Student - Legislative Outline

I. Introduction

The U.S. Citizen Student Education Protection Act introduces the U.S. Foreign Student Enrollment Levy, a single-tax pillar framework imposed on universities for each foreign student on F-1 or J-1 visas enrolled in U.S. institutions.

This levy addresses the overreliance on international students in higher education, which strains university resources, limits spots for U.S. citizen students, and poses potential national security risks through inadequate vetting in sensitive academic fields.

With over 1.5 million F-1 and J-1 visa holders enrolled in U.S. institutions in 2023, contributing $40 billion annually to the economy (IIE Open Doors, 2023), international students represent a significant industry. However, this influx displaces American students, particularly in STEM and high-demand programs, where domestic enrollment has declined 10% since 2010 (NCES data).

To formally recognize this massive economic footprint, a separate NAICS proposal (611319 – International Student Enrollment and Compliance Services) was submitted to the U.S. Census Bureau in July 2025. This proposal calls for the classification of international student enrollment as a distinct industry—separate from general university operations—to enable clearer tracking, targeted policy enforcement, and enhanced data for evaluating education and labor impacts.

The U.S. Foreign Student Enrollment Levy imposes a tiered tax per student based on years of enrollment, ensuring fairness for short-term exchange programs while incentivizing universities to prioritize U.S. citizen admissions in longer-term degree programs.

Levy proceeds fund scholarships, expand campus infrastructure, and strengthen vetting of foreign students in critical fields (e.g., STEM, national security). Through federal and state collaboration, this Act fosters an equitable, citizen-led educational system for a prosperous future.

II. Definitions

For the purposes of this Act, the following terms are defined as follows:

• U.S. Citizen Student: A person who possesses United States citizenship by birth or naturalization, as per the Immigration and Nationality Act (8 U.S.C. § 1401 et seq.), enrolled or seeking enrollment in a U.S. institution of higher education.
• Foreign Student: A non-citizen enrolled in a U.S. university or college, authorized to study under:
• F-1 Visa: Non-immigrant visa for academic students, including those with Optional Practical Training (OPT) or STEM OPT extensions, per Section 101(a)(15)(F) of the Immigration and Nationality Act.
• J-1 Visa: Non-immigrant visa for exchange visitors (e.g., scholars, trainees), per Section 101(a)(15)(J), limited to categories involving university enrollment.
• Exclusions: Non-students (e.g., B-2 visitors) or undocumented individuals not trackable via SEVIS (Student and Exchange Visitor Information System).
• Levy: A financial charge, administered as a tax by the Internal Revenue Service (IRS), imposed on universities for each enrolled foreign student to prioritize U.S. citizen student enrollment, as detailed in Section III.
• Duration of Stay: The cumulative number of years a foreign student is enrolled in a U.S. university, tracked via SEVIS and university records.
• Year Tiers: Categories for levy application based on duration of enrollment: Year 1 (exchange/short-term), Years 2–3 (undergraduate/early graduate), Years 4–5 (extended undergraduate/graduate), and Year 6+ (advanced graduate/Ph.D.).
• High-Demand Programs: Academic programs with competitive admissions, including STEM fields (e.g., computer science, engineering) and professional degrees (e.g., medicine, law), as defined by the Department of Education.
• SEVIS: The Student and Exchange Visitor Information System, managed by DHS, for tracking F-1 and J-1 visa holders.

III. Implementation of the U.S. Foreign Student Enrollment Levy:  A Single-Pillar Approach

The U.S. Foreign Student Enrollment Levy is a single tax pillar, administered by the IRS, to make enrolling foreign students costlier for universities, incentivizing U.S. citizen student admissions.

The levy is assessed per foreign student enrolled, tiered by the duration of their enrollment in the U.S., with a constant low rate for Year 1 to support short-term exchange programs (e.g., J-1 scholars) and escalating rates for longer-term programs to prioritize American students.

Rates increase over three years to encourage universities to transition toward citizen-led enrollment.

