Statements and policies from Donald Trump’s administration targeting a reduction in international students in the U.S. have sparked concern among American higher education institutions. These universities increasingly rely on the high tuition fees paid by international students due to declining federal and state support, putting their financial stability at risk. Economists warn that the impact could extend beyond universities, affecting the broader U.S. job market and economy. Michael Lovenheim, a labor economics professor at Cornell University, explains that international students contribute not only to personal benefits through higher wages but also to economic sectors that drive growth, found companies, and participate in high-growth industries, boosting productivity and GDP. According to NAFSA, international students contributed $43.8 billion to the U.S. economy and supported over 378,000 jobs in various sectors during the 2023-2024 academic year. Giovanni Peri at the University of California–Davis noted that uncertainty around visas and funding has already led some students to choose countries like the UK over the U.S., impacting research funding and the country’s status as a top academic destination. Peri warns that fewer international students could mean fewer new businesses, scientists, and engineers, slowing regional job growth and income.
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