What Exactly Is the Proposal?
According to reports that surfaced in late July and early August 2026, the US Department of Homeland Security (DHS) is internally considering a mandatory $100,000 fee for participants in the Optional Practical Training (OPT) program. It is crucial to note
that this is not a formal bill or an official rule yet; it is an idea reportedly being discussed. Key details remain unclear, such as who would be responsible for paying the fee—the student, the employer, or the university—and when such a rule might take effect. However, the very discussion of such a fee, aimed at deterring international graduates from working in the US, has sent shockwaves through academic and immigration circles.
A Quick Refresher on OPT
Optional Practical Training, or OPT, is a long-standing program that allows international students on an F-1 visa to work temporarily in the United States to gain practical experience directly related to their field of study. For most graduates, it provides up to 12 months of work authorization. For those with degrees in Science, Technology, Engineering, and Mathematics (STEM), a 24-month extension is possible, allowing for up to three years of work. For tens of thousands of Indian students, OPT is not just a benefit; it is the critical bridge between their US education and a potential long-term career. It allows them to get a foothold in the US job market and is often the only pathway to securing an H-1B visa sponsorship. Currently, there is no federal minimum salary requirement for the initial 12-month OPT, though STEM OPT requires paid employment.
How Would This Impact Indian Students?
A $100,000 price tag would effectively act as a ban on OPT for the vast majority of graduates. Fresh graduates, many of whom have already taken significant loans for their US education, cannot afford such a fee. This would have several devastating consequences. It would immediately devalue a US degree for students who rely on post-study work to gain experience and pay back loans. The financial return on investment would simply disappear for many. It would also force a difficult choice on prospective students, potentially pushing them to consider more welcoming policies in countries like Canada, the UK, and Australia, which have their own post-study work programs. For students already in the US, it creates immense anxiety and uncertainty about their future, potentially making their multi-year financial and personal investment feel worthless overnight.
What's the Ripple Effect for Employers?
The impact extends far beyond students. US employers, from small startups to large tech corporations, rely on the talent pipeline of international graduates. Few companies would be willing or able to pay a $100,000 fee to hire a fresh graduate for what is essentially a training period. This could lead to several outcomes. Firstly, it would make it harder for innovative, cash-strapped startups to access a global talent pool. Secondly, it could exacerbate talent shortages in critical STEM fields, where international students make up a significant majority of graduate students in areas like computer science and engineering. Critics argue that rather than protecting American jobs, such a policy would harm US innovation and economic competitiveness by driving top talent away.
Is This Likely to Become Law?
At present, the proposal is just that—a proposal under discussion. It has not been formally announced or published as a rule. If the administration decides to proceed, it would face a lengthy regulatory process, including public comment periods and, almost certainly, significant legal challenges. A similar attempt to impose a $100,000 fee on H-1B visas was struck down by a federal court in June 2026, which ruled the executive branch did not have the authority to impose such a fee without congressional action. While that legal battle is ongoing, it sets a precedent that suggests a $100,000 OPT fee would face a difficult and uncertain path to implementation.
