The new U.S. policy around foreign students could reduce U.S. GDP by up to $481 billion a year. The greatest loss comes from the decline of Optional Practical Training (OPT) members. Many STEM graduates use the OPT program for staying in the U.S. between graduating getting a job.

OPT lets foreign students stay and work in the U.S. for up to twelve months. STEM graduates, meanwhile, have thirty-six months to stay and work in the U.S. The program grew dramatically from its introduction in 2000, becoming an intrinsic part of the legal pathway for prospective H-1B beneficiaries.

Additionally, the government revealed alterations to the H-1B application process that affects foreign students. The new one-hundred-thousand-dollar H-1B application fee sets up a massive barrier for one of the most popular avenues for foreign graduates. For example, more than half of all international graduates at U.S. universities from 2010 to 2022 participated in the OPT program.

The government also signaled its’ willingness towards altering or even cancelling the OPT program in the future. If accomplished, such changes eliminate one of the most popular entry pathways for international graduates. The exact timing of such changes is still uncertain.

If the anticipated changes happen, they’ll drastically reduce the number of highly trained foreign graduates entering and studying in the country. Even if the number of STEM graduates decreases by just ten percent, the U.S. economy could see a $72 billion loss per year. Meanwhile, highly trained individuals reconsidering studying in the U.S. hurts the country’s innovation capacity for the future.

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