$100K H-1B Fee Will Collapse America’s Universities and Will Shut Classrooms and Kill Jobs Across U.S.
The United States has built its reputation as the global hub of higher education, attracting over a million international students each year. For decades, young people from India, China, Korea, and many other countries have been drawn to its universities not only because of their prestige but also because of the promise they held. A degree from an American institution was more than just an academic qualification—it was a potential gateway to a career in the U.S., first through Optional Practical Training, then through the H-1B visa, and for many, eventually to permanent residency. This unspoken pathway has been the foundation on which U.S. universities built their global dominance.
Now, that very foundation is at risk. With the proposal of a $100,000 H-1B visa fee, the pathway that made American education worth the massive investment is being effectively dismantled. Indian and Chinese students, who together account for nearly half of all international students in the U.S., will be the most directly impacted. For Indian students in particular, who now represent over a quarter of the total foreign student population, the prospect of spending upwards of $150,000 on tuition and living expenses only to face an additional $100,000 fee for a work visa makes the U.S. an unaffordable and unattractive choice.
The reality is that Indian and Chinese students are not flocking to America merely because the universities are the best in the world. India already has IITs, IIMs, NITs, ISB, and BITS, all producing world-class graduates. The real lure has always been the career pathway that followed graduation in the U.S. Once that path is blocked, the incentive to spend vast sums on an American degree disappears overnight. Students will instead choose Canada, the United Kingdom, Germany, or Australia—countries that not only offer cheaper education but also provide clearer, more affordable post-study work opportunities.
The impact of this shift on U.S. universities will be devastating. International students contribute nearly $40 billion annually to the American economy, primarily through tuition fees and living expenses. Unlike domestic students, they pay the full sticker price, often double or triple what American students pay after subsidies and financial aid. At many universities—particularly mid-tier and regional institutions—international enrollment is not a luxury but a lifeline. Without it, many programs would close, professors and staff would be laid off, and even entire departments could disappear. Research output, which depends heavily on international graduate students staffing labs, would decline sharply, undermining the U.S.’s position as a leader in innovation.
The ripple effects extend far beyond campus. College towns across America thrive on the spending of international students. Landlords, grocery stores, restaurants, banks, and local businesses all depend on this steady inflow of money. If even half of Indian students decide not to come, billions of dollars will vanish from these local economies, leading to job cuts and business closures. What begins as a visa policy decision in Washington will translate into empty classrooms, struggling universities, and boarded-up shops in college towns from the Midwest to the coasts.
There is also a profound geopolitical cost. For decades, U.S. universities have been one of the most powerful instruments of American soft power. Every Indian or Chinese graduate who built a career in Silicon Valley or Wall Street became an informal ambassador of American values, carrying that influence back home or spreading it across the world. If students choose other countries, it is not just tuition revenue America loses, but the next generation of global goodwill. Competitors like Canada and Australia are already capitalizing on this, offering pathways that combine education with permanent residency. Germany and the U.K. are expanding similar opportunities. In the race to attract global talent, the United States risks falling behind.
By targeting the H-1B visa with exorbitant fees, U.S. policymakers may believe they are protecting domestic workers. In reality, they will be gutting one of America’s most successful export industries: higher education. The universities, the professors, the research labs, and the towns that depend on student spending will all feel the blow long before any perceived gains materialize for American workers. The question is not whether international students will stop coming—they will—but whether the U.S. is prepared for the collapse of an education system and an economy that has grown dependent on them. At stake is not only money but also America’s position as a global magnet for talent and opportunity.
