US considers imposing $100,000 fee for international graduates to work after graduation

The Trump administration is considering a proposal to impose a $100,000 fee on international graduates seeking to work in the United States (US) after completing their studies under the Optional Practical Training (OPT).

Optional Practical Training (OPT) was a program that provided  a major pipeline for skilled workers to work in the US for one to three years after earning a degree.

According to The Wall Street Journal, the proposed OPT fee could achieve some of the objectives of the administration’s earlier proposal to impose a $100,000 fee on certain H-1B visa applications, which was blocked in court.  Also, if introduced, the fee would represent a significant shift in US international education and immigration policy, with potential consequences for universities, employers and the country’s ability to attract global talent.

The proposal is still under discussion at the Department of Homeland Security (DHS), and officials have not decided whether students, universities or employers would bear the cost. DHS noted that no policy should be considered final until it has been formally announced.

For many international students, OPT is a major consideration when choosing the US over other study destinations, including Canada, the United Kingdom and Australia. In 2024 alone, about 419,000 international graduates were employed under OPT.

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The opportunity to gain work experience after graduation provides a pathway from education into the US labour market and helps justify the high cost of studying in the country, as tuition and living expenses at some private US universities can exceed $100,000 annually. Those at public institutions may also spend tens of thousands of dollars each year

This $100,000 fee linked to post-study employment could make the US less affordable and less attractive to prospective students.

The proposed levy comes as US universities face growing challenges in recruiting international students. Over the past year, institutions have dealt with visa delays, increased scrutiny of foreign students and uncertainty over changes to immigration policy.

The Trump administration has also moved to replace the long-standing “duration of status” framework for international students with a system that would require them to apply for extensions to remain in the US. The change could increase administrative requirements and create greater uncertainty for students seeking to complete their studies and transition into employment.

Universities have warned that policy uncertainty could weaken America’s position in the increasingly competitive global market for international students, as they are also financially important to many US institutions. International students generally pay higher tuition fees than domestic students and contribute to university revenues at a time when some institutions are experiencing declining local enrollment because of demographic changes.

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A reduction in international student demand could therefore affect university finances, particularly at institutions that rely heavily on foreign enrolment to support academic programmes and offset falling domestic student numbers.

Implication on the US labour market

Many employers recruit international graduates through OPT before sponsoring eligible workers for H-1B visas.

Technology companies, financial institutions, engineering firms and other employers have long used American universities as a source of skilled international talent. 

Employers, particularly in the technology sector, have argued that international graduates help address shortages in engineering, computer science and other specialised fields. They also contribute to research, innovation and the growth of high-value industries.

Although it remains unclear whether the proposed $100,000 fee will be adopted, its consideration has intensified concerns about the future of America’s international talent pipeline.

As countries compete more aggressively for skilled students and workers, policies that increase the cost or uncertainty of post-study employment could influence where international students choose to study, and where they ultimately decide to build their careers.