US Considers $100,000 Fee on OPT Program, Impacting Indian Students
UPSC / SSC current affairs note · Economy
Why in news
The Trump administration is reportedly considering a $100,000 fee on the Optional Practical Training (OPT) program, which allows foreign students to work in the US after graduation. This move comes after a similar fee on H-1B visas was struck down by a federal court. If enacted, it could affect over 360,000 Indian students and major tech and finance firms.
Background
In 2024, around 419,000 foreign students were working under the OPT program in the US. Last year, the Trump administration hiked H-1B visa fees to $100,000, but a federal judge in Boston struck it down in June, and an appeals court upheld that decision last week.
Key facts
The Trump administration is considering a $100,000 fee on the OPT program, which provides temporary employment related to an F-1 student's major.
OPT allows students to work in the US for one to three years after graduation, depending on their course.
The fee could impact over 360,000 Indian students in America.
In 2024, around 419,000 foreign students were working under the OPT program in the US.
The H-1B visa fee of $100,000 was struck down by a federal judge in Boston in June, and an appeals court upheld that decision last week.
The new fee could impact top IT and finance firms that hire foreign students from American universities and convert their visas to H-1B.
It is not yet clear whether students or employers would pay the fee.
The move is seen as a way to curb legal migration, similar to the proposed H-1B fee.
Prelims pointers
- OPT: Optional Practical Training program for F-1 visa holders.
- F-1 visa: Student visa for academic studies in the US.
- H-1B visa: Work visa for specialized occupations.
- The fee proposal is reported by the Wall Street Journal.
- Federal court in Boston struck down the H-1B fee.
- Year: 2026 (current year in context).
Mains angles
- Discuss the impact of US immigration policy changes on Indian students and professionals.
- Critically examine the economic and diplomatic implications of such fees on India-US relations.
- Analyze the role of legal migration in the US economy and the potential consequences of restrictive policies.