Attorney General Bonta Opposes Trump Administration’s Attempt to Impose Unlawful $100,000 Tax on International Students

OAKLAND — California Attorney General Rob Bonta yesterday led a multistate coalition in submitting a comment letter opposing the Trump Administration’s proposed rule that would require colleges and universities to pay up to $100,000 for each international student seeking to participate in Optional Practical Training (OPT). OPT allows international students to gain practical work experience in their fields of study following graduation, strengthening California’s workforce and economy. The proposed rule would impose significant financial burdens on institutions of higher education, discourage international student enrollment, and jeopardize the economic and educational contributions of international students. In the comment letter, Attorney General Bonta and the coalition argue that the proposed rule exceeds the Trump Administration’s legal authority, imposes an unconstitutional tax, and fails to adequately consider the substantial harms to states and educational institutions.

“We have already fought and won against this Administration’s attempt to impose an unauthorized $100,000 tax on H-1B visas, yet it continues to pursue unlawful overreach at the expense of our students, universities, and economy,” said Attorney General Bonta. “International students bring diverse perspectives, strengthen our communities, and help drive discoveries and technological advancements that benefit us all. California thrives because of the talent and opportunities we welcome from around the world. We will continue to stand against the Trump Administration’s attacks on immigrant communities and defend the opportunities that make our state stronger.”

BACKGROUND

OPT allows international students studying in the United States on F-1 visas to gain practical work experience related to their fields of study. Students are generally eligible for 12 months of OPT, with qualifying graduates in science, technology, engineering, and mathematics (STEM) fields eligible for an additional 24-month extension. On October 8, 2026, the U.S. Department of Homeland Security (DHS) published a proposed rule that would require institutions of higher education to pay $70,000 for each international student they initially recommend for OPT and an additional $30,000 for a subsequent recommendation, including a STEM OPT extension. Although the proposed rule would allow institutions to seek reimbursement from students or employers, it would require institutions to transmit the payments to DHS.

The proposed rule is the latest in a series of Trump Administration efforts to impose extraordinary taxes on immigration and employment programs. Rather than targeting corporations that could abuse these programs, the Trump Administration’s efforts create significant financial burdens on public institutions and employers. In December 2025, Attorney General Bonta led a multistate coalition in challenging the Administration’s $100,000 tax on new H-1B visa petitions, which made it exceedingly difficult for public employers like school districts, medical facilities, and higher education institutions to fill critical positions. In June 2026, Attorney General Bonta secured a final judgment finding the tax unconstitutional and striking it down. Despite that ruling, the Administration has continued pursuing similar taxes on programs that allow the United States to attract and retain skilled international talent.

California’s institutions and economy stand to suffer significant harm from the proposed OPT rule. During the 2024-2025 academic year, international students contributed $6.3 billion to California’s economy and supported more than 52,000 jobs. By making OPT participation prohibitively expensive, the proposed rule threatens to drive international students away from California’s institutions and diminish educational opportunities for all students.

In the comment letter, Attorney General Bonta and the coalition urge DHS to withdraw the proposed rule, arguing that the proposed rule:

• Imposes extraordinary financial burdens on colleges and universities: With more than 294,000 students participating in OPT nationwide during the 2024-2025 academic year, maintaining current participation levels could cost institutions $12.9 billion annually, effectively forcing many to stop recommending students for OPT.
• Harms California’s educational institutions and economy: By discouraging international student enrollment, the rule would threaten billions in economic contributions, reduce tuition revenue, weaken the diversity of academic environments, and deprive our communities of individuals who contribute to research, innovation, and economic growth.
• Exceeds DHS’s legal authority and imposes an unconstitutional tax: DHS incorrectly characterizes the proposed payment as a fee when it is, in fact, a tax that Congress has not authorized under the Immigration and Nationality Act. As with the Administration’s previously invalidated $100,000 H-1B tax, the proposed payment exceeds DHS’s fee-setting authority and unlawfully intrudes on Congress’ taxing power.
• Violates the Administrative Procedure Act: DHS fails to adequately consider the financial and economic consequences for states and educational institutions, disregards the benefits of OPT participation, and fails to consider less harmful alternatives.
• Failed to provide sufficient time for public comment: Despite the sweeping consequences of a proposal estimated to require institutions to pay billions of dollars annually, DHS provided only 30 days for public review and comment without adequate justification.

The comment letter was led by Attorney General Bonta and joined by the attorneys general of Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, Nevada, North Carolina, Oregon, Rhode Island, Vermont, Virginia, Washington, and Wisconsin.

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