DHS Proposes $70,000 Fee for Foreign Students Seeking Work Permits: What to Know

The Department of Homeland Security has proposed a rule that would charge international students on F-1 visas $70,000 for an initial optional practical training (OPT) work authorization and $30,000 for any later extension, Fox News reported. The agency says the aim is to curb the flow of cheap foreign labor into the U.S.

OPT currently costs around $500, according to Fox News. The proposal is not final: it must go through a public comment period first, and a critic quoted by Fox News expects it to face legal challenges.

What would the proposed rule change?

Under the proposal, F-1 visa holders would pay $70,000 for an initial OPT authorization and $30,000 for each extension. OPT lets eligible foreign students work in their field of study, part time during school and full time for a set period after graduation.

Students must work in a job directly related to their major, get a recommendation from a designated school official and receive employment authorization from U.S. Citizenship and Immigration Services. Graduates in science, technology, engineering or math fields can qualify for an additional 24-month extension.

Why does DHS say it is doing this?

A DHS spokesperson said the program was never meant to be a back door into the American workforce or a subsidy for cheap labor. The spokesperson said the change would make foreign students justify their worth to employers and argued that American workers should not compete against a program turned into a pipeline for cheap foreign labor.

DHS also cited what it called widespread fraud and abuse identified by the Student and Exchange Visitor Program. According to the agency, some schools, school officials, employers and students have exploited the rules through improper arrangements, including non-compliant worksites and “pay-to-stay” visa schemes. DHS says the fee would push schools to exercise greater oversight and selectivity before recommending students.

Who is pushing back?

Doug Rand, director of the Talent Mobility Fund, an organization that advocates attracting foreign STEM talent, wrote on LinkedIn that DHS has no authority to impose such a fee. He said the rule would likely fare poorly in court, and he pointed to the $100k H-1B fee and other restrictive policies that he said have been struck down. Fox News did not report a response from DHS to that argument.

What this means for students and employers

If the rule took effect as proposed, the cost of the work authorization would rise from around $500 to $70,000 for an initial grant. A student who qualified for further extensions would face $30,000 for each one, according to the proposal as described by Fox News.

The proposal also targets the schools that recommend students. DHS says it wants institutions to be more selective, which could affect which students are put forward for the program. The sources do not say who would be expected to pay the fee, whether students, employers or others, and they do not describe exemptions or how it would work for students already in the program.

What happens next?

The proposed rule will be open to public comment before any final implementation, Fox News reported. The source does not give a start date, a deadline for comments or a timeline for a final rule. Rand’s comments suggest that if the rule is finalized, legal challenges are likely.

Around Prague, based on reporting by Fox News