Each year, more than a million international students attend colleges across the United States, contributing an estimated $44 billion to the US economy through tuition fees, housing, transportation, and daily expenses. Beyond this massive financial input, these students are also central to America's scientific leadership and technological innovation, according to experts and reports by the Washington Post.

Economic and Scientific Contributions of International Students

The presence of international students enriches the US higher education landscape profoundly. Many international students fill graduate programmes in science, technology, engineering, and mathematics (STEM) fields, supporting research and innovation in cutting-edge technologies. Their contributions not only boost the economy but also help maintain high-level academic offerings that benefit American students as well. By participating in advanced labs and research teams, they enhance the overall quality and competitiveness of US universities.

According to NAFSA, an authoritative body on international education, Harvard’s international students alone added approximately $384 million to the local economy during the last academic year. This figure highlights the significant economic role played by foreign students beyond tuition fees — in housing, retail, transportation, and other local services.

The US Department of Homeland Security vs Harvard

However, the Trump administration recently escalated its crackdown on elite universities by revoking Harvard’s certification to admit foreign students. This unprecedented move came amid allegations that Harvard allowed antisemitism on campus and ran diversity and inclusion programmes opposed by the administration. Harvard filed a lawsuit, leading to a federal judge temporarily blocking the decision, but the incident sent waves of uncertainty through academic communities.

Some international students have already experienced visa cancellations or detentions, especially after participating in pro-Palestinian protests. This heightened scrutiny signals a larger political campaign targeting top-tier universities and raises concerns about the future environment for international students in the US.

Impact on STEM Programmes and Enrollment

The National Foundation for American Policy (NFAP) estimates that about 70% of graduate students in electrical engineering and computer science are international. A sudden drop in international student enrollment would force universities to reduce class sizes, scale back programmes, or cut offerings, significantly impacting STEM education in the US.

Research indicates that undergraduate enrollment could fall by around 2%, while graduate enrollment may decline by as much as 11% over the next decade if international students were banned or discouraged from studying in the US. This reduction would not only diminish academic diversity but also limit innovation capacity at a time when global competition for scientific leadership is intense.

International Students as Drivers of US Innovation

Many international students do not just study in the US; they go on to found startups or join leading technology companies. Approximately 25% of billion-dollar startups in the US have at least one international student founder. These students bring a unique blend of risk-taking mentality, entrepreneurship, and strong STEM skills, which are essential to keeping the US innovation ecosystem vibrant and globally competitive.

Global Influence and Diplomatic Bridges

Beyond the campus and corporate walls, international students serve as diplomatic and economic bridges between the US and their home countries. When they return home, they carry knowledge, experiences, and connections that strengthen bilateral ties and foster global cooperation. As Fanta Aw of NAFSA explains, they are “our strongest bridges to other countries,” crucial in an interconnected world.

Without these students, the US risks not only losing tuition revenue and talent but also diminishing its soft power and influence globally.

The Harvard Case as a Warning Sign

Harvard’s ongoing legal battle with the Trump administration is likely just the beginning. More universities could face similar challenges, and international students may find their futures in the US increasingly uncertain. Critics warn that harsh visa policies and political scrutiny could deter future applicants, hinder American research efforts, and push global talent to more welcoming countries.

Stuart Anderson of the NFAP sums up the situation: “Without international students, the United States would be a far less attractive place to study, innovate, and grow.”

This complex situation underscores the critical importance of international students in the US economy, academia, technology innovation, and diplomacy — and highlights the potential risks posed by current restrictive policies. Maintaining a welcoming and supportive environment for foreign students will be key to preserving America’s leadership in science, technology, and global influence.

The Upcoming IPOs in this week and coming weeks are 3B Films, N R Vandana Tex Industries, Scoda Tubes,Neptune Petrochemicals, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems, Aegis Vopak Terminals, Schloss Bangalore.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.