Fund cuts, visa scrutiny: What is happening in US varsities, how Indian students are affected

The situation is similar at other elite universities in the US.

At Harvard, the Trump administration’s decision to freeze more than $2 billion in long-term research grants has put a halt to work across a wide range of medical, engineering, and scientific fields. The action came in response to the rejection of White House demands for changes that the University argues infringes on its independence and constitutional rights and exceeds the administration’s lawful authority.

The National Institutes of Health (NIH) had halted an estimated $110 million in grants to Harvard and its associated hospitals since late February.

At Columbia, nearly 180 researchers funded by federal awards lost their jobs, and campus publications described the fallout as “soul-crushing.” Even a later $200 million settlement with the government did little to restore confidence, with faculty warning that “the rules, and the money, feel volatile.”

These changes stem from a sweeping new law —the H.R.1, or the One Big Beautiful Bill Act, passed in July — as well as a sudden freeze of billions of dollars in federal research grants.

This week, the US State Department has confirmed the revocation of over 6,000 student visas, some tied to funding collapses and others to political activity.

For Indian students, who form one of the largest international student groups in the US, this turbulence cuts across three critical areas: funding, immigration, and future job stability.

What is happening to international students in the US?

Visa scrutiny has intensified. The US State Department has revoked more than 6,000 student visas this year—of these, roughly 4,000 were linked to alleged criminal violations, while 200–300 related to “support for terrorism,” frequently in connection to pro-Palestinian activism. US immigration officials are now vetting visa applicants’ social media for “anti-American” or “antisemitic” content, making every post a potential risk.

In many cases, people’s Student and Exchange Visitor Information System (SEVIS) records were abruptly terminated, only to be later reinstated by federal courts, even for those who had not filed formal lawsuits.

What challenges are Indian students facing in securing US visas?

In response to a directive by the State Department, consulates have paused scheduling new appointments for F-1 visas, leaving many hopefuls stranded or forced to defer plans. Meanwhile, when interviews are granted, applicants face an unprecedented level of scrutiny: they’re often required to make their social media profiles public, and consular officials can interpret any privacy setting or post as suspicious.

The effects of these policies come through in the numbers. From March to May this year, the US issued 9,906 F-1 visas to Indian students, the lowest count for that period since the pandemic, marking a steep 27% drop from the previous year. That same window in 2023 saw nearly 15,000 visas issued.

In parallel, the cost of obtaining a US visa is rising sharply. From 2026, all non-immigrant visa applicants, including students, must pay a 250-dollar (around 21,000 rupees) Visa Integrity Fee, plus additional charges like a 24 -dollar ( around 2000 rupees) I-94 fee, on top of the standard visa processing fee.

Starting September 2, the US Department of State will require in-person visa interviews for nearly all non-immigrant visa applicants, including children under 14 and seniors over 79, two groups previously exempted. This policy, issued on July 25, reverses earlier COVID-era relaxations and affects key visa categories such as: B-1/B-2 (tourist/business), F and M (students), H-1B (work), J (exchange).

What is the role of the One Big Beautiful Bill Act?

In July, the US government passed a major new law called the H1 Bill or the H.R.1. It allows the government to borrow more so it can keep paying its bills, but it also cuts back on how much the government spends in different areas. For universities, this matters because government agencies now have less money to give out for research, and the law also makes wealthy private universities pay a higher tax on their endowments, which are like their savings funds.

This means universities will have less extra money for research projects and student support. For Indian students, especially those who depend on research jobs or financial aid, this could mean fewer opportunities and more competition for the funding that is left.

How does this affect F-1 visa status or your future H-1B application prospects?

When a student is on an F-1 visa, their legal right to stay in the US depends on one simple thing: that they remain a full-time student with valid enrollment and financial support. For many Indian students, especially at the graduate level, this enrollment is tied directly to research assistantships (RAs) or teaching assistantships (TAs), which are in turn funded by federal research grants.

By raising taxes on wealthy universities (Ivy leagues) and squeezing federal spending, the government has shrunk the pot of money available for research grants and student aid. If a student’s assistantship is paid through one of these grants and the money dries up, their tuition waiver and stipend can vanish overnight. That puts international students in danger of not being able to pay for classes and that can push them “out of status” on their F-1 visa.

Looking at the H-1B visa, which most Indian students aim for after graduation, the risks persist. The H-1B process requires showing that the students have the qualifications and a job offer in hand. If research labs and departments are scaling back, international students may have fewer opportunities to publish, gain US work experience, or secure high-profile internships, things that strengthen one’s H-1B application.