DHS proposes charging universities $70,000 for each foreign student working under OPT: What would change

The Department of Homeland Security (DHS) proposed on Wednesday that universities pay $70,000 for each international student working in the United States through the Optional Practical Training (OPT) Program, and $30,000 for each subsequent authorization. Until now, according to Politico, the students themselves paid about $500. As the agency explained in a statement, the goal is to combat fraud and protect American workers.

OPT is a federal program that allows international students with an F-1 visa—the student visa—to work temporarily in the U.S. in jobs directly related to their field of study. They can do so during their studies (pre-graduation OPT) or after completing them (post-graduation OPT).

To participate, students need a recommendation from a designated school official at their university and must then apply for employment authorization from USCIS. The authorization lasts up to 12 months per educational level, and students studying science, technology, engineering or mathematics (STEM) may request an extension of an additional 24 months.

What is the DHS proposing?

In a press release, DHS argued that, as more students participated in the program, SEVP detected schemes involving schools, school officials, employers, and students to exploit the rules and "pay-to-stay" visas. For example, according to the Immigration and Customs Enforcement (ICE) agency, there are more than 10,000 cases of possible fraud associated with the program. According to DHS, the fee will lead schools to be more selective and to monitor those they recommend more closely.

Under the changes proposed by DHS, schools certified by the Student and Exchange Visitor Program (SEVP) would be required to pay the fee before a school official recommends a student for OPT and before the student applies for a work permit from U.S. Citizenship and Immigration Services (USCIS). If the fee is not paid, USCIS would not grant authorization. The fee is not tied to any specific employer and would apply to any type of OPT. As for the funds, they would go to the Department of the Treasury.

"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," a DHS spokesperson said.

"DHS is upskilling OPT to require foreign students to justify their worth to employers. American workers should not have to compete against a program that has been turned into a pipeline for cheap foreign labor," the spokesperson added.

At this time, the initiative is a proposal and is not yet in effect. The public can submit comments from October 8 through November 9, and DHS will review them before deciding whether to amend the rule.