DHS proposes massive $70K fee for foreign students seeking work authorization

A proposed rule from the Department of Homeland Security (DHS) would implement new fees for international students seeking temporary employment in their field of study, an effort the agency says is aimed at reducing the flow of cheap labor into the U.S.

Under the proposal, F-1 visa holders would be charged a $70,000 fee for an initial Optional Practical Training (OPT) authorization, as well as a $30,000 fee for any subsequent extension.

“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.”

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Currently, OPT allows eligible foreign students to work part-time while enrolled in school and full-time for a set period after graduation at a cost of around $500.

To participate, students must work in a field directly related to their major, receive a recommendation from a designated school official (DSO) and obtain employment authorization from U.S. Citizenship and Immigration Services (USCIS).

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Graduates with degrees in science, technology, engineering or mathematics (STEM) fields can qualify for an additional 24-month extension.

DHS said the proposed fee structure comes in response to widespread fraud and abuse identified by the Student and Exchange Visitor Program (SEVP). According to the agency, certain schools, DSOs, employers and F-1 students have exploited existing regulations through illicit arrangements, including non-compliant worksites and “pay-to-stay” visa schemes.

The agency maintains that the rule change would force educational institutions to exercise “greater oversight and selectivity” before recommending students for the program.

However, the proposal is expected to face immediate legal hurdles.

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“Don’t Panic: DHS has no authority to slap a $70k fee on international students,” Doug Rand, director of the Talent Mobility Fund — an organization advocating to attract foreign STEM talent — wrote on LinkedIn. “Let’s not overreact — this proposed rule isn’t going to fare well in the courts, just as the $100k H-1B fee and other restrictionist policies have been struck down.”

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The proposed rule will be subject to a public comment period before any final implementation.