1) U.S. Foreign Student Enrollment Levy

Structure (per student, tiered by years of enrollment):

• Year 1: $500 (Years 1–3, constant). For short-term exchange students (e.g., J-1, ~150K annually, SEVIS 2023).
• Years 2–3: $1,000 (Year 1), $2,000 (Year 2), $3,000 (Year 3). For undergraduate or early graduate students.
• Years 4–5: $2,000 (Year 1), $3,000 (Year 2), $4,000 (Year 3). For extended undergraduate or graduate programs.
• Year 6+: $3,000 (Year 1), $4,000 (Year 2), $6,000 (Year 3). For advanced graduate/Ph.D. programs.
• STEM Surcharge: Additional $500 (Years 1–2), $1,000 (Year 3) per student in high- demand STEM programs, addressing competition for limited spots (e.g., 60% of STEM graduate slots held by foreign students, NSF 2023).

Implementation: 

Assessed via university SEVIS reports and IRS filings, cross-checked with Department of Education enrollment data. Universities report the number of F-1 and J-1 students annually, with levies collected per student enrolled.

• Rationale: A constant $500 for Year 1 preserves cultural exchange programs while escalating rates deter overreliance on foreign students in degree programs, freeing spots for U.S. citizens (e.g., 1.1M domestic STEM applicants annually, NCES). The flat dollar structure simplifies administration and directly impacts university budgets, incentivizing U.S. citizen admissions.
• No Exemptions: Applies universally to all U.S. universities enrolling F-1 and J-1 students.

IV. Revenue Allocation and Use of Levy Proceeds

Levy proceeds, collected as taxes from universities, support U.S. citizen students and thedomestic education system, addressing enrollment displacement and resource strain caused by foreign students.

Educational Support Programs

• Scholarships: Fund merit- and need-based scholarships for U.S. citizen students in high-demand programs (e.g., STEM, healthcare).
• Tuition Assistance: Provide grants to reduce tuition costs for U.S. citizen students, addressing the 30% rise in college costs since 2010 (College Board data).
• Academic Support: Expand tutoring, mentoring, and career services for U.S. citizen students to improve retention and graduation rates.

Support for Displaced U.S. Citizen Students

• Financial Aid: Oher emergency aid for U.S. citizen students waitlisted or denied admission due to capacity constraints in high-demand programs.
• Transfer Assistance: Support transfer programs to help U.S. citizen students access universities with available spots.

Incentives for Universities Enrolling U.S. Citizen Students

Tax Incentives:

• Enrollment Credit: $5,000 per U.S. citizen student enrolled in high-demand programs for public universities, $3,000 for private universities.
• Retention Credit: $1,000 annually per U.S. citizen student retained for over one year.
• Tax Reduction Incentive: 5% tax reduction for universities with 85%+ U.S. citizen student enrollment, sustained for 12 months.

Eligibility Criteria:

• Maintain at least 85% U.S. citizen student enrollment.
• No reduction in U.S. citizen admissions to favor foreign students.
• Compliance sustained for 12 months.

Special Considerations: 

Higher credits ($7,500 per student) for STEM and professional degree programs for the first 5 years.

Campus Infrastructure Development

• Expansion Projects: Fund classroom, lab, and housing construction to increase capacity for U.S. citizen students.
• Community Engagement: Support outreach programs to recruit U.S. citizen students from underserved communities.

V. Transition Assistance for AHected Universities

Levy proceeds fund ongoing initiatives to support universities transitioning to U.S. citizen student enrollment:

• Recruitment Programs: Grants for outreach to domestic high schools and community colleges to boost U.S. citizen applications.
• Financial Support: Subsidies for universities to ohset revenue losses from reduced foreign student tuition, ensuring financial stability.

VI. Robust Enforcement Mechanisms

To ensure levy compliance and prioritize U.S. citizen students:

Compliance Audits:

• Annual Department of Education and IRS audits verify levy payments and U.S. citizen student enrollment attestations, cross-checked with SEVIS and university records.
• Universities report all F-1 and J-1 students via SEVIS, verified by DHS.

