Opposition to proposal of heavy fee on OPT for foreign students in US
Several US states have strongly opposed the proposed $100,000 fee for international students' post-study work rights. A coalition led by California has demanded the federal government withdraw the plan.
Attorneys general of several states, led by California, have opposed the federal government's proposed new fee structure for international students in the United States. Under this proposal, universities may have to pay up to $100,000 in fees for recommending foreign students for post-study work training.
According to California Attorney General Rob Bonta, the coalition of states has filed formal objections with the Department of Homeland Security (DHS). He said that if this rule is implemented, foreign students will stay away from American universities and it will cause heavy damage to the country's economy.
This proposed rule was issued on October 8, which will impact the Optional Practical Training (OPT) program. Foreign students holding F-1 visas gain work experience in the US through this program after completing their studies.
According to the new plan, universities will have to deposit $70,000 at the time of the first recommendation for a student's OPT and $30,000 for subsequent recommendations, including extensions in STEM fields. Although the fee has to be paid by the university, institutions can recover this money from students or their employers.
Attorney General Rob Bonta says that the DHS does not have the authority to impose such charges without parliamentary approval, and this is equivalent to imposing a tax in the name of a fee. He has also raised questions over the 30-day public consultation period.
Apart from California, attorneys general of New York, New Jersey, Maryland, Massachusetts, Michigan, Illinois, Washington, Virginia and the District of Columbia have also joined this opposition.
During the 2024-25 academic year, more than 294,000 foreign students participated in the OPT program across the US. This proposal is a matter of major concern especially for Indian students who depend on OPT to gain post-study work experience.
Key developments
- Several US states opposed the proposal to impose a $100,000 fee on foreign students' OPT.
- Formal objections were sent to DHS under the leadership of California Attorney General Rob Bonta.
- According to the proposal, the fee has been set at $70,000 for the first recommendation and $30,000 for the subsequent term.
- States argue that this will damage the US economy and increase the burden on students.
