Immigration shift could cost Mass. universities, economy billions
Mirella Franzese
May 2025 — Immigration crackdowns in higher education will cost the Massachusetts economy billions in lost revenue, says a new Boston University study.
Thousands of international students on J-1 and F-1 visas lost their legal status last month as the U.S. State Department tightened restrictions on immigration. While the new administration has now reversed its decision and restored the legal standing of students affected, more than 280 colleges and universities across the nation were hit by this latest swing in immigration policy.
“International students bring with them $3.9 billion in annual spending power,” BU Questrom Business School Master Lecturer Mark Williams told Invest:. “This supports almost 36,000 Bay State jobs.”
From an economic standpoint, President Trump’s new hardline approach to immigration could effectively cost the Bay State economy millions in lost tax revenue and the loss of thousands of workers, according to Williams.
Boston, which is home to 7% of the foreign student population in the U.S., is likely to be significantly affected by the policy shift. But the impact extends beyond the state capital.
“Central Massachusetts colleges and universities are now in the process of not only navigating international students’ fears, but bracing themselves for just how much those students’ absences could impact their economic standing,” said Bowditch & Dewey Associate Attorney Chelsie Vokes, as cited by Worcester Business Journal.
According to international education nonprofit NAFSA, one U.S. job is created for every three international students as a result of increased spending in higher education, housing, dining, retail, transportation, mobile communications, and healthcare services.
And fewer regional workers could impact the state’s core industries — transportation, housing, manufacturing, construction, and STEM-related fields — in addition to slower innovation and startup activity.
Williams noted that many international students choose to pursue STEM degrees, making their contributions to the state’s knowledge-based economy significant.
“In Massachusetts, one in every five workers is employed by a STEM industry,” he explained. For perspective, 15,891 out of the total 82,000 active international students in the state of Massachusetts are studying STEM.
On the national level, the majority of international graduates who decide to stay in the U.S. after graduation are employed in STEM occupations. In 2021, just under 30% were not working in STEM industries.
“Foreign students who are hired after graduation fill jobs at many Massachusetts innovation-driven companies… and are two times more likely to be entrepreneurial, creating startups that generate additional jobs and tax revenue for the state,” Williams added.
In recent years, U.S. employers were increasingly hiring international students on temporary work visas. In 2023, for instance, the number of overseas students employed by national companies rose by 36.9% compared to the previous year, according to U.S. Homeland Security Investigations.
In addition to supporting U.S. employment growth, international tuition dollars have also been critical to bolstering endowments in the higher education sector, according to Vokes.
“Because most foreign citizens are ineligible for federal or state financial aid, they often pay full tuition for enrollment at U.S. schools, allowing for discounted cost-of-study for their U.S.-citizen counterparts,” she said. “In some respects, the international community is subsidizing the scholarships and the reduction in tuition that domestic students are experiencing.”
Despite a steady increase in the number of foreign citizens attending American schools as reported by SEVIS records, the Trump administration’s new immigration policies could multiply what Williams refers to as “Foreign Student Exit Risk.”
This could lead to a 10% decline in statewide international enrollment by 2028.
Associated yearly revenue losses could reach $446 million for the top 10 Massachusetts-based universities and colleges, including Northeastern University, Boston University, Harvard University, MIT, UMass-Amherst, Berklee College of Music, Boston College, Babson College, Tufts University, and Brandeis University.
“If the likelihood of them getting a job post graduation is less likely, they may not want to invest the time and energy and the money into forging those connections and studying within the U.S.,” added Vokes.
Top image by Ryan Gandolfo/caa
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