The closing months of 2025 brought no respite for the international education sector in the United States. As the year ended, the US government cemented significant alterations to the H-1B visa process, while a federal court validated a hefty new fee of $100,000 for specific H-1B petitions. These developments solidified immigration policy as a major point of contention and pressure heading into 2026.
A Strategic Pivot: From Global Talent to Domestic Workforce
The groundwork for this shift was laid a month prior, in November 2025, with the release of the White House's National Security Strategy. This pivotal document officially decoupled two concepts long intertwined in American policy: immigration and innovation. Moving forward, US immigration will be framed primarily through the lenses of national security and labour protection. This signals that entry into the US will be evaluated less on arguments for attracting global talent and more on immediate domestic workforce needs.
For the vast community of international students, including a significant number from India, this policy redirection carries profound implications. The impact is felt not at the initial border entry, but in the crucial post-graduation phase. Two key areas are now under intense scrutiny: the Optional Practical Training (OPT) program and the regulations dictating how long students can legally stay in the country during their academic pursuits.
Optional Practical Training (OPT) Faces Increased Scrutiny
OPT has traditionally served as a vital bridge for international graduates, permitting them to work in the US for up to three years on their student visa. This period helps offset substantial tuition fees, provides invaluable professional experience, and allows students to test the waters for long-term options like the H-1B visa.
In 2026, this bridge appears increasingly unstable. Policy indicators point towards stricter oversight, narrower eligibility criteria, and heightened compliance demands for employers. Even if the program isn't abolished outright, the mere increase in scrutiny is likely to change behaviours. Companies may become more hesitant to hire international graduates, fearing administrative burdens. Consequently, prospective students may recalculate whether investing in a US degree still promises a reliable return.
This risk is concrete. Historical surveys indicate that a large proportion of international students specifically chose the US because OPT enabled post-study work. If confidence in this pathway erodes, enrolment numbers are poised to reflect that change.
Fixed Visa Limits and Mounting Administrative Hurdles
Parallel to the OPT pressures, a proposed change to the "duration of status" rule could cause even greater administrative disruption. In August 2025, the Department of Homeland Security proposed replacing the current flexible system—which allows students to stay for the duration of their academic program—with fixed visa terms of up to four years.
This revival of an idea from the Trump administration's first term would impact nearly all international students. Those requiring more time to complete their degrees, such as PhD candidates or students facing challenges, would need to apply for extensions. This process introduces additional costs, paperwork, and uncertainty into an already complex journey. The timing is critical, as degree completion timelines have lengthened across the board; even before the pandemic, only about one-third of students finished within four years.
While a fixed duration may not deter every applicant on its own, it contributes to a growing atmosphere of instability when combined with uncertainties around OPT, the competitive H-1B lottery, and general visa processing delays.
Enrolment Declines and Rising Competition from Other Nations
The tangible effects of this policy instability are already visible in the numbers. New international student enrolments dropped by 17% in the Fall 2025 intake, following months of policy turbulence. Experts anticipate further declines in 2026, though the impact will vary. Universities with robust industry connections and clear career outcomes may withstand the shift better than those reliant on large cohorts of price-sensitive students.
Meanwhile, competing study destinations like Canada and Australia are actively capitalising on this uncertainty. They are promoting clearer post-study work rights and faster visa processing, marketing themselves as predictable and welcoming alternatives. Canada has explicitly stated plans to attract skilled workers experiencing uncertainty in the US, including H-1B visa holders.
How Universities and Students Can Adapt
In this challenging landscape, universities must focus on elements within their control. The role of comprehensive immigration advising, strong employer partnerships, reliable housing support, and transparent program design will become even more critical in student decision-making. Additionally, global partnerships—such as dual-degree programs, exchanges, and research collaborations—that reduce dependence on a single country's visa regime will gain importance.
For now, international students are confronting a constricted version of the American dream. It demands greater financial resilience, a higher tolerance for risk, and immense patience with a constantly evolving rulebook. The political landscape may shift after the November 2026 midterm elections, but any resultant policy changes will arrive much later. For Indian students and families planning their overseas education, the message for 2026 is clear: prepare thoroughly, explore all options, and seek expert guidance to navigate this new, more complex reality.
