The Trump administration’s crackdown on student immigration comes with a cost that not only affects American campuses but also the local economies.
A new report from the Institute of International Education finds that the number of new international college students in the United States has plunged by 17 percent this fall, even as domestic enrollment continues to rise. It translates into an estimated $1.1 billion hit to the U.S. economy and the loss of roughly 23,000 jobs nationwide.
International students contribute a lot to the economy by paying full tuition at many schools, renting apartments, buying food and laptops, and often bringing their families to visit. When those students stop coming, the financial damage has a ripple effect across many industries.
The steep decline coincides with a series of Trump administration policies that have made studying in the United States harder and more uncertain for international students.
According to the report’s analysis, schools have been urged, formally and informally, to limit the number of foreign students they admit. A 19 country travel ban that has been in effect for about six months has paused student visa interviews and triggered outright cancellations of some visas, turning what used to be a long but manageable process into a bureaucratic minefield. For students overseas, especially those from targeted regions, getting to an American campus suddenly looks like a gamble.
University admissions offices say growing numbers of students and parents are worried about their long-term prospects. Many worry about whether they’ll be able to finish their degrees if immigration rules shift again. Some prospective students are quietly looking elsewhere, turning to Canada, the United Kingdom, or countries where the political climate toward international students remains calmer.
The economic impact isn’t hitting everyone equally. Smaller colleges and regional public universities that relied on full-tuition international students to keep their budgets steady are feeling the pain the most. Some schools have already announced hiring freezes or cut programs because fewer foreign students are enrolling. In college towns where the campus is the main source of jobs, those decisions spread outward, leaving local businesses struggling to stay afloat.
Supporters of the crackdown argue that limiting foreign students opens up more space and resources for Americans. But the numbers undercut that talking point because domestic student numbers are still rising, which means international enrollment is not crowding anyone out. Instead, those students were adding revenue that helped subsidize programs, financial aid, and facilities used by everyone. When that money disappears, the gap has to be filled by higher tuition, state funding that may not materialize, or cuts.
For now, the administration shows little sign of changing course. The travel restrictions and tougher vetting remain central to Trump’s policies.
But the new data from the Institute of International Education make one thing clear: Trump’s student crackdown has economic consequences. And at the moment, that decision is costing the United States more than a billion dollars and tens of thousands of jobs, all while rival nations roll out the welcome mat for the young talent America is turning away.
