Published October 7, 2026
The Department of Homeland Security (DHS) announced a proposed rule on October 7, 2026, that would impose substantial new fees on F-1 students seeking Optional Practical Training (OPT).
The proposed fee would be:
- $70,000 for initial OPT; and
- $30,000 for any subsequent OPT, including the 24-month STEM OPT extension.
The proposal is not final. The fees are not currently in effect, and schools should not pay them unless DHS issues a final rule with an effective date and payment instructions. The public-comment period is scheduled to run from October 8 through November 9, 2026.
The proposal would significantly affect F-1 students, universities, employers, and organizations that rely on international graduates as part of their workforce. It could also alter planning for the H-1B visa 2026 cycle and other work visa options for foreign employees.
What the DHS proposal would require
Under the proposed mechanism, an SEVP-certified school would have to pay the applicable fee before the school’s designated school official (DSO) recommends the student for OPT in SEVIS.
The payment would also have to occur before the student files an application for employment authorization with U.S. Citizenship and Immigration Services (USCIS).
DHS proposes that USCIS would not grant employment authorization if the school has not paid the required fee.
The proposed fee would not be tied to a particular employer. It would apply whenever an SEVP-certified school recommends an F-1 student for OPT, including:
- Pre-completion OPT;
- Post-completion OPT;
- Initial OPT at an eligible education level; and
- A subsequent period of OPT, including the 24-month STEM OPT extension.
The fees would be deposited in the U.S. Treasury.
How OPT currently works
The governing regulation, 8 C.F.R. § 214.2(f)(10), permits qualifying F-1 students to obtain practical training directly related to their major area of study.
Generally, an eligible student may receive up to 12 months of OPT at each education level. A student with a qualifying STEM degree may be eligible for an additional 24-month STEM OPT extension.
The current process generally requires the student to:
- Request an OPT recommendation from the DSO.
- Receive an updated Form I-20 showing the recommendation.
- File Form I-765 with USCIS for employment authorization.
- Wait for USCIS approval and issuance of the Employment Authorization Document (EAD).
- Begin employment only after the authorization becomes effective.
The proposed rule would add a major financial prerequisite before the DSO recommendation occurs. It would place the payment obligation on the school rather than on an identified employer.
Students and employers should not assume that a company could avoid the fee by changing employers. The proposal applies to the school’s OPT recommendation and is not limited to a particular sponsoring employer.
DHS rationale for the proposed fees
DHS states that SEVP has identified fraud and abuse in the OPT system. The agency specifically references problematic worksites and “pay-to-stay” visa schemes.
DHS asserts that the proposed fees would encourage schools to apply greater oversight and selectivity before recommending students for OPT. The agency also states that the rule would protect U.S. workers and address concerns regarding the use of OPT as a low-cost labor source.
The proposed fees would therefore operate as more than a routine administrative charge. They would create a significant financial consequence for schools that recommend students for practical training.
The public may submit comments beginning October 8. Comments are due by November 9, 2026. DHS has also identified a separate 60-day comment period under the Paperwork Reduction Act.
The November 9 deadline is a comment deadline. It is not the date the proposed fees automatically become payable.
Practical consequences for F-1 students
If finalized as proposed, the fee could make OPT economically unworkable for many students and employers.
A $70,000 fee for an initial OPT authorization could exceed the annual salary of some entry-level positions. A later $30,000 fee for STEM OPT could create an additional financial barrier before a student has reached a long-term immigration pathway.
Potential consequences include:
- Universities declining to recommend certain students for OPT.
- Increased financial screening before schools issue recommendations.
- Employers becoming less willing to recruit students who require OPT.
- Students losing access to the usual transition from F-1 study to professional employment.
- Greater pressure to pursue direct H-1B sponsorship or another employment-based option.
- Reduced availability of STEM OPT as a bridge to longer-term employment sponsorship.
- Delays while schools determine who will pay, authorize, and document the fee.
Students with pending or planned OPT should consult an immigration attorney before filing. Counsel should review:
- The student’s current F-1 status.
- The requested OPT type.
- The student’s program completion date.
- The DSO recommendation timeline.
- The anticipated filing date for Form I-765.
- Whether STEM OPT may be relevant.
- Potential H-1B, O-1, L-1, TN, or other alternatives.
The proposal does not eliminate current OPT eligibility. It would change the financial and administrative conditions for obtaining authorization if DHS adopts the rule.
Consequences for universities and DSOs
Universities should begin assessing the proposal even though it is not final.
An SEVP-certified school should evaluate:
- Whether the school would be responsible for advancing or paying the fee.
- Whether the fee could be recovered from students under applicable institutional policies.
- Whether the school has authority to limit recommendations based on financial or compliance considerations.
- How the school would document payment in connection with the SEVIS recommendation.
- Whether existing OPT procedures would need revision.
- How the school would communicate the proposal without treating it as final.
