US proposes $70K fee to allow foreign students to work

Cayman students who are not US citizens and hope to gain work experience in the United States after graduation could face a significant financial barrier under a new Trump administration proposal to charge universities US$70,000 for each international student entering a widely used post-graduation employment programme.

The US Department of Homeland Security announced the proposed fee on Wednesday, 7 Oct., as part of a broader effort to tighten immigration controls and restrict foreign participation in the American workforce.

The measure targets Optional Practical Training, a programme that allows international students to work in the US in positions directly related to their field of study, generally for up to 12 months. Students pursuing degrees in science, technology, engineering and mathematics may qualify for extensions.

Under the proposal, universities and colleges would be required to pay US$70,000 for a student’s initial participation in Optional Practical Training, followed by an additional US$30,000 for each subsequent participation.

Although the fees would be imposed on educational institutions, the Department of Homeland Security acknowledged that universities could pass the costs on to students or their prospective employers.

The proposal, published in the Federal Register on Thursday, 8 Oct., is open for public comment until 9 Nov. It has not yet taken effect.

Implications for Cayman students

The changes could affect Cayman students pursuing higher education in the US.

According to the latest Open Doors international education figures, 164 students from the Cayman Islands were enrolled at US institutions during the 2024-25 academic year, up from 157 the previous year.

Across the Caribbean, enrolment rose from 11,780 to 12,508 students over the same period.

US Department of State data indicates that 86.6% of Caymanian students studying in the country are enrolled in undergraduate programmes.

While figures showing how many Caymanian students currently participate in Optional Practical Training were not available, regional data suggests that the programme has become an increasingly important pathway for international graduates seeking American work experience.

Nearly 16% of Latin American and Caribbean students in the US participated in Optional Practical Training during the 2023-24 academic year.

Sharp decline in interest predicted

A survey released 8 Oct. by Washington, DC-based think tank Institute for Progress suggests the proposed fees could substantially reduce international students’ interest in remaining in the US after graduation.

The survey of 734 international students found that most intended to use Optional Practical Training, but the proportion indicating they would likely attempt to remain in the country was 80% lower under a scenario in which the proposed fees were implemented.

Of those surveyed, 71 respondents, or 9.7%, were citizens of Latin American or Caribbean countries.

DHS has defended the proposed charges as necessary to strengthen oversight of the programme, which it claims has expanded beyond its original purpose.

The department described Optional Practical Training as having become an “uncontrolled guest worker pipeline” and a “magnet for fraud”.

The department reported that 194,554 students received employment authorisation documents in 2024, compared with 160,627 in 2023, an increase of approximately 21%.

International student restrictions tighten

The proposal follows a series of immigration measures that have made it more difficult for some international students to obtain permission to study in the United States.

Some measures have included closer scrutiny of applicants’ online activity, enhanced vetting requirements and increased screening of certain nationalities and fields of study.

US officials have defended the restrictions on national security grounds, with a State Department spokesperson emphasising that entry into the country “is a privilege – not a right.”