The Trump Proposes $70,000 Fee for International Students to Work in US, Citing Suspected Fraud initiative represents a major regulatory shift affecting higher education and the technology workforce. The Department of Homeland Security (DHS) announced a regulatory proposal on Wednesday that would require American universities to pay $70,000 for each international student entering a program that allows them to work in the United States. In addition to the initial entry cost, the DHS proposal imposes a $30,000 fee for extensions under Optional Practical Training (OPT).
Optional Practical Training allows international students to work in positions directly related to their academic studies. Generally, this authorization lasts for 12 months after graduation, while graduates in Science, Technology, Engineering, and Math (STEM) fields qualify for an additional two-year extension. According to data from Inside Higher Ed, nearly 290,000 international students received OPT or STEM OPT authorization in 2024.
What Changed and Regulatory Mechanics
Under the new DHS proposal, the direct payment obligation falls upon educational institutions rather than the students themselves. However, the structural design of the rule leaves open the possibility that colleges could potentially pass these steep costs on to students or prospective employers.
The administrative framework targets the OPT pipeline by introducing substantial financial barriers intended to alter institutional behavior. According to attribution from the Associated Press and other reporting sources, the administration must review public comments before issuing any final rule, and legal challenges remain possible before the policy takes formal effect.
Context and Fraud Investigations
To justify the heavy financial deterrents, the Department of Homeland Security cited federal investigations into immigration program integrity. DHS highlighted an investigation identifying more than 4,000 students allegedly using shell companies to falsify employment records. Furthermore, the agency referenced its own separate investigation identifying 10,000 OPT participants working for employers described as highly suspect.
DHS argues that the fees would discourage systemic abuse and encourage universities to recommend only eligible students pursuing legitimate employment related to their degrees. This regulatory push follows earlier actions by the administration. In July, DHS announced a rule limiting international student stays to four years without additional federal approval, though that specific rule was subsequently blocked by a federal court.
Business Implications and Workforce Impact
The financial weight of the proposal carries severe implications for both academic institutions and broader economic sectors, including technology companies. While the rule specifically targets universities, tech industry sources stated that visa restrictions and associated costs could put U.S. companies at a global disadvantage.
Experts noted that restricting immigration and postgraduation employment pathways could worsen economic strains by cutting the available labor supply. Fanta Aw warned that restricting access to postgraduation employment could harm American innovation and workforce development.
Risks, Limitations, and Sector Impact
Education organizations have reacted strongly, warning that the proposal could further discourage international enrollment. The higher education sector is already facing downward enrollment trends. The number of new international students entering the United States fell 17% last fall, and some universities have reported enrollment declines ranging from 30% to 40% this year.
DHS itself expects international student participation in work programs to decline significantly if the rule is enacted in its current form.
What to Watch Next
Because the fees are not yet in effect, stakeholders are closely monitoring the regulatory timeline. The administration is required to review public comments submitted regarding the DHS proposal before deciding whether to issue a final rule. Furthermore, given the history of previous immigration rules—such as the four-year stay limit blocked by a federal court—legal challenges remain possible and are widely anticipated by legal experts and higher education advocacy groups.