(CAMBRIDGE) Harvard University has posted a $113 million operating deficit for fiscal year 2025, its first shortfall since 2020, even as its endowment rose nearly 12% to $56.9 billion. The university’s red ink is drawing attention far beyond Cambridge: higher education finance is tightly linked to international student flows, campus-based research jobs, and visa sponsorships. Analysts say the Harvard deficit could shape hiring and aid decisions at elite schools, with knock-on effects for F-1, J-1, and H-1B pathways that thousands of global students—especially from India—depend on each year.
Why the deficit matters to international students and scholars

Harvard’s shortfall reflects several pressures that have grown across U.S. academia: shrinking federal research support, rising labor and compliance costs, and new federal taxation rules that target large university endowments. While Harvard can tap reserves and manage through a single-year gap, budget stress at a flagship institution serves as a warning that even wealthy campuses will make harder choices.
Those choices often touch the areas international students rely on most:
- Scholarships and institutional aid
- Research assistantships (RA) and teaching assistantships (TA)
- Paid research roles and postdoc positions
- Post-graduation work routes anchored in university labs and centers (OPT, H-1B sponsorships)
How budget stress translates into fewer visa-linked opportunities
For students and early-career researchers, timing matters. Admissions and aid decisions for 2026 are being shaped now, while Washington debates policy ideas that would adjust visa fees and compliance costs. When universities face budget cuts, analysts at VisaVerge.com note common responses:
- Slow hiring in research groups
- Trim assistantships and fellowships
- Pause or scale back new projects
These steps reduce campus-based opportunities tied to student and exchange visitor categories and can tighten the funnel from study to work. The scale of Harvard’s operating deficit may push peer institutions to revisit their risk plans, especially if they face similar grant volatility and wage growth.
The mechanics: institutional backing and immigration touchpoints
International students need institutional backing at every step—from initial documents to post-graduation employment authorization. When a university tightens spending, it can indirectly affect these touchpoints:
- Fewer funded positions and lab openings
- Fewer bridge roles that carry visa support
- More uncertainty about renewals for grant-funded posts
Over time, that can shift who enrolls, who stays, and who transitions to long-term research or industry roles in the U.S.
“Budget decisions often touch the very areas international students rely on most: scholarships, research assistantships, teaching roles, and post-graduation work routes anchored in university labs and centers.”
Policy headwinds: endowment tax and fee proposals
A reported increase in the federal endowment tax—from 1.4% to 8%—adds a new layer of cost for top institutions, potentially limiting funds that would otherwise support financial aid and international recruitment. If universities respond by raising tuition or trimming aid, the impact will land hardest on price-sensitive students, including many Indians who target U.S. master’s and doctoral programs as a path to research and jobs.
This dynamic, paired with rising visa-related fees proposed in federal discussions, could make the American route more expensive just as Canada 🇨🇦, Australia, and the U.K. sharpen their post-study work promises.
Practical indicators to watch on campus
International students and scholars should monitor campus signals that often predict the health of OPT and H-1B pipelines:
- Funding for RA/TA positions
- Hiring patterns in labs and departments
- Availability of bridge fellowships and postdoc slots
- Announcements of hiring freezes or paused grant-backed projects
If departments announce cuts or slowdowns, expect fewer student workers and postdoc openings—both of which reduce visa sponsorship possibilities.
The step-by-step immigration map (and where budgets matter)
Common steps from admission to work, and why budgets affect each:
- Schools issue an I-20 for F-1 students (core to SEVIS fee and the DS-160 visa interview).
- See SEVIS guidance on the Form I-20.
- Exchange visitors receive the DS-2019 before a visa appointment.
- Program details: DS-2019.
- After study many F-1 graduates request employment authorization with I-765.
- USCIS: Form I-765.
- STEM graduates complete a training plan on I-983 with employer and school.
- SEVIS instructions: STEM OPT.
- For H-1B research/teaching roles universities file I-129 petitions.
- USCIS: Form I-129.
- Others use I-539 to change or extend status.
- USCIS: Form I-539.
- Nonimmigrant visa application: DS-160.
- State Dept. overview: DS-160.
- For broader H-1B context (including cap-exempt university pathways): H-1B Specialty Occupations.
If budgets compress, universities may scale back the positions that make these filings possible.
