Changes to Duration of Status Rule Will Hurt the U.S. Economy 

In July 2026, the Department of Homeland Security finalized a rule replacing “duration of status” with a fixed time limit, restricting international students’ visa status to a maximum of four years and requiring petitions for additional time after that. One-third of all U.S. STEM PhD holders who came as international students end up staying in the country, and a main pathway for these individuals to integrate into the American workforce is Optional Practical Training, with 64% of international STEM students using OPT at the end of their studies. The Peterson Institute for International Economics argues the new rule will allow administration officials to block Optional Practical Training, ultimately with negative effects for the U.S. economy. PIIE estimates that a sustained one-third drop in international student inflows would cost the U.S. roughly $200 billion to $400 billion per year, about 0.7 to 1.3% of GDP, comparable to losing an entire state economy the size of Utah or South Carolina. This is supported by a recent analysis by Fitch Ratings, which finds that recent changes to immigration policy “may contribute to sustained fluctuations in international enrollment that pressure student fee revenue, potentially weakening operating performance and financial flexibility.” Although unlikely at this time, the final rule could still be blocked by Congress under the Congressional Review Act or struck down by courts for failing to adequately weigh its economic harm.