While much attention has focused on which tech giants might suffer most from President Donald Trump’s sweeping H-1B visa measures including a $100,000 fee per new visa, the first wave of impact could hit universities, according to Jeremy Neufeld, director of immigration policy at the nonpartisan Washington think tank, Institute for Progress.
The $100,000 fee is not set to affect companies until next March, when the annual lottery for roughly 85,000 new H-1B visas takes place. In contrast, universities and certain research or nonprofit organizations are exempt, allowing them to apply for visas year-round without being subject to the lottery or the cap. “The universities are on the frontlines and this is just a pure tax on their pipeline,” declares Neufeld.
For now, universities and other exempt organizations remain subject to the $100,000 H-1B fee, despite the Trump administration’s proclamation hinting at possible national interest exemptions. By comparison, H-1B fees previously ranged from $2,000 to $5,000, depending on the employer’s size, according to the American Immigration Council.
Universities could also feel the impact from another component of the Trump administration’s September H-1B measures: a proposed change to the visa lottery that would prioritize older, and likely higher-paid, workers. This shift could make it more difficult for international students earning master’s and PhD degrees in the U.S. to remain and work after graduation, a key incentive that has long been part of the appeal of American higher education.
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Meanwhile, the University of Southern California (USC) has issued a travel advisory for faculty and staff on H-1B visas, recommending they postpone international travel until more clarity emerges on the visa rules. According to the university’s student newspaper, the guidance also advised staff currently abroad to return to the United States.
“Out of an abundance of caution, all faculty and staff in H-1B status currently in the U.S. should put international travel plans on hold until they receive further guidance,” the statement obtained by the outlet reads, quoted by TOI. “If possible, any faculty and staff in H-1B status who are currently outside the US are strongly recommended to return to the US before the proclamation takes effect.”
“One of the primary reasons why people come here as well is because of the international reputation of the American education system,” Aisling Kelliher, an associate professor, cinematic arts at USC who came to the United States on H-1B said. “It’s a huge opportunity, both to come here as an immigrant and to receive an education, and then also to be able to continue as a researcher and as a teacher within the system that you’ve learned from.”
Other Trump Administration policies are already reducing foreign student enrollment. Data from the U.S. International Trade Administration shows international student arrivals (except for from Canada and Mexico), were down 19% this past August from August of 2024, falling to 307,419. July arrivals were off 28% from the year before, to 76,519. Also, Forbes immigration senior contributor Stuart Anderson, in reporting those numbers, noted some of the decline could reflect already enrolled students deciding not to return home for the summer since “many universities advised students to consider remaining in America rather than risk being blocked on reentry.”
Data from the U.S. Citizenship and Immigration Services shows the 25 universities receiving the most H-1B visas in the first nine months of Fiscal Year 2025 (October 1, 2024, through June 30, 2025). Stanford University led the list with 500 visas granted during this period, with 36% of its graduate students coming from abroad. At Washington University in St. Louis and Columbia University in New York City, nearly half of graduate students (46%) were international.
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On Friday, a lawsuit challenging the new $100,000 H-1B fee was filed in the U.S. District Court for the Northern District of California. Plaintiffs include the American Association of University Professors, unions representing graduate students and medical residents, a church and its pastor, the recruiting firm Global Nurse Force, and an Indian postdoctoral researcher studying the genetic and epigenetic causes of blindness, whose university stopped sponsoring her H-1B due to the fee.
The complaint highlights that the fee appears to affect workers already legally in the U.S. on other visas, such as F-1 student visas, who are seeking to switch to H-1B status.
Even if courts eventually block the $100,000 fee or grant exemptions for universities and nonprofits, the broader H-1B measures could still create a chilling effect on recruiting international faculty.
Compounding the issue, proposed changes to student visas could prevent some graduate students from pursuing postdoctoral positions in the U.S. through Optional Practical Training (OPT), a program that allows STEM graduates from abroad to work for up to three years, build professional networks, and transition into H-1B roles sponsored by universities or private employers.