Student - Legislative Outline

U.S. Citizen Student Education Protection Act: Prioritizing American Students

I. Introduction

The U.S. Citizen Student Education Protection Act introduces the U.S. Foreign Student Enrollment Levy, a Single-Tax Pillar, 4-Tier Duration Framework applied to universities for each F-1 or J-1 visa student enrolled. This levy tackles overreliance on international students, which strains resources, limits spots for U.S. citizen students, and poses national security risks due to inadequate vetting in fields like STEM.

In 2023, 1.5 million F-1 and J-1 students contributed $40 billion annually to the U.S. economy (IIE Open Doors 2023), but their enrollment displaces American students, with domestic STEM enrollment down 10% since 2010 (NCES). 

The proposed NAICS 611319 (International Student Enrollment and Compliance Services), submitted to the U.S. Census Bureau in July 2025, classifies this activity as a distinct industry, enabling tracking, policy enforcement, and data analysis separate from general university operations.

The levy, tiered by enrollment duration, supports short-term exchange programs while incentivizing U.S. citizen admissions in longer-term degrees. Proceeds fund scholarships, campus infrastructure, and enhanced vetting, fostering a citizen-led educational system through federal and state collaboration.

II. Definitions

• U.S. Citizen Student: A U.S. citizen by birth or naturalization (8 U.S.C. § 1401 et seq.) enrolled or seeking enrollment in a U.S. higher education institution.
• Foreign Student: A non-citizen enrolled in a U.S. university under:
  • F-1 Visa: Non-immigrant visa for academic students, including OPT/STEM OPT (8 U.S.C. § 101(a)(15)(F)).
  • J-1 Visa: Non-immigrant visa for exchange visitors (e.g., scholars, trainees) in university programs (8 U.S.C. § 101(a)(15)(J)).
  • Exclusions: Non-students (e.g., B-2 visitors) or undocumented individuals not trackable via SEVIS.
• Levy: An IRS-administered tax on universities per enrolled foreign student to prioritize U.S. citizen enrollment.
• Duration of Stay: Years a foreign student is enrolled, tracked via SEVIS and university records.
• Year Tiers: Enrollment duration categories: Year 1 (exchange/short-term), Years 2–3 (undergraduate/early graduate), Years 4–5 (extended undergraduate/graduate), Year 6+ (advanced graduate/Ph.D.).
• High-Demand Programs: Competitive fields like STEM (e.g., computer science, engineering) and professional degrees (e.g., medicine, law), per Department of Education.
• SEVIS: Student and Exchange Visitor Information System, managed by DHS, for tracking F-1/J-1 students.

III. U.S. Foreign Student Enrollment Levy: Single-Pillar Approach

The U.S. Foreign Student Enrollment Levy is an IRS-administered tax per F-1/J-1 student, tiered by enrollment duration, with a constant Year 1 rate to support short-term exchanges and escalating rates to prioritize U.S. citizen admissions in longer programs. Rates increase over three years to encourage citizen-led enrollment.

Structure (per student)

• Year 1: $500 (Years 1–3, constant; e.g., J-1, ~150K students, SEVIS 2023).
• Years 2–3: $1,000 (Year 1), $2,000 (Year 2), $3,000 (Year 3; undergraduate/early graduate).
• Years 4–5: $2,000 (Year 1), $3,000 (Year 2), $4,000 (Year 3; extended undergraduate/graduate).
• Year 6+: $3,000 (Year 1), $4,000 (Year 2), $6,000 (Year 3; advanced graduate/Ph.D.).
• STEM Surcharge: $500 (Years 1–2), $1,000 (Year 3) for high-demand STEM programs (60% foreign graduate slots, NSF 2023).
• Implementation: Assessed via university SEVIS reports and IRS filings, cross-checked with Department of Education data.
• Rationale: Constant $500 Year 1 rate preserves cultural exchanges; escalating rates reduce foreign student reliance, freeing spots for 1.1M domestic STEM applicants annually (NCES). Flat dollar structure simplifies administration.
• No Exemptions: Applies to all universities enrolling F-1/J-1 students.

