US Government Tightens Rules on Student Work Placements

The US Immigration and Customs Enforcement (ICE) department has issued a direct warning to universities about their use of the Curricular Practical Training (CPT) program. In two memos from August 2026, ICE stated that CPT authorizations should only be granted when the work is essential for a student to complete their degree. The agency warned that schools abusing the system to create general work opportunities could lose their certification to enroll international students.

CPT allows domestic and international students to complete internships or practicums through cooperative agreements between their school and an employer. ICE's Student and Visa Exchange Programme (SEVP) has noted an increase in CPT authorizations that do not meet regulatory requirements, specifically those not integral to an established curriculum. The department cautions that if an elective course is optional, making the CPT optional, then the required aspects of CPT are not met. It states CPT should be authorized only "if its absence would make the attainment of a degree an impossibility."

The Rhetorical Warning

Although no new laws have been passed, the State Department's communications serve a dual purpose. They warn prospective international students that access to US work is uncertain and discourage universities from prominently linking academic programs to work routes in their promotions. Most universities are now pausing authorization for elective CPT programs while continuing curriculum-linked CPT. Carnegie Mellon University has described the August memos as "extra-regulatory," but they carry enforceable actions. A university seen abusing CPT could have its SEVP certification withdrawn, barring it from enrolling international students.

The guidance may particularly target institutions colloquially known as "Day 1 CPT" universities, where promoting work-integrated learning via CPT is a central business model. The critique is that these schools overuse CPT to provide a mechanism for students to maintain visa status while hoping to transition to an H-1B work visa.

A Broader Policy Shift

The CPT warnings are one layer of a broader Trump administration mission to limit opportunities for international students. A new rule replacing the Duration of Status (D/S) system with fixed Admit-Until-Date (AUD) periods comes into force on 15 September 2026. This change has created uncertainty for universities and appears to have already dampened demand, with international enrollments declining in 2025, especially in graduate programs.

A potential $100,000 fee for the post-study Optional Practical Training (OPT) program is also under discussion. Research indicates more than half of international students would not choose the US if they could not access OPT. A new rule on OPT was initially slated for 2026 but is now scheduled for publication in February 2027.

Graduate Program Crisis

In July 2026, Bloomberg reported on the effects of the administration's approach. Cornell University enrolled 209 fewer new graduate students last year, with declines across nearly all its schools. Michigan State University paused admissions to most of its advanced humanities programs for a year. The Massachusetts Institute of Technology has seen a 20% drop in federally funded research. Chevelle Newsome, president of the Council of Graduate Schools, said graduate schools are in a "crisis response" mode that "will take decades to recover from."

Legal Challenges and Elections

Important developments aim to counter the perception of diminishing work opportunities. A consortium including NAFSA and seven other educational and business organizations has filed a complaint and a motion for a preliminary injunction to halt the implementation of the fixed-term admission rule. The request for an injunction will be heard in court in early September.

The upcoming mid-term elections on 3 November 2026 may also shift the balance. Amid declining approval ratings for President Trump, most experts expect Democrats to regain control of the House of Representatives, which could increase the House's ability to counter executive actions on education and immigration.

As of 3 September 2026, the Department of Homeland Security states that CPT regulations have not changed, but warns that "schools and employers should consider themselves on notice: under President Trump, abuse of this generous system will no longer be tolerated." Current international students who have not returned to the US before 15 September will be subject to the new AUD system, despite having first enrolled under Duration of Status terms.