Trump Administration Tightens Visa Rules and Curtails International Students’ ‘Internship Opportunities,’ Risking a Repeat of Britain’s Talent Loss

U.S. Government Narrows CPT Eligibility to Internships Required for Degree Completion
Restricted Access to Internships Threatens the Employment Pathway from OPT to H-1B
U.S. Study Demand and the International Talent Pipeline Could Both Contract

As universities worldwide race to attract international talent, the United States is beginning by narrowing access to internships undertaken while foreign students are still enrolled. The Donald Trump administration has limited Curricular Practical Training (CPT) to practical training that is mandatory for degree completion, disrupting career preparation for international students who have relied on elective courses to acquire corporate work experience. When combined with the unemployment limits under Optional Practical Training (OPT) and the burden of the H-1B lottery, the measure could fundamentally alter the calculus behind choosing to study in the United States. In effect, the United States risks repeating the United Kingdom’s failure, when closing post-graduation employment pathways drove international students toward competing destinations.

Guidance Allows Only Internships Directly Integrated into Academic Programs

According to foreign media reports, including those by The Wall Street Journal (WSJ) and The Associated Press, on Aug. 31 local time, the U.S. Department of Homeland Security (DHS) recently notified major universities that it would tighten internship requirements for international students. Until now, international students have been able to work as corporate interns during summer breaks and other periods under CPT while remaining on student visas. Going forward, however, internships will be permitted only when a formal agreement exists between the university and employer and CPT is mandatory for every student in the relevant degree program.

DHS warned that universities failing to comply could lose their authorization to enroll foreign students. Federal regulation 8 CFR 214.2(f)(10)(i) defines CPT as an integral component of an established curriculum, including internships, cooperative education programs and required practical training offered under agreements between universities and employers. DHS said the regulation itself remained unchanged, but U.S. Immigration and Customs Enforcement (ICE) indicated that it would no longer permit schools to establish curricular relevance merely by having students enroll in elective courses.

Following the federal government’s warning, U.S. universities immediately began suspending or restricting CPT applications from international students. The University of California, Los Angeles (UCLA) recently paused certain CPT approvals while reviewing the federal guidance. UCLA said it would determine its next steps after completing its review of the new federal guidance. The University of California, Berkeley also effectively suspended the processing of some CPT applications. Its international office said a memorandum issued on Aug. 24 was narrower, more explicit and more restrictive than previous guidance. The University of Southern California (USC) likewise decided that, beginning Aug. 24, it would approve new CPT applications only for practical training required to complete a degree.

CPT as a Route to Building Experience Before Graduation

The measure is widely interpreted as reflecting the Trump administration’s belief that foreign students are taking jobs away from U.S. university graduates. CPT is a program that allows international students holding F-1 visas to participate in internships or practical training related to their field of study while enrolled. Corporate internships, cooperative education programs and degree-related practical training have traditionally fallen within its scope. A core requirement is that the work must be incorporated into the established curriculum, regardless of whether it is paid or unpaid. For international students, CPT therefore provides a pathway to apply classroom knowledge in a corporate setting and accumulate professional experience before graduation.

Another important feature is that universities have the authority to approve CPT. After confirming that the practical training is related to the student’s field of study, a designated school official (DSO) records the employment information in the Student and Exchange Visitor Information System (SEVIS) and issues a new Form I-20. The student may work only for the employer and during the employment period specified on the I-20, without obtaining a separate Employment Authorization Document (EAD). By contrast, OPT requires applicants to undergo review by U.S. Citizenship and Immigration Services (USCIS) and obtain an EAD.

These institutional characteristics have made CPT a critical component of international students’ employment preparation. Many U.S. companies use internships as a recruitment process for assessing candidates’ professional capabilities and organizational fit before offering permanent positions. According to a 2025 report by the National Association of Colleges and Employers (NACE), based on a survey of 247 organizations, employers extended full-time offers to an average of 62% of their interns during the 2023–2024 academic year, while the actual conversion rate fell below 51%. NACE also noted that experience gained at the same company or within the same industry is a major factor distinguishing candidates during recruitment.

Table 1. Stages of Employment Authorization for International Students in the United States

Tighter CPT Rules Make Entry into Full-Time Employment and H-1B Status More Difficult

Because internships and permanent recruitment are closely intertwined in the United States, employment authorization for international students has traditionally progressed in stages. Students typically acquire work experience related to their major through CPT while enrolled and then use OPT after graduation to compete for permanent positions. Regular OPT is available for 12 months, while graduates in science, technology, engineering and mathematics (STEM) may receive an additional 24 months of employment authorization, allowing them to work in the United States for up to three years.

Finding an employer willing to sponsor an H-1B petition during the OPT period is considered the next hurdle. The hiring company must file the petition, and applicants subject to the annual quota must enter a lottery. Eligible OPT participants have also been able to receive a “cap-gap” extension, which prevents gaps in legal status and employment authorization during the transition to H-1B status. Obtaining permanent residency through employment-based immigration requires a separate adjudication process.

