Visa restrictions cause 17% decline in US international student numbers, impacting economy significantly
New international student enrolment at US colleges fell sharply this fall, potentially costing the economy nearly $1 billion, according to multiple reports. The decline comes amid ongoing visa restrictions and changes in government policies affecting foreign students. The fall 2025 semester saw a 17% drop in new international student enrolment, according to a snapshot from the US Department of State and the Institute of International Education (IIE). Overall, international students contributed nearly $55 billion to the US economy during the 2024-25 academic year, including tuition and living expenses, highlighting the scale of the economic impact.
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Visa restrictions and policy changes affect enrolment The sharp decline in new students is largely linked to the Trump administration’s adjustments to student visa policies.
“Fewer new international students are choosing to study in the US because of policy uncertainty and visa restrictions,” Bjorn Markeson, an economist at Implan, said in conversation with CNBC. He added that these students support thousands of jobs and local businesses, generating tax revenue for community services. Before the policy pause on new visa applications earlier this year, there were nearly 1.2 million international undergraduate and graduate students in the US, mainly from India and China.
They made up about 6% of the total higher education population, according to IIE’s Open Doors report. Economic consequences of declining student numbers NAFSA: Association of International Educators projects that the drop in enrolment will cost the US economy $1
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