International Students Boost US Economy by $44B—But Enrollment Declines Threaten Future Growth

International students added $42.9 billion to the US economy in the 2024–25 academic year, supporting over 355,000 jobs nationwide, according to a report by NAFSA: Association of International Educators and JB International. However, new international student enrolments dropped by 17 percent this fall due to visa processing delays, policy uncertainties, and restrictions on post-study work opportunities like Optional Practical Training (OPT), leading to an estimated loss of $1.1 billion in economic activity and nearly 23,000 jobs.

The report highlights that international students remain vital to the US economy, stimulating sectors beyond education, including housing, dining, retail, transportation, and health insurance. For every three international students, one US job is generated or supported. Community colleges have seen a steady rise in international student contributions, with $2.2 billion in economic activity and over 9,000 jobs supported. Despite overall declines, major states such as California, New York, Massachusetts, Texas, and Illinois continue to register the highest levels of activity driven by international students.

The decline in enrolments is attributed to multiple factors including visa bottlenecks, uncertainty around the Duration of Status policy, and concerns about access to OPT programs. These hurdles disrupted the traditional student pipeline, causing universities to face funding and diversity challenges. Fanta Aw, CEO of NAFSA, warned that without proactive government policies to secure visa availability, safeguard post-study work rights, and pass legislation like the Keep STEM Talent Act, the US risks losing its competitive edge in attracting global talent.

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NAFSA recommends improving student visa processing, exempting certain visa holders from travel bans, protecting OPT access, and maintaining current regulations that enable international students to stay and work after graduation. The association also urges Congress to create pathways to permanent residency for eligible F-1 students to encourage long-term retention. Failure to address these issues could lead to further enrollment declines, economic losses, and diminished innovation and research capacity.

With international student numbers still totaling over 1.18 million despite recent drops, the sector remains a critical pillar of the US higher education ecosystem and economy. However, the current obstacles emphasize the urgent need for comprehensive policy reforms to restore confidence and rebuild durable global student flows that fuel economic growth and cultural exchange.

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