International Students as a Financial Lifeline for U.S. Colleges? Trump Launches Assault, Sparking Controversy

In the American higher education system, international students have become a vital pillar of university finances. According to a report by the Washington Post, over 1.1 million international students enroll in universities across the U.S. each year, contributing more than $40 billion to the economy and enhancing America’s capabilities in science and technology. However, these "cash cows" are now entangled in a fierce battle between President Trump and elite universities, which is expected to have profound impacts on the economy and academic research.
Stuart Anderson, executive director of the National Foundation for American Policy, stated, "International students bring vibrant science research centers to the U.S. and help tech companies thrive, whether startups or large firms in Silicon Valley; they are key talents." Recently, the Trump administration revoked Harvard University's eligibility to enroll foreign students, threatening existing international students with expulsion if they do not transfer.
Even though a Massachusetts federal judge issued a temporary injunction within 24 hours, the issue is far from resolved. A White House spokesperson remarked, "These unelected judges have no authority to impede the Trump administration from exercising its legitimate powers regarding immigration policy and national security." The court is set to hear the matter on the 27th.
The Trump administration is using unprecedented tactics to target U.S. universities, accusing them of harboring anti-Semitism and maintaining the diversity, equity, and inclusion (DEI) policies that Trump wants to abolish.
When Trump targeted Harvard back in March, the university's officials discussed whether to file a lawsuit or negotiate, but after a series of attacks from Trump, including the withdrawal of billions in federal funding, threats to revoke tax-exempt status, and halting international student admissions, the administration ultimately chose to maintain its stance; according to the Wall Street Journal, as of the 23rd, Harvard had already filed two lawsuits against the federal government.
Trump indicated on the 26th that he is considering freezing or canceling Harvard’s $3 billion research grants, reallocating these funds to vocational schools across the country. He further criticized Harvard for its reluctance to cooperate with the government and for not providing a "foreign student list"; he claimed the information was necessary to identify "radical extremists, troublemakers." However, it remains unclear what Trump specifically means by the "foreign student list" since the federal government already possesses all students’ visa data, including the names and nationalities of about 6,800 international students at Harvard.
The New York Times reported that these frozen or canceled research funds are primarily used for scientific research activities, with the Harvard T.H. Chan School of Public Health being the most affected, working on research such as tuberculosis prevention and causes of multiple sclerosis, areas that typically do not fall under vocational disciplines that primarily impart practical skills like automotive repair and beauty.
According to the New York Times, the proportion of international students in the U.S. has consistently risen over the past 20 years, driven not only by increasing incomes in countries like China and India, where more families aspire to send their children to study in the U.S., but also by internal policy changes within the U.S. government. Particularly in public research universities in various states, as state governments reduce education funding, these institutions have turned to enrolling international students who typically pay full tuition fees to fill budget gaps.
Gaurav Khanna, an economics professor at the University of California, San Diego, remarked, "We talk about trade deficits with China, which are deficits in goods, but from a service perspective, like higher education, we actually have a significant surplus."
Higher education has effectively become a vital "export industry" for the U.S., with these international students making substantial contributions in housing, food, and books. The NAFSA estimates that during the 2023-24 academic year, the U.S. will attract over 1.1 million international students, contributing approximately $43 billion to the economy, with most of it coming from tuition and accommodation. Fanta Aw, the executive director of NAFSA, emphasized: "In addition to economic contributions, international students also significantly enhance America’s innovation; many come to the U.S. for graduate studies and participate in cutting-edge research, even assisting in startups." The Washington Post stated that last academic year, international students at Harvard contributed about $384 million to the local economy.
In contrast, American students often receive various forms of financial aid from universities or the federal government, while many in-state students at public universities benefit from reduced in-state tuition. Therefore, the tuition paid by international students is often 1.5 times or more that of American students. According to the Institute of International Education's research director, Mirka Martel, the high tuition paid by international students effectively subsidizes the costs for American students.
Currently, the largest groups of international students in the U.S. come from China and India, largely studying in the fields of science, technology, engineering, and mathematics (STEM). Anderson pointed out that 70% of full-time graduate students in electrical engineering and computer science are international students; it is precisely because of this demand that U.S. colleges are offering more STEM courses, enabling American students to engage more in technology research. Anderson stated, "Without the demand from international students, many schools would find it difficult to offer such a wide range of courses, and might not be able to maintain their current scale."