The University of North Texas is dealing with a serious money problem. According to FOX 4, school now expects a $45 million budget deficit, about $14 million more than it had earlier predicted. University leaders say this is not a short-term issue. They are calling it a “structural” deficit, meaning the gap in money will not fix itself anytime soon. A big reason behind this shortfall is believed to be the sharp drop in international master’s student enrollment.
On the other, the state has now paused H-1B visa sponsorships, adding new uncertainty for foreign scholars and researchers.
Why international students matter so much
By comparison, International students usually pay much higher tuition and fees than students from Texas. For years, that helped the university grow. Citing UNT President Harrison Keller’s letter to staff, FOX 4 reported that the decline in these students has hit the university’s finances hard. These students usually pay much higher tuition and fees than Texas residents. For years, that extra revenue helped the university grow.
In a letter to staff, Keller did not hide his concern. “Nobody could have envisioned what was going to be happening in international student enrollments,” he said. He explained that programs such as data science and computer science depended heavily on international master’s students. “A significant number of those master’s students, particularly in some fields, data science, computer science, were international master’s students,” Keller said. When those students stopped enrolling in the same numbers, the financial hit was immediate.
Federal visa changes and fewer students
University officials say changes in federal immigration policy have made it harder for many international students to enroll and remain in the United States. In January, the State Department said it had revoked 8,000 student visas as part of its mission to “Keep America safe.” Around the same time, data from the National Student Clearinghouse Research Center showed nearly 10,000 fewer foreign students enrolled in graduate programs in Fall 2025.
From 2025 to 2026, new international student enrollment dropped by 17%. That decline led to about $1.1 billion in lost revenue nationwide and nearly 23,000 fewer jobs. Texas alone saw an estimated loss of $64.6 million.
Keller says this is not just a UNT problem. “When I talk to colleagues across the state, this is part of a larger trend that we’re seeing,” he said. UNT has warned that budget cuts will be felt across campus. What exactly will be cut is still unclear. More details are expected when Keller addresses the board of regents.
Texas pauses H-1B visas at public universities
While universities are already struggling with falling enrollment, Texas has now paused sponsorship of specialty H-1B visas at public universities and state agencies. Governor Greg Abbott ordered the pause until the end of the next legislative session on May 31, 2027.
H-1B visas are the country’s largest temporary work visa program. Congress sets a yearly cap of 85,000 visas. They are meant for highly skilled workers in specialty fields who hold at least a college degree. The visa usually lasts three years and can be extended up to six. At public universities, H-1B holders often include post-doctoral fellows, professors, clinical faculty and researchers.
Abbott argued that the program has “too often been used to fill jobs that otherwise could, and should, have been filled by Texans.”
“I don’t see any reason why we need any H-1B visa employees in our public schools in the state of Texas,” Abbott said Monday. “But we’re going to find out if there’s some unique skill set or whatever the case may be.” For many academics, the decision came as a shock. The Texas Medical Center, which includes universities and hospital systems that rely heavily on temporary work visas, could feel a major impact.