US universities warn new OPT fee proposal could deter international students

Colleges warn the new charges could dismantle the OPT program and significantly damage American competitiveness in global education

US universities warn new OPT fee proposal could deter international students
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A coalition representing nearly 600 American colleges and universities has formally opposed a proposed US immigration rule that would levy substantial fees on institutions for recommending international students for the Optional Practical Training (OPT) program. The Presidents' Alliance on Higher Education and Immigration, which submitted public comments to the Department of Homeland Security (DHS), has urged the administration to withdraw the proposal entirely.

Under the proposed rule published on October 8, 2026, educational institutions would face a $70,000 fee for recommending a student for their initial OPT, with an additional $30,000 charge for every subsequent recommendation, including those for STEM OPT extensions. Miriam Feldblum, president and CEO of the Presidents' Alliance, warned that these charges would likely render practical training inaccessible for many students and campuses, potentially dismantling the existing program.

The coalition emphasized the potential for widespread negative economic impacts. According to the Alliance, international students contributed $42.9 billion to the US economy and supported more than 3.5 lakh jobs during the 2024-25 academic year. Internal estimates from one university with roughly 6,000 international students indicated the new fees could cost the institution more than $60 million annually, representing over 1% of its total operating budget.

A survey conducted by the coalition involving 734 current and former international students found that 69% would likely not have chosen a US institution had these fees been in effect. For STEM students specifically, that figure rose to 70%. The Alliance argued that if these students relocate to countries such as Canada, the UK, Australia, or Germany, the United States risks losing its competitive edge in research, innovation, and the pipeline of skilled graduates.

Key facts

  • The proposed fees are $70,000 for initial OPT recommendations and $30,000 for subsequent ones.
  • The proposal was published by the Department of Homeland Security on October 8, 2026.
  • International students supported over 3.5 lakh jobs in the 2024-25 academic year.
  • A survey of 734 students revealed that 69% would have reconsidered studying in the US due to these fees.
  • The Presidents' Alliance represents nearly 600 US colleges and universities.

Why it matters

University leaders warn that declining international enrollment will have direct consequences for domestic students, as colleges may struggle to sustain programs and courses that rely on broad student participation. The coalition further argues that the move could stifle university research partnerships and successful startup development by pushing global talent toward competing nations.

Background

The Presidents' Alliance on Higher Education and Immigration stated they shared the government’s stated goals of preventing fraud and protecting American workers, but questioned the necessity of these specific fees to achieve those objectives.

Source: Times of India

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