LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7022 NOTE PREPARED: Jan 4, 2025
BILL NUMBER: HB 1435 BILL AMENDED:
SUBJECT: STEM Enrollment.
FIRST AUTHOR: Rep. Smaltz BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: This bill requires the board of trustees of each state educational institution (SEI)
to adopt a policy that prohibits certain foreign students from enrolling in or receiving instruction in a
qualifying STEM program offered by the institution. The bill requires that the policy be established and
enforced not later than August 15, 2025. It also provides that the policy must apply to certain foreign students
who enroll in an institution after August 15, 2025.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Summary – This bill requires SEIs to adopt a policy prohibiting
students who are citizens of foreign adversaries from enrolling in certain programs or receiving instruction
in certain fields. These provisions will lead to a short-term drop in tuition revenue for some SEIs as well as
additional administrative costs, but the bill’s requirements should be able to be met within existing resources.
[SEIs receive appropriations from the General Fund.]
Additional Information – This bill will primarily affect students from the Peoples’ Republic of China, and
primarily affect Purdue University, which has the largest engineering programs of the type specified in this
bill. There are an estimated 980 Chinese students currently enrolled in Purdue’s College of Engineering.
Upon disenrollment from their current programs, these students are likely to leave the university, resulting
in a potential decrease of tuition and fees received by Purdue of approximately $30,844 per undergraduate
student. These programs are highly-ranked and could attract enough other qualified applicants to fill the
vacancies in the programs. The timing of the disenrollments may result in an unequal distribution of student
cohorts and may necessitate changes to the numbers and/or sizes of different class sections. The overall
impact to SEI finances will depend significantly on the timing of disenrollments and the ability of affected
programs to recruit additional students in a timely manner.
Explanation of State Revenues:
Explanation of Local Expenditures:
HB 1435 1 Explanation of Local Revenues:
State Agencies Affected: State educational institutions.
Local Agencies Affected:
Information Sources:
https://www.purdue.edu/treasurer/finance/bursar-office/tuition/fee-rates-2024-2025/undergraduate-tuitio
n-and-fees-2024-2025/;
https://www.purdue.edu/newsroom/2023/Q4/report-ranks-purdue-among-top-10-universities-for-internati
onal-student-enrollment/
Fiscal Analyst: Alexander Raggio, 317-234-9485.
HB 1435 2