Washington, November 11, 2026 (Yes Punjab News)
A coalition of US state attorneys general, led by California, has urged the federal government to withdraw a proposed fee structure that could require universities to pay up to $100,000 for recommending international students for post-study work training.
California Attorney General Rob Bonta said on Tuesday that the coalition had submitted formal objections to the Department of Homeland Security (DHS), arguing that the proposal could discourage international students from choosing American universities and undermine the country’s economy.
The proposed rule, published on October 8, targets the Optional Practical Training (OPT) programme, which allows foreign students holding F-1 visas to gain work experience in fields related to their studies.
Under the plan, colleges and universities would have to pay $70,000 when first recommending a student for OPT and an additional $30,000 for a subsequent recommendation, including an extension available to eligible graduates in science, technology, engineering and mathematics (STEM) fields.
Although institutions would formally make the payments to DHS, they could seek reimbursement from students or employers, potentially passing the financial burden on to graduates entering the job market. The proposal has not yet taken effect.
Bonta accused the administration of regulatory overreach, saying it was continuing to pursue measures that could hurt students, universities and employers despite an earlier legal challenge over a proposed $100,000 H-1B visa charge.
The coalition contends that DHS lacks congressional authority to impose the charges, describing them as a tax disguised as a fee. It also argues that the proposal violates the Immigration and Nationality Act and the Administrative Procedure Act because the department failed to adequately assess its wider financial impact.
The attorneys general have questioned the 30-day public consultation period, saying it is insufficient for a measure with potentially far-reaching consequences.
More than 294,000 international students participated in OPT across the US during the 2024-25 academic year. Maintaining participation at that level under the proposed charges could cost educational institutions an estimated $12.9 billion annually.
The coalition warned that the financial burden could prompt universities to stop recommending students for OPT, reduce international enrolment and weaken their ability to attract skilled graduates.
The proposal is particularly significant for Indian students considering higher education in the US, as OPT provides an important route to gain professional experience after graduation. Although universities would be responsible for the initial payments, they could recover the costs from students or employers.
Bonta highlighted California’s dependence on international talent, saying foreign students contributed $6.3 billion to the state’s economy and supported more than 52,000 jobs during the 2024-25 academic year.
Attorneys general from New York, New Jersey, Maryland, Massachusetts, Michigan, Illinois, Washington and Virginia joined California’s submission. The District of Columbia was also among the signatories.
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