Trump Visa Rule May Cost US Economy $400 Billion Annually

The Trump administration has introduced a rule that limits the duration of stay for international students in the United States, which could potentially cost the U.S. economy between $200 billion and $400 billion annually. This rule, issued in July and set to take effect in September, replaces the previous "duration of status" policy with a fixed stay of up to four years for most international students.

Students wishing to extend their stay for further studies or post-graduation work must now apply for an extension. The Peterson Institute for International Economics (PIIE) warns that this change could significantly decrease the number of highly skilled international graduates entering the U.S. workforce, particularly in STEM fields.

The report emphasizes that foreign STEM graduates contribute substantially to innovation and economic growth, patenting inventions at four times the rate of typical graduates. The decline in international student enrollment could have lasting effects on the U.S.'s global competitiveness and economic output.