A growing number of top US universities are facing an immediate threat to their ability to attract international academic talent and graduate students. New changes to the H-1B visa system under President Donald Trump’s administration, including a $100,000 fee for new applicants and a shift in lottery preference, are causing concern across higher education institutions.
While the changes are set to apply to commercial companies beginning in March next year, universities — typically exempt from the annual visa cap — are already experiencing the impact. As reported by Forbes, immigration policy experts warn that these institutions are effectively on the frontlines of the policy change, with little protection under current exemptions.
New fee hits exempt institutions first
According to Forbes, Jeremy Neufeld, Director of Immigration Policy at the Institute for Progress, stated that this change is “a pure tax on their pipeline.” Universities, along with certain research and non-profit organisations, are not subject to the H-1B visa lottery and may apply throughout the year. However, the administration has not excluded these groups from the $100,000 fee, previously set between $2,000 and $5,000 depending on employer size.
The rule also proposes prioritising older, higher-paid applicants in the visa lottery. This may significantly reduce opportunities for recent international graduates seeking to remain in the US under an H-1B visa. Combined with changes to F-1 student visas and Optional Practical Training (OPT) regulations, these policies are reshaping post-graduate pathways for foreign students.
Impact on enrolment and staffing across US universities
Data from the US International Trade Administration, cited by Forbes, revealed a 19% decline in international student arrivals in August compared to the same month the previous year. In July, the year-over-year drop was 28%. Stuart Anderson, a senior contributor for Forbes, reported that some of the decline could be attributed to students choosing to stay in the US during summer break to avoid reentry issues.
A record 502,291 international students were enrolled in graduate programmes across the US in 2023–2024, compared to 342,875 undergraduates, according to Open Doors data cited by Forbes. The impact is expected to be particularly severe on institutions with high international enrolment in STEM and research programmes.
Academics raise concerns over hiring and research continuity
Several faculty members have spoken out about the direct impact of the new H-1B fee. As quoted by Forbes, Anshul Kundaje, Associate Professor of Genetics and Computer Science at Stanford University, described the $100,000 fee as “utterly stupid” and “idiotic.” He said many of his lab’s senior research staff on H-1Bs are critical to its output.
Professor Jorge Coronado of Northwestern University told Forbes that international hiring was never previously a budgetary consideration in academic departments. He stated, “An $100,000 sticker on already strained budgets would be taken into consideration in hiring.”
Top H-1B university recipients in FY 2025 (Oct 1, 2024 – Jun 30, 2025)
The following 25 universities received the highest number of new and renewed H-1B visas in the first nine months of Fiscal Year 2025. Figures are from the US Citizenship and Immigration Services database and represent both initial and renewed H-1B approvals.
Source: USCIS
Legal challenge and broader implications
A lawsuit was filed in the US District Court for the Northern District of California seeking to block the $100,000 fee. As reported by Forbes, plaintiffs include the American Association of University Professors, labour unions, a church, a recruitment firm, and a postdoctoral researcher whose visa sponsorship was withdrawn due to the fee.
The Trump administration has not confirmed whether universities will be exempt from the fee, while a possible exemption for foreign medical professionals remains under consideration. Analysts cited by Forbes warn that the changes could undermine the US’s long-standing academic competitiveness and push top talent to countries such as Canada, the UK, and Germany.
While the changes are set to apply to commercial companies beginning in March next year, universities — typically exempt from the annual visa cap — are already experiencing the impact. As reported by Forbes, immigration policy experts warn that these institutions are effectively on the frontlines of the policy change, with little protection under current exemptions.
New fee hits exempt institutions first
According to Forbes, Jeremy Neufeld, Director of Immigration Policy at the Institute for Progress, stated that this change is “a pure tax on their pipeline.” Universities, along with certain research and non-profit organisations, are not subject to the H-1B visa lottery and may apply throughout the year. However, the administration has not excluded these groups from the $100,000 fee, previously set between $2,000 and $5,000 depending on employer size.
The rule also proposes prioritising older, higher-paid applicants in the visa lottery. This may significantly reduce opportunities for recent international graduates seeking to remain in the US under an H-1B visa. Combined with changes to F-1 student visas and Optional Practical Training (OPT) regulations, these policies are reshaping post-graduate pathways for foreign students.
Impact on enrolment and staffing across US universities
Data from the US International Trade Administration, cited by Forbes, revealed a 19% decline in international student arrivals in August compared to the same month the previous year. In July, the year-over-year drop was 28%. Stuart Anderson, a senior contributor for Forbes, reported that some of the decline could be attributed to students choosing to stay in the US during summer break to avoid reentry issues.
A record 502,291 international students were enrolled in graduate programmes across the US in 2023–2024, compared to 342,875 undergraduates, according to Open Doors data cited by Forbes. The impact is expected to be particularly severe on institutions with high international enrolment in STEM and research programmes.
Academics raise concerns over hiring and research continuity
Several faculty members have spoken out about the direct impact of the new H-1B fee. As quoted by Forbes, Anshul Kundaje, Associate Professor of Genetics and Computer Science at Stanford University, described the $100,000 fee as “utterly stupid” and “idiotic.” He said many of his lab’s senior research staff on H-1Bs are critical to its output.
Professor Jorge Coronado of Northwestern University told Forbes that international hiring was never previously a budgetary consideration in academic departments. He stated, “An $100,000 sticker on already strained budgets would be taken into consideration in hiring.”
Top H-1B university recipients in FY 2025 (Oct 1, 2024 – Jun 30, 2025)
The following 25 universities received the highest number of new and renewed H-1B visas in the first nine months of Fiscal Year 2025. Figures are from the US Citizenship and Immigration Services database and represent both initial and renewed H-1B approvals.
Source: USCIS
Legal challenge and broader implications
A lawsuit was filed in the US District Court for the Northern District of California seeking to block the $100,000 fee. As reported by Forbes, plaintiffs include the American Association of University Professors, labour unions, a church, a recruitment firm, and a postdoctoral researcher whose visa sponsorship was withdrawn due to the fee.
The Trump administration has not confirmed whether universities will be exempt from the fee, while a possible exemption for foreign medical professionals remains under consideration. Analysts cited by Forbes warn that the changes could undermine the US’s long-standing academic competitiveness and push top talent to countries such as Canada, the UK, and Germany.
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