The Department of Homeland Security is scheduled to publish a major proposed change to Optional Practical Training in the Federal Register tomorrow, October 8, 2026, U.S. time. The proposal would fundamentally change how F-1 students obtain OPT. 

Under the current system, an eligible F-1 student receives an OPT recommendation from the school’s Designated School Official, obtains a new Form I-20, and then files Form I-765 with USCIS for employment authorization. Initial OPT generally allows up to 12 months of practical training related to the student’s field of study. Eligible STEM graduates can later seek a separate 24-month STEM OPT extension. 

Under the proposed system, the university would first have to pay $70,000 for each F-1 student receiving an OPT recommendation for the first time. The fee must be paid before the DSO can enter the OPT recommendation in SEVIS. Without that payment, the student cannot move forward normally with the OPT employment-authorization process. 

This is an extraordinary change. Universities may simply decide that they cannot justify paying $70,000 for each graduating international student. If that happens, OPT could remain legally available on paper but become practically unavailable for many students.

The proposal also provides for a $30,000 fee for subsequent OPT recommendations, including later OPT participation and, according to the text, a STEM OPT extension. 

DHS says the purpose is to combat fraud, strengthen program integrity, and protect U.S. workers. DHS specifically cites shell companies, fake employment, suspect worksites, and thousands of questionable OPT arrangements. 

The timing will be critical. The proposal being published on October 8 is only the NPRM, not the final rule. The document says that if a final rule is later issued, it would take effect 60 days after publication of that final rule. 

An April or May 2027 effective date is therefore possible if DHS moves quickly and publishes the final rule roughly two months earlier. That timing would coincide with the major spring graduation season, but the proposal itself does not expressly say that April or May 2027 is the target.

In practical terms, the proposal does not formally abolish OPT. But a $70,000 university-paid fee could dramatically shrink it and potentially make OPT unworkable for a large number of international graduates

For more information, or for a detailed conversation regarding the proposed OPT fee, please schedule a time to speak here

By: Rahul Reddy

Rahul Reddy is the founding partner of Reddy Neumann Brown PC. He founded our firm in 1997 and has over 28 years of experience practicing employment-based immigration. Rahul‘s vast knowledge of the complex immigration system makes him an invaluable resource and an expert in the field. His personal experience with the immigration system has made him empathetic to each of his clients’ cases and empowered him to help others achieve the American Dream.

Rahul‘s dedication to serving the immigrant community is evident, from his daily free conference calls to his weekly immigration Q&As on Facebook and YouTube Live. He is an active member of the immigrant community and one of the founders of ITServe Alliance. He has been a member of American Immigration Lawyers Association since 1995.