US wants to significantly limit foreign graduates' access to labor market

The administration of US President Donald Trump has proposed introducing new fees for American universities that help foreign students obtain work authorization in the country. Under the new rules, educational institutions will have to pay up to $100,000 for each graduate's participation in the professional practice program.

This is reported by The Washington Post, citing a draft from the US Department of Homeland Security (DHS) published on October 7.

The change concerns the Optional Practical Training (OPT) program, which allows foreign students with F-1 visas to legally work in the US in their field during or after completing their studies.

According to the proposed changes, universities and colleges will have to pay $70,000 for the initial recommendation to allow a foreign student to participate in OPT. Each additional recommendation, including for extending work authorization, will cost another $30,000.

Thus, the total cost for processing the initial authorization and one extension could reach $100,000 per student.

Currently, educational institutions pay no fees for such recommendations. Foreign students themselves typically only pay for the employment authorization application, which costs up to $520.

The OPT program allows most foreign graduates to work in the US for 12 months. Students who have earned degrees in STEM fields—science, technology, engineering, and mathematics—can extend this period by an additional 24 months.

The Department of Homeland Security explains the initiative as a necessity to combat abuse and protect the American labor market. The agency claims that some educational institutions and employers use OPT to attract cheap labor or to circumvent restrictions of other work visa programs.

Under DHS's plan, the high fees should force universities to more carefully vet students before issuing recommendations and to take participation in the program more responsibly.

At the same time, the new rules could significantly limit the opportunities for foreign students to remain working in the US after their studies. Although formally the universities will be the fee payers, the American agency acknowledges that educational institutions may pass these costs on to students or employers.

As The Washington Post notes, the changes could also negatively affect American technology and financial companies that actively recruit foreign university graduates.

According to DHS data, in 2024 about 194,600 foreign students used the OPT program, and another 95,400 participated in the STEM OPT extension program. Potentially, the new regulation could affect nearly 2,500 American educational institutions.

However, the proposed fees have not yet taken effect. The draft includes a 30-day public comment period, after which the Department of Homeland Security can review feedback and prepare the final version of the rules.

If the document is approved as proposed, the new requirements will take effect 60 days after the official publication of the final decision. They will not apply to previously approved authorizations and recommendations, although future OPT extensions may be subject to the new fees.

For Ukrainians studying at American universities on F-1 student visas, the adoption of such rules could also make it more difficult to obtain initial professional experience in the US after graduation.

Previously, the Trump administration has already tightened requirements for another student practice program—Curricular Practical Training (CPT). A new clarification from US immigration authorities has narrowed the opportunities for internships that are not a required part of academic programs.

Sources: The Washington Post, US Department of Homeland Security (draft rules)