Australia will raise its cap on foreign students by 9% to 295,000 in 2026, the Albanese government announced Monday, with a renewed focus on applicants from Southeast Asia.
This comes as the United States has moved in the opposite direction. Under US President Donald Trump’s second-term, a sweeping overhaul of the foreign student visa program is underway, marking one of the most significant pullbacks in the country’s global education footprint.
Australia has decided to increase the limit after a year of tightened migration controls and a 2024 cap of 270,000 that helped reduce what officials described as “out of control” student numbers, reported Reuters.
Australia granted nearly 600,000 student visas in the 2023 financial year, reflecting a post-pandemic boom in education migration. While China and India remain the two largest source countries, Canberra is now strategically pivoting toward Southeast Asia as part of its broader foreign policy to reduce economic dependence on China. India, which remains a leading source of international students in the country, is likely to benefit from the move..
“This is about making sure international education grows in a way that supports students, universities and the national interest,” said education minister Jason Clare in a statement cited by the news agency.
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The new allocation includes roughly two-thirds of seats for universities and one-third for the vocational training sector. Larger public universities will also be required to demonstrate access to adequate student housing and increase Southeast Asian enrolments to receive higher individual quotas.
In Australia, the international education sector contributed over A$51 billion ($33 billion) to the Australian economy in 2024, making it the country’s largest services export.
US visa curbs signals strategic retreat
Meanwhile, the US administration has implemented a series of restrictive measures since early 2025 — including suspensions of new visas for certain universities, a brief ban targeting Harvard, and enhanced social media surveillance for applicants.
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These steps signal what observers describe as the securitisation and politicisation of student inflows.
The result has been a chilling effect on prospective international students, particularly from Asia. Once the world’s top destination for higher education, the US is now viewed by many as unpredictable and unsafe.
Early 2025 data cited in a Hindustan Times report, indicates a noticeable decline in international applications, especially in graduate STEM programs from India, China, and South Korea.
