Michigan, Washington University face $38 million hit from new visa fees: Here's why research could suffer

President Trump's new $100,000 fee for H-1B visas threatens to impose severe financial strain on major research universities across America. The University of Michigan and Washington University in St. Louis could face combined annual costs exceeding $38 million if they maintain current international hiring levels.

The policy change affects institutions already grappling with federal funding cuts and hiring freezes. Both universities rely heavily on H-1B visas to recruit international researchers, faculty, and academic staff who drive cutting-edge research programmes.

Universities brace for massive cost increases
The University of Michigan, which hires approximately 224 international staff annually through H-1B visas, faces potential additional costs of $22.4 million per year, according to data from the United States Citizenship and Immigration Services (USCIS). Washington University in St. Louis, with 156 new H-1B hires yearly, could see costs rise by $15.6 million annually.

These figures represent substantial financial burdens for institutions already implementing cost-cutting measures. The timing proves particularly challenging as universities have reduced programme funding and rescinded PhD admissions due to federal research funding reductions.

International talent recruitment under threat
"No university is going to be willing to pay that," Ryan Allen, a professor of comparative and international education at Soka University of America in California, told Bloomberg. "It will change hiring and recruitment practices from here on out. The international talent pool for researchers and faculty — that's turned off."

Universities have historically used the H-1B system to recruit academic staff, postdoctoral researchers, and faculty members. Unlike corporations, educational institutions benefit from exemption from the annual H-1B cap and lottery system, providing greater flexibility in international hiring.

Research workforce heavily dependent on foreign talent
Statistics reveal the extent of universities' reliance on international staff. Approximately 58% of postdoctoral staff in science, engineering, and health fields were on temporary visas such as H-1B as of 2023, according to the National Center for Science and Engineering Statistics.

H-1B hiring patterns among major research universities:

Medical training programmes face uncertainty
Many H-1B employees at universities work as medical residents. Immigration lawyer James Hollis indicated that those who attended medical school in the US might qualify for fee exemptions, as the administration suggested applicants changing status from short-term student visas could receive exceptions.

International students , particularly from India representing the largest market for US colleges, face additional uncertainty. For these students, H-1B visas provide crucial pathways to remain in the country after graduation.

"For those international students, the question won't just be 'can I get a visa to come.' It will be more about playing the long game," said Rajika Bhandari, an international education consultant focusing on South Asia, as reported by Bloomberg.

Universities now await clarification on how the Trump administration will implement these H-1B changes whilst managing existing financial pressures.