Short-term contracts vs. long-term visa stability
Financial constraints can push schools toward one-year grants and short-term contracts that don’t align with visa stability. A one-year appointment might fund a research role, but without renewal guarantees institutions may hesitate to sponsor longer-term roles. That dynamic matters for postdocs and research staff who need steady institutional support to maintain status and continue projects.
Broader economic and recruitment effects
When a university spends less on international recruitment and aid, the incoming class composition shifts:
- Students with personal funds may fill more seats
- Those relying on assistantships or scholarships could lose out
If an endowment excise tax reduces aid, the net effect may be fewer sponsored students and diminished entry into the U.S. research ecosystem. These outcomes ripple through lab staffing, publication output, industry partnerships, and campus career fairs that help seed OPT job placements.
What departments and applicants should ask now
Prospective students should be proactive. Key questions to ask departments and programs:
- How many funded RA/TA lines are expected this year, and are they guaranteed or grant-limited?
- Are there current hiring freezes, delayed searches, or paused projects affecting training roles?
- Are fellowship stipends and assistantship amounts keeping up with local living costs?
- What backup plans exist if grant funding slips?
Practical steps for applicants and current students:
- Ask for written details about funding duration and renewal conditions.
- Monitor department and faculty hiring announcements.
- Map backup plans with off-campus employers in case lab-based OPT or postdoc roles don’t materialize.
- Stay in close contact with international student offices for early warnings about funding shifts.
Employer and policy implications
Employers that rely on university pipelines should plan ahead. If labs scale down, industry teams will see fewer graduate assistants moving into internships and entry-level roles. Companies can:
- Deepen ties with multiple campuses
- Support collaborative projects
- Budget for mentorship and early-career training roles
Policywise, lawmakers will likely use Harvard’s numbers in debates about fee allocations, oversight of elite university finances, and targeted research support. Depending on how the debate lands, universities could face either relief that supports aid and hiring, or new costs that lead to further tightening.
Specific exposure for OPT, STEM OPT, and H-1B filings
- Many OPT placements tie to university-linked projects or employer partnerships seeded through labs.
- Employer support for STEM OPT training plans under I-983 requires staff time and resources that may be scarcer during hiring freezes.
- Universities file I-129 petitions for H-1B roles across labs and centers; fewer funded positions mean fewer filings and a narrower pipeline from graduate training to long-term work.
The stakes for Indian students and other international applicants
For Indian students in particular, the message is clear: watch university finances as closely as visa rules. A school’s balance sheet shapes assistantship offers, lab hiring, and the number of roles that can evolve into sponsored positions post-graduation. If aid shrinks and fees rise simultaneously, total costs can jump, forcing trade-offs between program prestige, location, and the likelihood of a funded role.
Timing and recovery prospects
Some departments recover quickly when a large grant lands or the economy improves; others adjust slowly with multi-year effects on hiring. Applicants should:
- Ask about outlooks for the next academic year and the following one
- Request honest assessments of backup plans and the department’s track record of bridging students when grants slip
Final takeaways and recommended actions
Harvard’s $113 million gap is more than a line item—it signals tightening conditions around international education and post-study work. The operating deficit for fiscal year 2025 highlights the fragile links between university finances, research jobs, and visa sponsorship.
- Departments should be candid and prioritize preserving roles that sustain the education-to-employment pipeline (RA/TA lines, lab-based training, H-1B-eligible roles).
- Students and scholars should ask direct questions about funding, monitor hiring and project activity, and prepare backup plans.
- Employers and policymakers should coordinate with universities to maintain pathways for talent even when budgets tighten.
VisaVerge.com reports that close coordination between universities, employers, and policymakers can keep the pipeline open, even when budgets tighten. That coordination—and prudent, transparent institutional choices—will determine whether the American education-to-work model remains the first choice for global talent.
This Article in a Nutshell
Harvard University reported a $113 million operating deficit for fiscal year 2025 despite a nearly 12% endowment rise to $56.9 billion. The shortfall stems from reduced federal research funding, rising labor and compliance costs, and potential increases in federal endowment taxation. Analysts warn that budget pressures could prompt hiring slowdowns, cuts to RA/TA lines, trimmed fellowships, and fewer paid research and postdoc positions—reducing H-1B filings and narrowing post-study work pathways. International students, notably from India, may face fewer funded spots and higher effective costs if tuition or fees rise. Applicants should ask departments about guaranteed funding, monitor hiring patterns, and prepare backup plans. Employers and policymakers should coordinate to preserve educational-to-employment pipelines even amid tightening budgets.