India was the largest source of international students in the US in the 2024-25 academic year, with more than 3.63 lakh Indian students enrolling in US institutions. (Image: AI generated)The US has proposed a $70,000 fee on educational institutions for international students participating in the Optional Practical Training (OPT) programme for the first time, a move that could have affect Indian students seeking to study and work in the country after graduation.The Department of Homeland Security (DHS), in a proposed rule issued on Wednesday, said educational institutions would have to pay $70,000 for a student’s first participation in OPT. For every subsequent renewal, institutions would be required to pay a $30,000 fee.The OPT programme allows international students on F-1 visas to work in the US after completing their studies. Students are generally eligible to work for up to one year in jobs related to their field of study, while those graduating in science, technology, engineering and mathematics (STEM) fields can receive an extension taking the total period to three years.Read | Over 50% of US colleges report drop in international applications as visa delays hit India, ChinaThe proposal comes amid growing political opposition in the US to programmes that allow international students to work after graduation, with critics arguing that such schemes enable foreign workers to compete with American workers.India has been the largest source of international students in the US. In the 2024-25 academic year, over 3.63 lakh Indian students enrolled in US institutions.According to a recent Common App report, international students contributed an estimated $41.77 billion to local economies in the fall of 2025-26. The contribution is projected to decline to $38.37 billion in 2026-27.Story continues below this adData cited by NAFSA and research firm JB International also showed a decline in international student enrolment in the US, from an estimated 11.69 lakh in 2025-26 to 10.57 lakh this year.Also read | 56% of Indian students going abroad now come from state boards, leave CBSE behindThe DHS said the proposed fee was aimed at addressing fraud and abuse in the OPT programme, which it described as having become a “pipeline for cheap foreign labour”.“Optional Practical Training was never meant to be a back door into the American workforce, a subsidy for cheap labour, or a prize for those who game the system,” a DHS spokesperson said.Story continues below this adThe department said its Student and Exchange Visitor Program (SEVP) had identified alleged exploitation involving designated schools and officials, employers and F-1 students. These included problematic worksites and “pay-to-stay” arrangements, under which students allegedly maintain their visa status without undertaking legitimate employment or training.The proposal will be open for public comments for 60 days before DHS decides whether to finalise and implement the rule. It could also face legal challenges from higher education groups and business associations.