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AIEA conference

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US Student Market Share Declines: TNE & Partnerships Rise

by Emma Walker – News Editor February 27, 2026
written by Emma Walker – News Editor

The United States will once again withdraw from UNESCO, the United Nations Educational, Scientific and Cultural Organization, effective December 2026, the State Department confirmed on July 22, 2025. The decision, mirroring a previous withdrawal in 2017, stems from concerns over the agency’s focus on what the administration deems divisive social and cultural causes and its alignment with the UN’s Sustainable Development Goals.

The move, announced by the Trump administration, reverses a decision made two years prior by the Biden administration to rejoin UNESCO. According to a statement released by the State Department, continued US involvement is “not in the national interest.” The White House has also accused UNESCO of promoting anti-Israel speech, echoing concerns raised during the initial withdrawal in 2018.

UNESCO Director-General Audrey Azoulay expressed deep regret over the decision, stating it contradicts the principles of multilateralism and will disproportionately affect US communities seeking World Heritage site inscription or Creative City status. “This decision contradicts the fundamental principles of multilateralism,” Azoulay said in a press release. “UNESCO has prepared for it.”

Despite the withdrawal, UNESCO officials maintain the organization has diversified its funding sources and mitigated the financial impact of reduced US contributions. Since 2018, efforts to restructure and attract voluntary contributions have offset the declining US financial support, reducing the US share of the organization’s budget to 8% compared to 40% for some other UN entities. Voluntary contributions have doubled during this period.

The decision comes as the international education landscape undergoes significant shifts. While the total number of internationally mobile students reached 7.3 million in 2025, the US share of that market has been steadily declining. From 28% in 2001, the US now holds 16% of the international student market, with further declines anticipated.

Industry delegates at the AIEA conference were urged to focus on improving student recruitment processes, despite policy challenges. Megan Prettyman, VP partner success at UniQuest, emphasized that US institutions often lag behind competitors in responding to student inquiries. “We can’t control immigration policy or broader political rhetoric, but we can control how we indicate up for prospective students,” she said. Comparative data indicates US institutions are slower to respond to prospective students than those in Australia, New Zealand, and the UK.

Transnational education (TNE) is emerging as a key strategy for US institutions seeking to maintain global competitiveness. QS executive director of the Americas, Ben Webb, hailed “the great pivot” towards TNE, envisioning “education without passports.” However, Kirsten Fedderson, IDP vice president of partnerships, cautioned against viewing TNE as a temporary fix. “You’ve got to think of it as a 20-year investment in a market rather than just going there to ride out the storm,” she said.

Graduate enrollment presents unique challenges, with a 12% decline reported in 2025, while undergraduate levels grew by 2%. Recruitment at the graduate level is often decentralized, making it less adaptable to policy changes, according to Jessica Sandberg, IDP’s VP for external affairs USA. Graduate students have shorter timelines and are more sensitive to political and economic instability. Concerns were raised about applicants from Nigeria and Iran, whose access to US study has been impacted by existing travel restrictions.

A recent IDP survey revealed that 40% of graduate students have a worsened perception of the US since the previous year, and 82% are now considering multiple study destinations. The survey also found that 66% of graduate students would reconsider their plans if post-study work opportunities, such as OPT, were eliminated.

Institutions are increasingly focused on building resilience through international partnerships. IIE’s global partnerships survey found that 84% of respondents believe the international partnership landscape has changed, with over half reporting more than 100 international partnerships. The survey highlighted a shift towards more strategic, multi-functional partnerships, with institutions broadening their geopolitical portfolios and strengthening ties with the Global South. Sylvia Jons, director of IIE’s Centre for International Partnerships, noted a decline in ceremonial agreements and increased accountability for partnership outcomes.

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