The problem is that weakening CPT could destabilize this pathway from its starting point. Students would remain eligible to apply for OPT after graduation, but the permitted unemployment period is capped at 90 days under regular OPT and 150 days in total when STEM OPT is included. Students unable to establish local work experience and employer connections while enrolled would face the considerable burden of securing both their first full-time position and the prospect of visa sponsorship within this brief window. For international students who have treated a U.S. degree and local employment as an integrated proposition, CPT restrictions inevitably diminish the value of studying in the United States.

U.K. Employment Transitions Plunged 87% in Five Years After Abolition of Post-Study Work Visa

A precedent for shrinking employment pathways depressing international study demand can be found in the United Kingdom in 2012. Under an immigration-restriction policy led by then-Home Secretary Theresa May, the British government closed new applications for the Tier 1 Post-Study Work (PSW) visa for students from outside the European Economic Area (EEA) in April of that year. Previously, graduates of British universities had been allowed to remain in the country for two years while seeking employment without employer sponsorship. After the program was abolished, however, they were required to transition to a Tier 2 work visa sponsored by a government-licensed employer before their student visas expired. This meant they generally had to secure sponsorship from a licensed employer within four months of completing their studies, meet salary and occupational requirements, and transition to a Tier 2 work visa. The pathway from university into employment was effectively reduced to a single narrow channel.

Once the system changed, graduates’ entry into the labor market immediately collapsed. According to an analysis of Office for National Statistics data by Universities UK (UUK), the number of international graduates transitioning from student visas to employment-related visas fell 87%, from 46,875 in 2011 to 6,037 in 2016. The British government argued that freely opening the labor market to international graduates was inappropriate when even domestic graduates were struggling to find work. However, small and medium-sized enterprises without Tier 2 sponsorship licenses found it more difficult to hire international students, while the pool of companies to which graduates could apply contracted sharply.

International Study Demand Cooled as Employment Pathways Closed

The repercussions of the narrower employment pathway soon spread to the admissions market. India reacted most acutely. The UK Council for International Student Affairs (UKCISA) found that, because many Indian families financed tuition through commercial loans, demand for study in the United Kingdom cooled rapidly once plans to repay those loans through post-graduation employment became uncertain. According to the Higher Education Statistics Agency (HESA), the number of students from India fell from approximately 39,000 in the 2010–2011 academic year to 22,375 in 2012–2013 and 16,550 in 2016–2017, dropping to less than half its former level. Growth in Chinese enrollment supported the overall figures, but universities heavily dependent on South Asian demand bore the full impact of the recruitment shock.

The period of British stagnation coincided with rapid expansion among competing destinations. According to UUK, international student enrollment increased by only 0.7% in the United Kingdom between 2012 and 2015, compared with 18.0% in Australia, 26.9% in Canada, 16.3% in Germany and 22.5% in the United States. The number of international students in the United Kingdom declined in the 2012–2013 academic year for the first time since the early 1990s and then remained stagnant at around 440,000 for six years. At the University of Glasgow, Indian student enrollment fell 40% between 2011 and 2013, while enrollment in taught postgraduate programs declined 54%. The university estimated its lost tuition revenue in 2013 at approximately $2.3 million. A House of Commons Library estimate that international student tuition accounts for 23% of total U.K. university income illustrates the potential repercussions that shifting demand from a single country can have on university operations.

International Student Departures Pressure University Finances and Talent Acquisition

As the loss of international students strained university finances and the country’s ability to secure talent, calls gained momentum in the British Parliament to reassess the costs and benefits of abolishing the PSW visa. In a 2014 report, the House of Lords Science and Technology Committee concluded that a four-month job-search period was excessively short and that abolition of the PSW visa had harmed international students, recommending its immediate reinstatement. The British government did not reverse course until seven years later. Launched in July 2021, the Graduate Route granted bachelor’s and master’s graduates two years and doctoral graduates three years to seek and undertake employment, without requiring prior employer sponsorship, a job offer or a minimum salary. The British government presented the policy as a means of retaining global talent and attracting 600,000 international students annually by 2030. However, the permitted stay for most graduates is scheduled to be shortened to 18 months from January 2027, once again intensifying the conflict between immigration restraint and university competitiveness.

The British precedent offers a guide to the potential consequences of CPT restrictions for U.S. universities. PSW permitted graduates to remain and seek work after completing their studies, whereas CPT allows students to undertake practical training related to their majors while still enrolled. Yet both have served as critical links connecting expensive overseas degrees with local professional experience. In a survey of prospective international students across 56 countries cited by the House of Commons Library, employment prospects ranked as the leading factor in selecting a study destination at 64%, followed by university reputation at 61%, while post-graduation visa policies also ranked among the top considerations. If CPT restrictions compound OPT unemployment limits and the burden of the H-1B lottery, students are likely to reconsider their plans to study in the United States altogether. Should they redirect their interest toward countries offering stable employment pathways, universities in their home countries, or English-language degree programs in Europe and Asia, U.S. universities could lose both tuition revenue and research personnel, while companies could see the pipeline of future talent weaken.