Immigration actions in 2025–26 rattle U.S. universities, with projected $7 billion hit

A sweeping set of immigration actions in 2025 and early 2026 has shaken U.S. higher education, with campus leaders warning of deep financial and academic fallout. Universities that long relied on international students and scholars for research and revenue now face mass status terminations, tighter screening and new restrictions.
Estimates from NAFSA point to a 30–40% decline in new international enrollments, an overall 15% drop in enrollment, $7 billion in lost revenue and 60,000 fewer jobs. According to the Presidents' Alliance on Higher Education and Immigration, the Trump administration has shifted from case-by-case adjudication to mass enforcement.
Since mid-March, thousands of students have had their SEVIS records terminated, ending their legal status overnight. The Presidents' Alliance filed an amended complaint in Massachusetts arguing the mass terminations violate due process. Separately, Secretary of State Marco Rubio’s “one-strike” proposal in early May 2025 targeted temporary visa holders accused of violating the law.
Later that month, a directive called for aggressive visa revocations for Chinese students, an action President Trump paused in June as part of a trade agreement with China. Pathways from study to work have narrowed. OPT applicants from 39 countries face an indefinite pause in adjudications, leaving many unable to work or maintain status.
The administration’s most disruptive proposed change, advocates say, would eliminate “Duration of Status” by limiting visas to four years and requiring extensions for longer programs. The Presidents’ Alliance opposes the proposal, arguing it would harm U.S. research.
Screening has also tightened. After a Harvard pilot, expanded social media vetting for all F, M and J visa applicants began in June 2025. Around the same time, a travel ban was expanded to 39 countries and the Palestinian territory, followed by a June 4, 2025, executive order barring students from 19 nations—including Iran, Libya and Somalia—from obtaining visas.
A pause of three weeks in visa interview scheduling during peak admissions compounded the disruption. Legal challenges have proliferated, with more than one hundred lawsuits filed. The Presidents’ Alliance has led several efforts, including an amicus brief in AAUP v.
Rubio and a lawsuit challenging the SEVIS terminations. Courts have issued limited relief: a Maryland District Judge ordered USCIS to resume processing green card applications for 83 immigrants, and a California judge directed the agency to adjudicate work authorization for Iranian and Sudanese students.
Those rulings applied only to the individual plaintiffs. Amid the uncertainty, campus leaders are being urged to act. Recommended steps include convening crisis response teams, conducting scenario planning, strengthening communications with international students and using financial modeling to assess and reduce risks.
The Presidents’ Alliance has circulated resources—including a toolkit, an FAQ on SEVIS terminations and a video with former ICE counsel Kerry Doyle—highlighting best practices such as rapid-response teams and proactive messaging about status changes or policy updates.
Administrators say these measures can reduce confusion, support compliance and protect student health. The impact varies across institutions, but the direction is clear: policies and proposals adopted over 2025 and into 2026 have reshaped the value proposition for studying and working in the United States.
With litigation ongoing and additional policy shifts possible, university leaders are planning for multiple outcomes in an effort to safeguard their academic missions.
