International students contributed nearly $43 billion to the U.S. economy in the 2024–25 academic year, according to new analysis released by NAFSA: Association of International Educators in partnership with JB International. The economic impact—measured through tuition payments, living expenses, and local spending—supported more than 355,000 U.S. jobs across higher education, housing, dining, retail, transportation, and healthcare.
But the report also delivers a warning: spending is already declining, and this year’s outlook is considerably weaker.
Economic Activity Falls for the First Time Since the Pandemic
NAFSA reports that international-student economic activity dropped 2% compared to the record-setting 2023–24 academic year. It is the first decrease since the early pandemic era and signals that the U.S. may be losing ground in attracting global talent.
This fall, the trend accelerated. Spending by international students is estimated to have declined by $1.1 billion, with nearly 23,000 jobs lost nationwide. The biggest driver: a reported 17% drop in newly enrolled international students, according to the Institute of International Education’s Fall 2025 International Student Enrollment Snapshot.
The decline in new enrollment has long-term consequences. Fewer new students mean fewer workers in Optional Practical Training (OPT) pipelines, fewer graduate researchers, and reduced economic activity in college towns across the country.
Leaders Warn the U.S. Is Losing Global Talent to Competitor Nations
NAFSA Executive Director and CEO Fanta Aw emphasized the broader implications.
“The pipeline of global talent in the United States is in a precarious position,” Aw said. “If we exclude students engaged in post-graduation Optional Practical Training, the declines are alarming. Other countries are creating incentives to capitalize on our mistakes.”
Aw urged federal policymakers to pursue more welcoming immigration and visa policies—including improved visa processing, retaining Duration of Status, and protecting OPT—to prevent further declines.
Community Colleges, English-Language Programs See Uneven Recovery
The report highlights several key sector trends:
- Community colleges saw a 10.5% increase in international-student economic contributions, totaling $2.2 billion, though growth slowed compared to last year.
- English-language programs rose 5.7% to $393.3 million, but remain far below pre-pandemic levels.
- The top five states benefiting from international-student spending—California, New York, Massachusetts, Texas, and Illinois—remained unchanged.
A Crucial Moment for U.S. Higher Education
With global competitors ramping up incentives, experts say U.S. institutions face a strategic crossroads. Rebuilding trust among international applicants, strengthening visa-support systems, and advocating for clearer federal policies will be essential for reversing the enrollment downturn.
NAFSA’s full economic analysis, including state and congressional district data, is available here.
To understand how campus climate trends intersect with shifting enrollment patterns, explore our latest issue, A National Lens on Campus Climate, which examines six years of campus survey data and key national indicators.
