Foreign students added $43 bn to US economy, supported 355,000 jobs in FY25

International students generated $42.9 billion for the US economy in 2024-25, but new enrolments have dropped sharply amid visa delays, policy uncertainty and pressure to curb post-study work routes

International students at US colleges and universities contributed $42.9 billion to the US economy and supported more than 355,000 jobs in the 2024–25 academic year, according to a report released by NAFSA: Association of International Educators in partnership with JB International on November 17.

 

This marks a 2 per cent drop from the record levels recorded in 2023–24 and the first decline seen since the early pandemic years, when student mobility took a hit. Last year’s slowing growth already suggested that the pace was weakening.

 

Turning to the current academic year, NAFSA and JB International estimate that economic contributions from international students this autumn fell by $1.1 billion. The organisations say this has resulted in the loss of nearly 23,000 jobs. Their assessment draws on the Fall 2025 International Student Enrollment Snapshot published by the Institute of International Education (IIE), which reported a 17 per cent fall in new international student enrolments.

 

 

The findings come at a moment when supporters of President Donald Trump have been urging the administration to reduce the number of foreign students and curb post-study work options such as Optional Practical Training.

 

Why are international enrolments falling?

 

The IIE report points to several factors contributing to the decline. These include delays in visa processing, concern over changes linked to Duration of Status, and uncertainty around Optional Practical Training (OPT). These issues have disrupted the traditional flow of overseas students arriving at US campuses this autumn.

 

“A close read of enrollment figures from last year and this fall shows that the pipeline of global talent in the United States is in a precarious position,” said Fanta Aw, NAFSA executive director and CEO. “If you exclude those international students who were engaged in post-graduation Optional Practical Training last year—which, at 25 per cent, is the largest share of total enrollment ever—and this fall, there are alarming declines that we ignore at our own peril. Other countries are creating effective incentives to capitalise on our mistakes. The United States must adopt more proactive policies to attract and retain the world’s best and brightest and recognise that post-study work opportunities are essential to our standing as the top destination for global talent. Otherwise, international students will increasingly choose to go elsewhere—to the detriment of our economy, excellence in research and innovation, and global competitiveness and engagement.”

 

What does the economic data show?

 

NAFSA’s research outlines several points that show how international students continue to influence the US economy. For every three international students, one US job is created or supported across sectors such as higher education, housing, dining, retail, transport, telecoms and health insurance. Community colleges saw international student contributions rise for the third consecutive year, with $2.2 billion in activity and support for more than 9,000 jobs. English language programme enrolments generated $393.3 million, up 5.7 per cent, but still 44 per cent below pre-pandemic levels. California, New York, Massachusetts, Texas and Illinois recorded the highest levels of economic activity, unchanged from last year’s list.

 

More detailed data for the 2024–25 academic year, including state and district-level analysis, is available on NAFSA’s website.

 

The analysis uses enrolment data from the 2025 Open Doors report, tuition and expense figures from the US Department of Education’s National Center of Educational Statistics and other academic data sources, and job-creation data from the US Department of Commerce.

 

What does NAFSA want the US government to do?

 

NAFSA has outlined several policy steps it believes could help stabilise enrolments. These include improving visa availability and processing for F and M students and J exchange visitors, exempting these groups from travel bans affecting nationals from 19 countries while continuing standard vetting, protecting access to Optional Practical Training, and retaining the current Duration of Status policy.

 

The group has also urged Congress to pass the Keep STEM Talent Act, along with provisions in the Dignity Act that extend dual intent and create a route to a green card for F-1 students.