Penalties for Non-Compliance:

• 100% surcharge on levies for violations.
• 5-year ban from federal funding (e.g., Pell Grants, research grants).
• Public disclosure of violations.

Admission Oversight:

• Require 90-day U.S. citizen student recruitment attestation before admitting foreign students above a 15% enrollment cap, verified by Department of Education audits.

VII. Addressing Concerns

To ensure the U.S. Foreign Student Enrollment Levy benefits U.S. citizen students while minimizing disruption:

• Fairness: Constant $500 rate for Year 1 supports cultural exchange programs (e.g., J-1 scholars), countering claims of exclusionism and preserving international goodwill.
• Impact Studies: Continuous assessments evaluate enrollment trends, university budgets, and program capacity to ensure benefits for U.S. citizen students.
• Mitigation Strategies: Levy proceeds fund scholarships, infrastructure, and subsidies to ohset university revenue losses and support transitions.

VIII. Public Awareness Campaign

To build support for the U.S. Foreign Student Enrollment Levy:

• Education Initiatives: Campaign highlights competition for university spots (e.g., 40% of STEM graduate admissions are foreign students, NSF 2023) and levy benefits, using visuals like bar charts to show constant $500 Year 1 rates and escalating rates for fairness.
• Community Engagement: Promote U.S. citizen student opportunities through high school fairs and college outreach events.

IX. Feedback Mechanism

To ensure the levy’s ongoing ehectiveness:

• Stakeholder Input: Online portal for universities, U.S. citizen students, and communities to provide feedback.
• Review Periods: Biennial reviews adjust rates or enrollment caps, ensuring adaptability and fairness (e.g., constant $500 Year 1 rate).
• Legislative Codification: Advocate for Congressional legislation to codify the levy for long-term impact.

X. Collaborative EHorts

To enhance implementation:

• Interagency Coordination: Department of Education, IRS, DHS, and SEVP streamline levy collection, audits, and vetting.
• State and Local Partnerships: Align state education boards and universities with levy goals to boost U.S. citizen enrollment.

XI. Foreign Student Vetting & National Security

To protect national security and prioritize U.S. citizen students in critical academic fields:

• Enhanced Vetting: Strengthen SEVIS vetting for F-1 and J-1 students in STEM and sensitive programs, addressing risks like intellectual property theft (e.g., 80% of DOJ’s 2023 IP theft cases involved foreign students, DOJ data).
• Agency Roles: DHS, SEVP, DOJ, and Department of Education collaborate on vetting and levy enforcement.
• Transparency: Public disclosure of foreign student enrollment practices (visa status, program of study). Universities conduct enhanced background checks for foreign students in sensitive fields, verified by SEVP audits.

Summary

The U.S. Citizen Student Education Protection Act transforms U.S. higher education through an enduring single-tax pillar framework, prioritizing U.S. citizen students, reducing reliance on foreign students, and enhancing national security. Its fair, tiered approach—constant $500 rates for short-term exchange students and escalating rates for longer-term programs—creates equitable opportunities, expands access for American students, and mitigates security risks.

By fostering ongoing scholarships, infrastructure development, vetting, and enforcement, the Act ensures a resilient, citizen-led educational system.

Congress is urged to codify this Act to secure a competitive, secure, and equitable future for American citizen students.

Appendix – NAICS Proposal Summary (July 2025)

A formal proposal to establish NAICS Code 611319 – International Student Enrollment and Compliance Serviceshas been submitted to the Economic Classification Policy Committee at the U.S. Census Bureau.

• Purpose: Recognizes the international student enrollment process—recruiting, visa coordination, SEVIS compliance, and work authorization—as a distinct economic sector.
• Economic Impact: Encompasses 1.5 million international students contributing $40 billion annually to the U.S. economy.
• Policy Application: Supplies federal agencies and lawmakers with accurate data to support levies, domestic enrollment targets, and national security priorities.
• Production Process: Defined by specialized university offices and systems for international compliance.

The classification of this new industry code reinforces the legislative framework of the U.S. Citizen Student Education Protection Act, creating the statistical infrastructure necessary for accountability, enforcement, and sustained reform.