- Whether the institution will submit a public comment by November 9.
The school’s responsibility would arise before the DSO recommendation. This timing makes internal coordination important. Admissions, international student services, general counsel, finance, and academic departments may all need to participate in the review.
Universities should also distinguish between a proposed rule and an enforceable regulation. They should not collect or represent that the fee is currently required unless DHS issues binding instructions.
Consequences for employers and HR departments
Employers that rely on OPT and STEM OPT pipelines should reassess recruiting assumptions immediately.
The proposed fee is not an employer-specific fee. However, it could still increase employer costs indirectly. A school may decline to recommend a student, seek reimbursement, or require additional documentation before making the recommendation.
Employers should review:
- Candidate start dates.
- OPT and STEM OPT expiration dates.
- EAD approval timelines.
- Recruitment and onboarding schedules.
- The feasibility of hiring before authorization is issued.
- The potential cost of alternative sponsorship.
- Whether a candidate may qualify for another employment-based classification.
Employers should not allow a student to begin work before the student has valid employment authorization. Unauthorized employment creates immigration and Form I-9 compliance risks.
A company’s business immigration strategy should account for both immigration eligibility and workforce timing. HR teams should coordinate with immigration counsel before promising a start date or relying on a future OPT extension.
OPT may shift hiring toward H-1B and other work visas
If DHS finalizes the proposed fees, employers may shift recruitment away from OPT-dependent hiring and toward direct sponsorship or alternative visa classifications.
Potential alternatives may include:
- H-1B: For qualifying specialty occupations, subject to eligibility, annual caps, selection procedures, and applicable fees.
- O-1: For individuals who can establish extraordinary ability in the sciences, education, business, or other qualifying fields.
- L-1: For qualifying intracompany transferees who have the required relationship and employment history.
- TN: For eligible Canadian and Mexican professionals in qualifying occupations under the applicable treaty framework.
- Cap-exempt H-1B: For qualifying institutions of higher education, affiliated nonprofit entities, nonprofit research organizations, and governmental research organizations.
- Other employment-based classifications based on the worker’s qualifications and the employer’s structure.
The current H-1B visa 2026 environment also requires careful distinction between final rules, proposed rules, and blocked measures. The $100,000 H-1B fee implemented by proclamation was vacated by federal courts, including the Northern District of California on September 30, 2026, and is not currently enforceable.
DHS has separately proposed a $103,265 cap-subject H-1B fee. That proposal is distinct from the blocked $100,000 fee and should not be treated as currently payable unless DHS issues a final rule with an effective date.
The FY2027 H-1B wage-weighted selection process also remains relevant to employers evaluating long-term sponsorship.
Broader 2026 immigration context
The OPT proposal arrives amid significant litigation and rulemaking affecting foreign students and employees.
On September 14, 2026, a federal court postponed nationwide the DHS fixed-term admission rule for F, J, and I nonimmigrants in Presidents’ Alliance on Higher Education and Immigration v. DHS. Duration of status therefore remains the governing framework unless a later court order or agency action changes that position.
Employers should also review the current status of the blocked $100,000 H-1B fee and monitor the separate proposed H-1B fee rulemaking. These measures have different legal histories and should not be combined in filing instructions or workforce budgets.
What stakeholders should do before November 9
F-1 students
- Confirm your OPT eligibility and filing timeline with your DSO.
- Do not assume the proposed fee is currently due.
- Consult immigration counsel before filing or changing your employment plan.
- Evaluate whether H-1B or another work visa may be available.
- Preserve copies of your Form I-20, employment records, and USCIS filings.
Universities
- Assess the proposed payment obligation and internal approval process.
- Review DSO and SEVIS procedures.
- Coordinate with finance, international student services, and counsel.
- Consider submitting a public comment before November 9.
- Do not implement the fee before a final rule becomes effective.
Employers
- Reassess OPT and STEM OPT recruiting timelines.
- Identify employees who may need sponsorship after OPT.
- Review H-1B, O-1, L-1, TN, and cap-exempt H-1B alternatives.
- Update workforce budgets based on proposed and enforceable fees separately.
- Confirm employment authorization before onboarding any F-1 student.
Consult Blasingame Law LLC
The DHS proposal could materially affect the relationship between F-1 student employment, university compliance, and employer workforce planning. It is not final, but stakeholders should act before the November 9 comment deadline.
Blasingame Law LLC provides personalized guidance to universities, employers, HR departments, and foreign nationals regarding OPT, STEM OPT, H-1B petitions, work visas for foreign employees, I-9 compliance, and broader business immigration strategy.
Contact Blasingame Law LLC or schedule a consultation to evaluate your options. A business immigration attorney should review the specific facts before a student files, a school changes its OPT procedures, or an employer restructures its hiring plan.
This article provides general information current as of October 7, 2026. It does not constitute legal advice. Immigration rules, proposed regulations, court orders, and agency instructions may change.
