Dear Friend

Stanford University had petitions approved for 500 H-1B visas through this year’s third quarter, according to federal data, topping all educational institutions seeking to hire foreign-born employees under the program for highly skilled workers. Such a talent strategy could suddenly be prohibitively expensive.

President Trump’s new $100,000 fee on H-1B visas scrambles assumptions for colleges. Trump’s Friday executive order requires employers to pay the fee for employees they sponsor, starting with visa applications filed two days ago.

The rollout of the new program has been messy, prompting warnings for visa holders to return to American shores, before it became clear the policy only applies to new applicants.

Yet nothing indicates colleges will be exempt. Colleges have been excluded from a cap that limits to 85,000 the number of H-1B visas awarded via lottery each year. A White House FAQ suggests even lottery-exempt employers will have to pay.

“It’s going to cost institutions of higher education and other U.S. businesses a lot more money,” Sarah Spreitzer, vice president and chief of staff for governmental relations for the American Council on Education, told The Washington Post.

Current H-1B visa application fees typically top out at $5,000, depending on an employer’s size, the Post reported. Universities pay less.

American colleges might struggle to hire key foreign talent, wrote Brendan Cantwell, a Michigan State University professor. Colleges have been able to snag top researchers at relatively modest salaries because they were better H-1B visa bets than other employers. The new $100,000 levy could bust budgets.

• “U.S. colleges and universities will not be able to fill vital roles on campus, especially in science and engineering fields,” he wrote.

To be sure, the H-1B program isn’t the only type of visa colleges use. They can and do hire under other visa options.

But international enrollment could also be affected. More than half of H-1B visas approved in 2024 came from within the United States, the Department of Homeland Security reported. Of them, more than 70 percent went to student-visa holders.

“Given that entry into the U.S. job market is now tougher, how many graduate programs will close up?” mused the economist Tyler Cowen.

The bigger picture: This might look like a way to thread the needle between MAGA’s natavists, business backers, and budget-hawks. But should it survive the inevitable court challenges, the law of unintended consequences looms large for higher ed.

Trump Administration Imposes $100,000 Fee on New H-1B Visas, Reaction and Analysis

On September 19, the Trump administration announced a new $100,000 fee for employers sponsoring H-1B workers, representing a dramatic increase from the current cost of a few thousand dollars. Over the weekend the administration attempted to clarify the change, saying the fee will only apply to new applications and not to renewals or current visa holders.

• The Chronicle of Higher Education reports the change creates significant challenges for universities, which rely heavily on international talent. Some institutions employ hundreds of H-1B workers.
• Politico covers the confusion and legal concerns sparked among business leaders by the announcement and the administration's efforts to tamp down panic.
• Fortune notes mixed industry reactions, with some leaders acknowledging the need for H-1B reform while others warn that turning away talent undermines the United States' competitive advantage.

Legal challenges to the policy change appear likely, as visa fees typically require Congressional approval.

International education professionals face unprecedented challenges as policy shifts, increased regulatory scrutiny, and polarizing political rhetoric create operational uncertainty. Meanwhile, the field is also navigating the anticipated enrollment cliff and ongoing impact of the pandemic. Against this background, Terra Dotta surveyed more than 150 international student and scholar services professionals—including directors, managers, and advisers—to benchmark current conditions in the field.

The survey findings reveal significant strains on capacity and resources:

• Staffing Disparities: Student-to-staff ratios range from 21 students per full-time staff position at liberal arts colleges to 197 at public universities, with more than half of public university respondents reporting they feel under-resourced.
• High Turnover: Staff turnover in international education exceeds both the 20 percent Deloitte benchmark and 13 percent higher education average. Respondents cited low compensation, lack of institutional support, and limited growth opportunities as key drivers of high turnover rates.
• Technology Gaps: Despite significant SEVIS compliance needs, 20 percent of offices lack dedicated software for automation, and one-third report gaps in compliance preparation