Trump mulls $100,000 OPT fee for foreign graduates: What it means for Indians

Context: A new hurdle for the American dream

The Trump administration is weighing a proposal to charge foreign students a $100,000 fee for the right to work in the United States after graduation, according to reports. The levy would apply to the Optional Practical Training (OPT) programme, a crucial pathway that lets international graduates stay for up to three years of work experience, often serving as a stepping stone to the H-1B visa.

For Indian students, this is not a distant hypothetical. India sends the largest number of international students to the US — over 3.5 lakh in the last academic year, according to official data. A large share of them rely on OPT to offset tuition costs and build US resumes. A six-figure fee would effectively price many out of the market.

The backdrop: OPT under scrutiny

OPT has long been a target for immigration hardliners who argue it undercuts American wages. The programme allows graduates in STEM fields to work for up to 36 months, and non-STEM graduates for 12 months, without the employer needing to sponsor a visa. Critics call it a backdoor to the H-1B system; supporters say it keeps global talent in the US.

The current proposal, first reported by the Wall Street Journal, is still in its early stages. No formal rule has been drafted, and officials have not yet confirmed the exact figure or timeline. But the very fact that it is under discussion signals a shift in how the administration views foreign students — not as a pipeline of talent, but as a source of revenue and a bargaining chip in immigration politics.

Why it matters for Indian students

The financial math is brutal. A $100,000 fee would come on top of tuition that can exceed $60,000 per year at top universities. For a typical Indian student funding their education through loans or family savings, the fee would be nearly impossible to absorb. It would also alter the return-on-investment calculation for a US degree.

More than half of Indian students in the US are enrolled in STEM fields, particularly computer science and engineering, according to the Open Doors report. These are precisely the programmes that feed into OPT's extended work window. A steep fee would hit them hardest, potentially reshaping course choices and university applications.

The proposal also threatens the H-1B pipeline. Many Indian professionals currently on H-1B visas first entered the US on an F-1 student visa and used OPT as a bridge. If that bridge becomes unaffordable, the flow of Indian tech talent to Silicon Valley — and to American companies — could slow significantly.

Impact on US universities and the broader economy

US universities have not yet commented publicly on the proposal, but the implications are clear. International students pay out-of-state tuition and subsidise domestic programmes. A fee that deters them would cut a major revenue stream, forcing universities to either raise costs or cut programmes.

There is also a macroeconomic angle. International students contributed an estimated $40 billion to the US economy in the last academic year, according to the US Department of Commerce. Indian students alone account for a significant share of that spending on tuition, housing, and living expenses. A drop in enrolment would ripple through towns and cities that depend on this influx.

Some experts argue the fee could backfire in another way — pushing students to competitors. Canada, Australia, and the UK have aggressively courted international talent, offering clearer post-study work paths and lower costs. The US, with a $100,000 levy, would lose its competitive edge.

Political and legal hurdles ahead

Even if the administration pushes forward, the proposal faces a difficult path. Implementing a fee of this scale would likely require a formal federal rulemaking process, which involves public comment and legal scrutiny. Any attempt to impose it unilaterally could invite court challenges from universities, student groups, and tech companies that depend on foreign talent.

Congress may also weigh in. Immigration reform is a politically volatile issue, and a fee that hits high-skilled workers may not sit well with business-friendly Republicans who back the H-1B programme. The administration's own record on student visas has been mixed — earlier attempts to restrict OPT were abandoned after backlash from industry and academia.

The proposal is also part of a larger pattern. The administration has already tightened H-1B approvals and raised visa fees. This new levy, if enacted, would be the most aggressive move yet to monetise the student-to-work pathway.

What to watch

In the coming weeks, watch for a formal announcement or a draft rule from the Department of Homeland Security. Any timeline for public comment will signal whether the administration intends to push this through quickly or let it die quietly. Also watch how major Indian student associations and US universities respond — their lobbying could shape the outcome. For Indian students, the message is clear: the window for affordable US work experience may be closing, and alternative destinations are looking more attractive by the day.