The Effect of Decreased Government Funding on University Policy to Attract International Students

The United States has maintained a dominant role in International Higher Education for decades. However, changes to public university budgets and difficulties in retaining international students after graduation has caused the United States to lose its grip in this industry. Data from 690 public 4-year or above institutions were accessed through the Integrated Postsecondary Education Data System (IPEDS) to measure the effect of decreases in state appropriations as a percent of core revenues on the number of international students enrolled each year from 2008-2018. After controlling for tuition and fees as a percent of core revenue, land grant status of the institution, and the presence of career placement services, a 1% decrease in state appropriations is associated with increased enrollment of international students by 2.52 individuals. This is statistically significant at the 1% level. These results highlight the need for universities to properly support international students on campus, as well as strategize ways to retain the human capital that results from educating these students.