IV. Revenue Allocation

Levy proceeds support U.S. citizen students and education:

• Scholarships: Fund merit- and need-based awards for U.S. citizens in STEM, healthcare, and high-demand fields.
• Tuition Assistance: Grants to offset 30% tuition increases since 2010 (College Board).
• Academic Support: Expand tutoring, mentoring, and career services for U.S. student retention.
• Financial Aid: Emergency aid for U.S. students waitlisted due to capacity constraints.
• Transfer Assistance: Support programs to help U.S. students access universities with available spots.
• Tax Incentives:
  • Enrollment Credit: $5,000 per U.S. citizen in high-demand programs (public universities); $3,000 (private).
  • Retention Credit: $1,000/year per U.S. citizen retained over 12 months.
  • Tax Reduction: 5% for universities with 85%+ U.S. citizen enrollment for 12 months.
  • Eligibility: Maintain 85% U.S. citizen enrollment, no reduction in U.S. admissions, compliance for 12 months.
  • Special Consideration: $7,500 credits for STEM/professional programs for 5 years.
• Infrastructure: Fund classrooms, labs, and housing to increase U.S. student capacity.
• Outreach: Support recruitment from underserved U.S. communities.

V. Transition Assistance

• Recruitment Programs: Grants for outreach to U.S. high schools and community colleges.
• Financial Support: Subsidies to offset revenue losses from reduced foreign student tuition.

VI. Enforcement Mechanisms

• Audits: Annual Department of Education/IRS audits verify levy payments and U.S. student enrollment, cross-checked with SEVIS/DHS.
• Penalties: 100% levy surcharge, 5-year federal funding ban (e.g., Pell Grants), public disclosure of violations.
• Admission Oversight: 90-day U.S. student recruitment attestation before exceeding 15% foreign enrollment, verified by audits.

VII. Addressing Concerns

• Fairness: $500 Year 1 rate supports cultural exchanges (e.g., J-1), preserving goodwill.
• Impact Studies: Continuous assessments of enrollment, budgets, and capacity to ensure U.S. student benefits.
• Mitigation: Proceeds fund scholarships, infrastructure, and subsidies to ease university transitions.

VIII. Public Awareness Campaign

• Education: Highlight competition for spots (40% STEM graduate admissions are foreign, NSF 2023) and levy benefits via bar charts showing $500 Year 1 and escalating rates.
• Engagement: Promote U.S. student opportunities through high school fairs and outreach.

IX. Feedback Mechanism

• Stakeholder Input: Online portal for universities, students, and communities.
• Review Periods: Biennial rate/cap adjustments for fairness.
• Legislative Codification: Advocate for Congressional adoption.

X. Collaborative Efforts

• Interagency Coordination: Department of Education, IRS, DHS, SEVP streamline levy collection and vetting.
• State Partnerships: Align state education boards with levy goals.

XI. Foreign Student Vetting & National Security

• Vetting: Strengthen SEVIS screening for F-1/J-1 students in STEM (80% of 2023 DOJ IP theft cases involved foreign students).
• Agency Roles: DHS, SEVP, DOJ, Department of Education coordinate vetting and enforcement.
• Transparency: Public disclosure of foreign student enrollment (visa, program); enhanced background checks for sensitive fields.

XII. Conclusion

The U.S. Citizen Student Education Protection Act, paired with NAICS 611319, transforms higher education by prioritizing U.S. citizen students, reducing foreign student reliance, and enhancing security. Its tiered levy ($500 Year 1, escalating rates) ensures fairness while funding scholarships and infrastructure. Congress is urged to pass this Act for a competitive, equitable, and secure educational future.

XIII. Appendix: NAICS 611319 Proposal (July 2025)

• Purpose: Classify international student enrollment (recruitment, visa coordination, SEVIS compliance, work authorization) as a distinct economic sector.
• Economic Impact: 1.5 million students, $40 billion annually.
• Policy Application: Provides data for levies, U.S. enrollment targets, and security.
• Production Process: Covers university offices handling international compliance.