Foreign Students Add $43 Billion to US Economy in FY25 Despite Sharp Drop in New Enrolments

International students continue to be a major economic force in the United States, contributing $42.9 billion to the economy and supporting more than 355,000 jobs in the 2024–25 academic year, according to new data released by NAFSA: Association of International Educators and JB International.

However, behind these big numbers lies a worrying trend — new international student enrolments have plunged by 17%, marking the first decline since the early pandemic years.

Massive Economic Impact, Slowing Growth

Despite the dip, international students remain a cornerstone of the US education economy. For every three foreign students, one US job is created or supported across sectors including:

Higher education

Housing

Retail

Transportation

Telecom

Health insurance

Community colleges saw a positive uptick, generating $2.2 billion and creating over 9,000 jobs, while English language programs contributed $393 million, still far below pre-pandemic levels.

The states that gained the most include:

California, New York, Massachusetts, Texas, and Illinois.

Why Are Enrolments Falling?

The steep drop in new arrivals is linked to several bottlenecks and policy uncertainties:

Visa processing delays

Concerns over changes to Duration of Status rules

Anxiety around the future of Optional Practical Training (OPT)

Calls from Trump-aligned policymakers to limit foreign student intake and restrict post-study work options

NAFSA warns that if students currently on post-graduation OPT — which makes up 25% of all international enrolments — are excluded, the decline is even more alarming.

FY25 Fall Semester Losses

This fall alone, NAFSA estimates the US economy lost $1.1 billion and nearly 23,000 jobs due to shrinking international student numbers.

What NAFSA Wants from the US Government

To prevent further decline and strengthen America’s position as a global education hub, NAFSA is urging the government to:

Speed up visa issuance for F, M, and J visas

Exempt students from travel bans currently affecting 19 countries

Preserve Optional Practical Training (OPT)

Retain the current Duration of Status policy

Pass the Keep STEM Talent Act

Support green card pathways for high-skilled foreign graduates

NAFSA warns that other countries are already benefiting from US barriers by offering smoother immigration, post-study work, and long-term residence routes.