DHS Proposes New Fees for Foreign Students Seeking Work Authorization

The Department of Homeland Security (DHS) has proposed a new rule that would impose significant fees on international students seeking temporary employment in their field of study. The proposed fees include a $70,000 charge for an initial optional practical training (OPT) authorization and a $30,000 fee for any subsequent extension. According to a DHS spokesperson, the initiative aims to reduce the flow of inexpensive labor into the United States. The spokesperson stated, "Optional practical training was never meant to be a back door into the American workforce, a subsidy for cheap labor or a prize for those who game the system." The spokesperson added that the changes would require foreign students to demonstrate their value to employers, ensuring American workers do not have to compete against a program perceived as a source of cheap foreign labor. Currently, OPT allows eligible foreign students to work part-time while studying and full-time for a designated period after graduation, at a cost of approximately $500. To qualify, students must work in a field related to their major, receive a recommendation from a designated school official (DSO), and obtain employment authorization from U.S. Citizenship and Immigration Services (USCIS). Graduates in science, technology, engineering, or mathematics (STEM) fields may qualify for an additional 24-month extension. DHS indicated that the proposed fee structure is a response to identified fraud and abuse within the Student and Exchange Visitor Program (SEVP). The agency claims that some schools, DSOs, employers, and F-1 students have exploited existing regulations through illicit arrangements, including non-compliant worksites and “pay-to-stay” visa schemes. The proposed rule is expected to face legal challenges. Doug Rand, director of the Talent Mobility Fund, expressed skepticism about the rule's viability, stating on LinkedIn, "DHS has no authority to slap a $70k fee on international students. This proposed rule isn’t going to fare well in the courts, just as the $100k H-1B fee and other restrictionist policies have been struck down." The proposed rule will undergo a public comment period before any final implementation.