The NAFSA: Association of International Educators report projected that the decline in enrolment of international students could lead to a loss of $3.4 billion in local spending and hit an estimated 39,000 jobs.
As per the report by NAFSA and research firm JB International, the registration of international students in Fall 2025-26 was an estimated 11.69 lakh, which has declined to 10.57 lakh this year.
India is the largest source of international students in the US, with over 3.63 lakh enrolling for different courses in the 2024-25 academic year.
According to the report, international students contributed $41.77 billion to the local economy in the Fall 2025-26. The same number is projected to be at $38.37 billion in 2026-27.
“The projections underscore what we’ve long warned: US policy and regulations affect where international students plan to invest their future — and their decisions carry significant short- and long-term consequences for US society and economy,” said Fanta Aw, Executive Director and CEO of NAFSA: Association of International Educators.
Besides stricter travel policies, the Department of State’s priority to issue visas for the FIFA World Cup ticket holders over students also hit international enrolments at universities.
Historically, the Department has prioritised student and scholar visa applications during this peak season, helping ensure timely campus arrivals, the report noted.Last year, the government restricted visitors from dozens of countries, such as Afghanistan and Yemen, citing security concerns.
Last month, the Department of Homeland Security finalised a rule that will bar international students from staying in the US for longer than four years without an extension.
The change in rule could create challenges for students in lengthy doctoral programs or those who hoped to remain in the US for temporary work after school.
“All Americans lose when international students and scholars are driven to more welcoming countries. Forfeiting the US position as the top destination for global talent hurts students, hospitals, research laboratories, the economies – and carries the real risk that the next big invention will not happen on US soil,” the NAFSA official said.
Graduate-level enrollment declines are the primary driver of economic losses, particularly among institutions with the largest international student populations, the report said.