US: Climate of uncertainty continues for international students amid legal action on internships and a proposed $70,000 OPT fee

8th Oct 2026 US: Climate of uncertainty continues for international students amid legal action on internships and a proposed $70,000 OPT fee

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A consortium of sector stakeholders is suing the US government over recent guidance that has curtailed Curricular Practical Training placements for international students

The plaintiffs claim that the administration sidestepped a proper rulemaking process to threaten or potentially impose sanctions on US institutions, and they are seeking to have the longstanding CPT framework restored

The Department of Homeland Security has also issued a notice of proposed rulemaking, with the proposed rule to be officially published on 8 October

The rule sets out a US$70,000 fee for Optional Practical Training, with an additional US$30,000 levy for OPT extensions

Given the importance of OPT to international students in the US, it seems likely that it too will be robustly challenged

In two broadcast memos issued in August 2026, the Immigration and Customs Enforcement department (ICE) clearly signalled that it is now applying greater scrutiny to Curricular Practical Training (CPT) placements .

CPT allows a student to complete an internship or practicum offered by a sponsoring employer through a co-operative agreement with the student’s school, and ICE says that the Student and Visa Exchange Programme (SEVP) is showing an uptick in “CPT authorisations that do not meet regulatory requirements, specifically those not constituting an integral part of an established curriculum.” The agency warned that if institutions are suspected of using CPT inappropriately – namely to create work opportunities rather than for the sake of academics – then they could be subject to additional action, including the "potential withdrawal of the school’s SEVP certification.” The fallout from those memos was immediate with many institutions around the country promptly pausing their authorisation of elective CPT programmes. Back to court The matter has now entered the legal arena with notice this week of a lawsuit brought by several sector stakeholders.

On 5 October, the Association of American Universities (AAU), Presidents’ Alliance on Higher Education and Immigration, NAFSA, and the Association of Independent Colleges and Universities in Massachusetts filed a legal action against ICE, the Department of Homeland Security, and the Department of Justice. The lawsuit sets out: "On the eve of a new academic year and semester, [DHS] abruptly changed a position that the federal government had held for more than thirty-five years and sharply restricted international students’ access to internships and other hands-on learning opportunities – all while simultaneously threatening college and university officials with criminal prosecution for approving enrolments consistent with the government’s prior longstanding policy.

This sudden change was issued with no substantive explanation, opportunity for comment, or even acknowledgement of the change, but with maximal impact on affected students and institutions."

The filing goes on to argue that "DHS’s actions should be promptly stayed and enjoined given their many legal flaws and the ongoing harms they inflict on colleges and universities, their officials, and their students." “We are going to court to protect our students and institutions,” said Presidents’ Alliance President and CEO Miriam Feldblum. “ICE’s broadcast messages announced a change to longstanding CPT requirements and threatened serious consequences for campus staff and institutions.

Colleges and universities across the country have paused or halted CPT authorizations, and students have already lost internships and other placements. We are asking the court to act swiftly to stop the government’s actions and restore the longstanding CPT framework that campuses and international students have relied on for decades to plan academic programs and practical training.”

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“Changing how CPT is administered through broadcast messages, without formal rulemaking, is an aberration that must be challenged,” added NAFSA Executive Director and CEO Fanta Aw. “These abrupt changes have placed Designated School Officials – the professionals responsible for advising international students and ensuring institutional compliance – in an untenable position, forcing them to navigate significant new restrictions and uncertainty without the clarity and due process that formal rulemaking provides.

Hands-on, experiential learning is a hallmark of a US education, and restricting access to it in this way is already disrupting opportunities for international students. The consequences extend well beyond individual students and campuses.

Driving away international student talent will have long-term consequences for US research, innovation, workforce development, and global competitiveness.” The plaintiffs say they are seeking to restore the longstanding CPT framework, and, in so doing to protect students and institutions from retroactive penalties and ensure that meaningful training opportunities remain available to visiting students. The $70,000 question On 7 October, the Department of Homeland Security proposed a dramatic fee increase for participation in Optional Practical Training (OPT).

Reports have been circulating of a possible increase for some months now, and, in a notice of proposed rulemaking DHS has put forward a plan for a US$70,000 fee for each student seeking OPT. Those students who are eligible to continue after an initial OPT term, such as STEM graduates, would need to pay another US$30,000.

The proposal sets out that the fee would be paid by each student's university, which could in turn be recovered from employers and/or students. This is, needless to say, a significant increase and change in practice from the current fee of US$500 which is typically paid directly by the student.

The proposed rule will be published in the Federal Register on 8 October, at which point a 30-day comment window will open. The rule will not take effect until DHS reviews those public comments and subsequently publishes a final rule.

The 7 October notice claims that the new rule is needed to combat fraud and abuse of the OPT programme, stating that: "With the increased number of F-1 nonimmigrant students being recommended by DSOs for OPT, SEVP has encountered more institutions, DSOs, employers, and F-1 nonimmigrant students engaged in schemes to exploit the current OPT regulations for fraudulent purposes. Reports indicate that there has been widespread use of OPT as an informal and unlimited employment benefit that has little to or no relationship to an F-1 nonimmigrant student’s program of study.

This has resulted in DHS devoting significant resources to identifying and investigating cases in which improper OPT authorisation has been used to facilitate F-1 nonimmigrant student visa fraud. The egregious cases of fraud and abuse of OPT57 demonstrate that additional action is needed to combat such problems." Commenting on the proposed rule, Dr Aw said: “Imposing this new fee structure on Optional Practical Training is the latest in a series of developments that creates deep uncertainty for international students.

OPT enables international students to gain the same hands-on experience as their domestic peers while filling labor shortages in high-demand STEM fields and generating jobs for US workers on US soil. The research is clear: international students don’t take opportunities from Americans, they create them.

Driving away the talents, perspectives, and aspirations of international students will only hurt American innovation, economic growth, workforce development, and global leadership. Together with our members across the country, we will mobilise detailed comments outlining the issues with the proposed rule.” It is hard to overstate the importance of OPT to the experience of foreign students in the United States.

More than 294,000 students participated in OPT in 2024/25 – representing about one in four international students in the country at the time. This was a 21% increase over the previous year.

Any measures that limit access to OPT will necessarily reset the calculation of return on investment for study in the US – so much so that a strong majority of students in recent surveys have said they would not choose to study in the United States if they could not access OPT. "If [the proposed rule] is finalised and implemented, it would represent another significant obstacle to the process of hiring foreign professionals, particularly those in the early stages of their careers," says an early analysis from immigration law firm Fragomen.

"The proposed OPT fee is the latest initiative by the Trump Administration to significantly increase the costs associated with employing foreign nationals. It follows in the wake of the recently extended US$100,000 fee for H-1B petitions filed or only approvable for consular notification (currently blocked pending further litigation) and the proposed US$103,265 filing fee that would apply to H-1B cap petitions, and one reason cited by DHS for the proposed US$70,000 and US$30,000 OPT fees was to deter employers from trying to circumvent the new and proposed H-1B fees by employing foreign nationals on OPT." For additional background, please see:

" US government warns universities to limit their authorisation of Curricular Practical Training work placements "

" Report: US considering a $100,000 fee for Optional Practical Training "

" US court grants preliminary injunction to block rule that would have ended Duration of Status admissions for international students "

Tags Costs of Study and Living Abroad Finance Higher Education Immigration Immigration Processes and Rules North America United States US Visa Information Visas Work Abroad Work Rights

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