The Association has filed comments opposing a proposed Department of Homeland Security rule that would impose major fees on schools that recommend foreign students for Optional Practical Training (OPT).
The proposal
For the first time, schools would be required to pay $70,000 for an initial OPT recommendation and $30,000 for subsequent recommendations, including STEM OPT extensions. Without payment, students could not apply for or obtain work authorization. DHS estimates the proposal would generate annual fees of $8.4 billion to $16.5 billion across 2,478 schools.
The proposed rule would have negative implications for
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Talent pipeline: OPT and STEM OPT provide access to early-career engineers, technologists, and data scientists. In 2024, temporary visa holders earned about two-thirds of U.S. doctorates in electrical and computer engineering, the field behind AI chip design.
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Recruiting and planning: Employers rely on OPT to recruit and develop graduates. Uncertain access could disrupt campus hiring and long-term talent planning for large employers.
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Global competition: From 2017 to 2023, international student enrollment grew 85% in Canada, 72% in the United Kingdom, and 63% in Germany, while falling 3% in the U.S.
Our recommendations
The Association argues the fees exceed DHS’s authority and fail to consider less burdensome alternatives. We urged DHS to use existing fraud-prevention tools and, if fees move forward, tie them to documented costs, phase them in and exempt graduates in critical technology fields. We also called for an updated STEM degree list and a more predictable path to permanent residence.
What’s next
DHS will review public comments before deciding whether to finalize the rule. The Association expects few changes, but we’ll keep members updated on developments.
