Trump administration proposes a $89.6k fee for international students to work in the US

WASHINGTON — The Department of Homeland Security on Wednesday (Oct 7) proposed a US$70,000 (S$89,600)  fee for international students seeking to work in the US, the latest effort from the Trump administration to crack down on foreign enrollment.

A proposed rule would require schools to pay the fee for every student who participates in the optional practice training programme, known as OPT, which allows students to work in jobs related to their major during or after their time in school. Students are generally eligible for one year of work post-graduation, though certain science, technology, engineering and math majors are eligible for an additional two years.

Schools would be required to pay the $70,000 for each new student's initial application to the programme, and a $30,000 fee for each renewal.

Change would be a blow to higher education and some businesses

American colleges and universities heavily recruit students from overseas as a source of tuition revenue. Tech companies and other industries also hire many international students for technical roles.

The OPT programme allows international students to gain hands-on experience and fill labour shortages in high-demand STEM fields, said Fanta Aw, CEO of NAFSA, an association that represents international education.

"Driving away the talents, perspectives, and aspirations of international students will only hurt American innovation, economic growth, workforce development, and global leadership," Aw said in a written statement.

In a statement, DHS described the fee as a response to fraud and abuse of the visa programme, which it called a "pipeline for cheap foreign labour."

The public has 60 days to comment on the proposal before DHS can finalise it and put it into effect. The proposal also could face legal challenges from higher education groups or business associations that could delay it.

Trump administration puts pressure on international students

The proposed rule is part of its wider efforts to crack down on immigration and reshape higher education. Last year, the Republican administration began suddenly terminating the legal status of thousands of international students, detaining and deporting many of them.

This summer, the administration finalized a rule that sought to prevent international students from staying in the US for more than four years without approval from the federal government. 

The move drew swift backlash from higher education leaders who said it would increase the burden on schools and noted that many programs are longer than four years by design. A federal court prevented the rule from taking effect in September.

Doug Rand, a former senior adviser at US Citizenship and Immigration Services during the Biden administration, predicted that the fee would be struck down in the courts, as was a US$100,000 fee for the H-1B work visas that many tech companies and universities rely on to fill openings for skilled jobs.

The Trump administration is now trying a different way to raise the fee for the visas to more than US$100,000.

Rand said fees are not the answer.

"When we educate international students at our universities, and they want to work and apply their talents here after graduating, of course we should embrace them — not use an exorbitant fee as a pretext to send them packing," Rand said in an email.

Enrollment concerns mount among education groups

Sarah Spreitzer, vice president at the American Council on Education, which represents college and university presidents, said international enrollment has suffered.

Last fall, the number of new students entering the United States for the first time fell by 17 per cent, the sharpest decrease since the COVID-19 pandemic. Overall numbers for this fall are not yet available, but Spreitzer said some individual colleges are reporting drops of 30 per cent to 40 per cent.

She said the new Trump plan will not help.

"We know that OPT is one of the reasons that international students choose to study in the United States because they're able to have that post-graduation work experience," she added.

A similar programme that allowed international students to participate in internships and practicums also has faced scrutiny from the Trump administration. 

New guidance from US Immigration and Customs Enforcement that the programme, Curricular Practical Training, should only be authorised when the work experience is a degree requirement led to a lawsuit Monday.

Education groups, including the Association of American Universities and NAFSA, said that in the past that programme was allowed if it was "directly related to the student's major area of study". 

The groups also said ICE was threatening college university officials with criminal prosecution if they did not comply.

"We know the administration has been trying to hinder legal employment-based immigration through numerous means," said Steven Brown, a Houston-based immigration lawyer. "I think this is the next level of attack, and I think it's a design to kill the programme without killing the programme. I don't see too many schools wanting to pay $70,000 for a student to get OPT."

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