Foreign student spending in the US plummets as visa restrictions tighten

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Foreign student spending in the United States experienced a significant decline of 5.3% over the year ending in September, translating to a loss of approximately $3 billion. This drop marks the steepest decrease recorded outside of the COVID-19 pandemic years. The decline has been attributed to stricter visa regulations implemented by the current US administration, which have also contributed to a notable reduction in international student enrolment for the upcoming 2025 fall semester.

In addition to the drop in spending by foreign students, overall foreign expenditure in the US, which encompasses student expenses as well as travel, medical, and other costs incurred by foreigners, decreased by 7.6%. This represents a substantial decline of around $16.6 billion compared to the previous year. Experts suggest that the significant reduction in spending by international students highlights the impact of restrictive visa policies, which are not only affecting higher education but also broader economic interactions associated with foreign participation in the US market.