The $100K OPT fee proposal has been cleared by White House.
The proposal will soon become a rule and a $100,000 fee will be imposed for the Optional Practical Training (OPT) program. OPT is a temporary work programme that allows eligible F-1 international students to gain practical work experience related to their field of study in the US. Students generally receive permission to work for up to 12 months after completing their academic programme. Those who graduate in qualifying science, technology, engineering and mathematics (STEM) fields can receive a 24-month extension, allowing them to work for up to three years in total. Around 300,000 F-1 students had employment authorization through OPT last year, according to Bloomberg Law. OPT $100,000 fee has cleared White House review and will be posted as a rule any day now. If a student is expected to pay the fee, a $100,000 OPT fee could have a major impact on international students, particularly those who rely on OPT as their first opportunity to work in the US after completing a degree.
Because it provides a bridge between graduation and employment-based immigration, including the H-1B programme, oPT is particularly important for international students. A six-figure fee could therefore affect not only students but also universities and employers that depend on international graduates.
“Universities will be the ones to pay it, which makes no sense because why would they pay a fee for some random employer?” policy commentator Sam Peak said. Indian American Advocacy Council co-founder Sidharth said if universities will have to pay this fee, they will admit fewer international students. American employers will lose one of their biggest pipelines of US-educated talent and universities already facing enrollment pressure will lose billions more,” he said.
International students in the US are staring at a dramatic increase in the cost of working after graduation under a Trump administration proposal that has cleared the White House review. That remains unclear. The DHS proposal does not publicly disclose the amount or explain who would ultimately be responsible for paying the proposed fee. Many legal experts believe that the universities may have to pay it to the employers who hires its students for the OPT program. For many Indian students, OPT is also an important route toward an H-1B petition. Students can use the OPT period to gain US work experience while an employer seeks to sponsor them for an H-1B visa. “International students will take their tuition, talent and research elsewhere. Graduate STEM programs will get hit. “This isn’t just an immigration restriction. It risks turning an international student from an asset universities compete to recruit into a six-figure financial liability after graduation, that changes the economics of American higher education overnight. You don’t strengthen American universities by making their successful graduates a financial punishment,” he added. Catch the latest World News and Live updates. Download the TOI app.