule violates the Immigration and Nationality Act and the Administrative Procedure Act. Because institutions would pay the fees up front and could seek reimbursement from students or employers, the cost shifts directly into hiring and tuition decisions.
The proposed fees would total up to $100,000 per student, against a 2024-25 base of 294,000 international students in OPT, with an estimated $12.9 billion annual cost to institutions at current participation. The California coalition also cited $6.3 billion in state contribution from international students and 52,000 supported California jobs in the same year.
The players
Department of Homeland Security
A federal agency that sets and enforces immigration-related rules, including the OPT program that governs work authorization for international graduates.
The details
Under the proposal, colleges and universities would pay DHS when they recommend a student for OPT, with $70,000 due on the first recommendation and $30,000 on later ones, including an extension for eligible STEM graduates. Institutions could then seek reimbursement from students or employers, which would move the expense onto the people hiring or training recent graduates. The coalition warned that the fees could push some universities to stop recommending students for the program, and could lead to falling international enrollment and reduced tuition income.
Timeline
October 8: Proposed rule published; not yet in effect
2024-25 academic year: 294,000 international students participated in OPT nationwide
Monday: Coalition submitted formal objections to DHS
Market Landscape
The coalition's challenge is framed as a question of whether DHS can impose a charge that functions as a tax without explicit authority from Congress under the Immigration and Nationality Act. The dispute places the OPT program, which employs hundreds of thousands of international graduates, at the center of a federal-state conflict over cost and statutory power.
Employers that hire recent international graduates should track whether institutions pass the fees through as reimbursement requests, since that would raise the effective cost of hiring. Universities and employers in the program should monitor the comment period and any final rule that sets the fee in effect.
The takeaway
Employers hiring through OPT should model a possible reimbursement request from their graduate hires and watch whether the rule is finalized. Track the proposal's comment period and any change in its status with the Department of Homeland Security, and route any decision about hiring or cost-sharing to qualified immigration counsel.
Further reading
For context on how these work authorizations are structured, see the Internships section.
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Should the federal government require universities to pay fees for international students' work training?
