The $100,000 Fee That Could Stop International Students From Working in America

What Is Happening?

Important Point: The Trump administration is considering a $100,000 fee for Optional Practical Training (OPT) — the program that lets international students work in the U.S. after graduation.

Imagine you’re an international student who just graduated from a U.S. university. You want to stay and work for a year or two to gain experience. Right now, you can do this through OPT (12 months) or STEM OPT (extra 24 months for science/tech/engineering/math degrees).

But a new proposal could make you pay $100,000 just for the privilege of applying. That’s like buying a house — but for a temporary work permit.

Why Does This Matter?

International Students Are a Huge Part of U.S. Innovation

1 in 4 U.S. billion-dollar startups was founded by someone who came to America as an international student
These companies created 1,123 jobs each on average
Total value: $3.5 trillion (over $4 trillion including public companies)

They Fill Critical Gaps in STEM Fields

Field	% of Full-Time Grad Students Who Are International
Computer & Information Sciences	80%
Electrical & Computer Engineering	75%
Mathematics & Statistics	62%
Industrial/Civil/Mechanical Engineering	Majority

Luther Lowe (Y Combinator): "It’s hard to overstate what a disaster this would be for the U.S.’s AI race against China."

What Is OPT and STEM OPT? (Simple Explanation)

Think of it like a trial period after college:

OPT (Optional Practical Training)
→ Work 12 months in your field of study (before or after graduation)
STEM OPT
→ Extra 24 months (36 total) if you studied science, technology, engineering, or math
Goal: Get real-world experience → Maybe win the H-1B lottery → Stay longer

Key Fact: The George W. Bush administration created STEM OPT to help students get picked in the H-1B visa lottery.

What Does Research Say? (Spoiler: OPT Helps, Not Hurts)

Study by Prof. Madeline Zavodny (University of North Florida)

No evidence that OPT students take jobs from Americans
More OPT students = lower unemployment for U.S. STEM workers
This holds true at state level too

Another Study (2016 STEM OPT Expansion)

Native high-skilled workers saw BIG job gains
More startups created
More innovation & startup investment — especially near top universities

Bottom line: International students create jobs, not steal them.

What Other Restrictions Has the Administration Already Made?

1. December 2025 Rule

Made it harder for recent grads to win H-1B lottery

2. July 2026 Rule ("Duration of Status" Eliminated)

Students can’t stay just because they’re enrolled
Must reapply for permission to keep studying

3. Proposed H-1B Wage Hike

Would price out recent international grads from the job market

Dan Berger (Immigration Lawyer): "Even if this never happens, it comes on the heels of the duration of status rule and changes to the H-1B visa category. There is too much uncertainty."

Is This $100,000 Fee Even Legal?

The Administration Tried This Before (H-1B Fee)

Used Section 212(f) of immigration law to impose $100K fee on new H-1B applicants entering the U.S.
Federal Judge Leo Sorokin struck it down (June 2026)
Said it’s a tax, not a fee — and only Congress can tax
Cited Supreme Court cases: Bailey v. Drexel Furniture, NFIB v. Sebelius, Learning Resources v. Trump

Could They Do It for OPT?

Lawyers are confused — no clear legal authority
To use 212(f), they’d have to make students leave the U.S. after graduation, then re-enter for OPT
That would be a massive, disruptive change

Michelle Hackman (Wall Street Journal): "It wasn’t clear whether the White House would sign off on it… or who would pay: students, universities, or employers."

What Would Happen If This Fee Became Real?

For Students

Cannot afford $100,000 → Won’t come to U.S. universities
Will choose Canada, UK, Australia, Germany — all have better post-grad work policies

For Employers

Won’t pay $100K for a 12–36 month intern
Will hire overseas or move R&D out of the U.S.

For Universities

Enrollment drops → Budget crises
Trump himself said: "International students strengthen the economy and help many U.S. universities survive by boosting enrollment."

Summary: The Big Picture

What’s Proposed	$100,000 fee for OPT/STEM OPT work authorization
Who It Hurts	International students, U.S. universities, tech companies, innovation economy
What Research Says	OPT creates jobs, lowers U.S. unemployment, boosts startups & AI leadership
Legal Status	Highly questionable — similar H-1B fee already struck down by federal court
Bigger Pattern	Part of a series of restrictions making U.S. less attractive to global talent

The irony: President Trump has publicly supported giving green cards to international grads — but his administration is now considering a fee that would drive them away entirely.

FAQ

1. What is Optional Practical Training (OPT)?

OPT lets international students on F-1 visas work in their field of study for 12 months before or after graduation. STEM OPT adds 24 more months for science/tech/engineering/math degrees.

2. Who would pay the $100,000 fee?

It’s unclear — the student, the university, or the employer. But no one can really afford it for a temporary work permit.

3. Do international students take jobs from Americans?

No. Multiple studies show more OPT students = lower unemployment for U.S. STEM workers. They also start companies that hire Americans.

4. Has a court ruled on this kind of fee before?

Yes. A federal judge struck down a $100,000 H-1B entry fee in June 2026, calling it an unconstitutional tax (only Congress can impose taxes).

5. Why does this matter for AI and tech?

International students make up 80% of grad students in computer science. If they leave, the U.S. loses its talent pipeline for AI, semiconductors, biotech, and more — right while competing with China.

Article based on reporting by Stuart Anderson (Forbes), Michelle Hackman (Wall Street Journal), and research from the National Foundation for American Policy.

Popular Posts