What Is OPT and Why Does It Matter?
Optional Practical Training (OPT) is a long-standing program that allows international students on F-1 visas to work in the United States for up to 12 months in a job directly related to their field of study after graduation. For those with degrees in Science,
Technology, Engineering, and Mathematics (STEM), this can be extended by an additional 24 months. For many, especially the hundreds of thousands of Indian students in the U.S., OPT is not just a benefit; it's a crucial part of the plan. It provides invaluable real-world experience, helps pay off substantial education loans, and serves as the primary pathway to long-term employment visas like the H-1B. Without OPT, the high cost of an American education becomes much harder to justify, changing the entire return-on-investment calculation for prospective students and their families.
The Reported $100,000 Proposal Explained
In late July and early August 2026, reports emerged that the Trump administration was considering a proposal to impose a $100,000 fee for students to participate in OPT. While the Department of Homeland Security (DHS) has not formally announced or implemented such a rule, the discussion alone has caused significant alarm. It is unclear whether the student or their employer would be expected to pay this fee. This idea is part of a broader pattern of using financial barriers to reshape the legal immigration system. A similar $100,000 fee was previously imposed on certain H-1B visas in September 2025, signaling the administration's strategy. For a recent graduate, a six-figure fee would effectively make OPT inaccessible, achieving the administration's reported goal of deterring international students from working in the U.S. post-graduation.
Why the Controversial Plan Is Resurfacing
This proposal is back in focus due to a confluence of recent events and ongoing policy reviews. The administration has been actively signaling its intent to overhaul student visa programs. In February 2026, DHS confirmed it was re-evaluating the entire OPT program, citing concerns about worker displacement and national security. This followed efforts by some lawmakers to defund the program entirely. The recent reports of the $100,000 fee surfaced in late July and early August 2026, indicating that this idea is an active part of DHS's internal discussions. This comes as other restrictive measures are being implemented, such as replacing the flexible 'duration of status' system with a fixed four-year admission period, which adds more bureaucratic hurdles for students.
Potential Impacts on Students and Industries
The economic and academic consequences of eliminating or severely restricting OPT could be vast. Universities, which rely on the tuition of international students, could see a sharp decline in enrollment. This would particularly affect graduate programs in science and engineering. The U.S. tech and innovation sectors, which depend on a steady pipeline of global talent, would face significant labor shortages. Studies have shown that rather than displacing American workers, foreign graduates on OPT are linked to job creation and higher wages for native workers. A quarter of all billion-dollar U.S. startup companies were founded by someone who first came to the country on a student visa. Eliminating that pathway could drive top talent, and the innovation they bring, to competitor nations like Canada and the UK, which offer more generous post-study work policies.
The Arguments and Legal Hurdles
Supporters of restricting OPT argue that it protects job opportunities and wages for American graduates. They claim employers use the program to hire foreign labor at a discount, as some OPT participants are exempt from certain payroll taxes. However, there are significant legal questions surrounding a potential $100,000 fee. A federal court struck down a similar $100,000 fee for H-1B visas in June 2026, ruling that the executive branch does not have the authority to impose what amounts to a tax without congressional approval. An appeals court upheld this decision in July, suggesting that any similar fee for OPT would face a strong and likely successful legal challenge. Meanwhile, a bipartisan bill has been introduced in Congress to formally authorize OPT in federal law, aiming to protect it from administrative changes.
