Colleges Stunned: $70K OPT Gatekeeper Fee

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The Department of Homeland Security proposed a $70,000 fee on foreign-student work permits to choke off fraud and protect American jobs.

Story Highlights

  • DHS proposed $70,000 for initial Optional Practical Training and $30,000 for later OPT recommendations.
  • DHS says the goal is to fight fraud and stop cheap-labor pipelines that undercut U.S. workers.
  • Immigration and Customs Enforcement reported more than 10,000 potential OPT fraud links this year.
  • College groups warn the fee could reduce foreign enrollment and strain schools.

DHS Sets A Marker: Big Fees To Halt OPT Abuse

The Department of Homeland Security proposed a rule that would charge $70,000 for a school’s first recommendation for a foreign student to work under Optional Practical Training, and $30,000 for any later recommendations. The agency said the plan is meant “to combat fraud, strengthen the integrity of the immigration system, and protect U.S. workers.” The figures and reasoning appear in the official Federal Register notice, which anchors the debate in black and white text from the government.

The Department of Homeland Security public release and related coverage describe Optional Practical Training as a channel that companies can use for lower-cost labor. The plan would require Student and Exchange Visitor Program schools to pay the fee before recommending an F-1 student for work, shifting the burden away from the student. The Department of Homeland Security says this structure targets the recommendation pipeline where fraud and weak oversight often begin.

Fraud Findings Raise Pressure To Act

Immigration and Customs Enforcement leadership reported more than 10,000 potential fraud cases tied to Optional Practical Training, including “suspect employers.” That figure, shared with national outlets in May, shows a large-scale risk that affects visas, wage fairness, and national security screening. These findings help explain why the Department of Homeland Security is moving hard on the program’s weak points, and why wider enforcement is now on the table.

News reports and agency briefings have highlighted “phantom employees,” shell firms, and empty worksites showing up in Optional Practical Training checks. Those reports match a long pattern with temporary work tracks that grow faster than oversight can keep up. When programs serve as back doors into the job market, they invite abuse and undercut fair wages for Americans who play by the rules. The Department of Homeland Security proposal tries to raise the cost of gaming the system.

What Changes For Schools, Students, And Employers

The rule would put the payment duty on schools, not on students. Colleges would need to weigh each recommendation against a real risk budget. That pushes institutions to clean up advising, confirm real job sites, and reject suspect offers before they reach the Department of Homeland Security. Some reports indicate schools could seek refunds if work authorization is denied, but full details and timelines will ride on the final rule text and agency guidance.

For employers, the move pressures them to prove that roles are real, paid, and tied to a major field. That aligns with basic fairness: no shell jobs, no “volunteer” arrangements that mask full-time work, and no cut-rate pipelines that dodge payroll taxes. For American workers, tighter screening can mean fewer loopholes that drag down wages. For foreign students with real, high-skill offers, clear rules and verified sites should keep pathways open while shutting out fraud.

Pushback From Higher Ed And Next Steps In Rulemaking

Higher education groups warn the fee could chill international enrollment and weaken a major draw for studying in the United States. The American Council on Education said many schools and students could be priced out if fees land as proposed. That group also restated the $70,000 initial and $30,000 later-fee structure. These are serious budget concerns, but they do not dispute the fraud record that triggered the Department of Homeland Security response.

Advocacy groups say Optional Practical Training fuels innovation and fills gaps in science and engineering roles. They argue students help create jobs rather than take them. Those claims reflect long-standing talking points, but the current record shows thousands of suspect cases. The Department of Homeland Security plan now enters public comment. The agency must review comments and may adjust parts of the rule. Until finalized, the proposal is not in effect and may still change.

Sources:

foxnews.com, dhs.gov, statnews.com, legal500.com, govinfo.gov, parkeval.com