The Trump Administration’s Latest Crackdown on Legal Immigration

Summary

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WSJ What’s News – PM Edition

Episode Title: The Trump Administration’s Latest Crackdown on Legal Immigration
Date: July 16, 2026
Host: Alex Osola (Wall Street Journal)

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Overview

This episode delivers a fast-paced roundup of the day’s top business and policy headlines, with a central focus on the Trump administration's newly announced regulation that limits the duration of foreign student visas. The episode explores the impact this may have on higher education, tech companies, and legal immigration more broadly, along with major developments in energy markets, pharma, financial regulation, and evolving legal trends in marriage contracts.

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Key Discussion Points & Insights

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1. Debt Lawsuits on the Rise

Timestamps: 00:34–02:50

• Key Statistic: Despite big US banks reporting healthier consumers and lower credit card delinquencies, debt lawsuits hit their highest levels in years across several states.

• Example: In Missouri alone, lawsuits doubled to over 120,000 since 2019.

• Lagging indicator: Dan Frosch notes that lawsuit data reveals stress on consumers not always apparent in recent bank figures.

  “Americans are clearly still struggling with inflation with elevated prices. And what we see here with the lawsuits is sort of a lagging indicator.” — Dan Frosch (01:45)

• Typical debt involved: Most lawsuits are for under $4,000.

• Consequences: Results often in wage garnishing, liens, or asset seizure, with many default judgments occurring due to lack of legal know-how or unresponsiveness.

  “You can have your wages garnished, you can have a lien put on your home, you can have assets seized.” — Dan Frosch (02:20)

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2. Chevron’s Strategic Pipeline Plans & Energy Markets

Timestamps: 02:50–04:40

• Chevron’s Move: Plans to bypass the vulnerable Strait of Hormuz by joining a consortium to build a pipeline connecting Iraq to Syria’s Mediterranean coast.
• Global Context: Rising energy infrastructure investment due to geopolitical risk in the Middle East.
• Market Impact: US diesel prices surged to over $5/gallon, exacerbated by Russia’s diesel export ban and dwindling domestic stockpiles.
• Other Financial News:
  • Chip stocks dragged Nasdaq down 1.5%.
  • SpaceX stock closed below IPO level for the first time.
  • Netflix reported a 9% profit rise but shares slipped after hours.
  • Trump’s media company announced plans to sell real-time access to Truth Social posts to financial firms.
  • White House teleprompter operator investigated for betting on presidential speeches.

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3. Trump Administration’s Crackdown on Student Visas

Timestamps: 06:04–08:22
Guest: Michelle Hackman – WSJ Immigration Reporter

Policy Details:

• Change: Maximum term of student visas capped at four years.
• New Barrier: Students must apply for extensions if their education extends beyond four years.

Impacts:

• Graduate Programs Affected: Many international students pursue PhDs lasting 5–6 years, leading to major uncertainty.

  “This creates a huge amount of uncertainty about, are you going to be denied midway through your degree?” — Michelle Hackman (06:29)

• Optional Practical Training (OPT) at Risk: OPT lets students work for 1–3 years post-graduation. Under new rules, students finishing in four years must reapply and risk being denied OPT, threatening their job prospects and pathways to H-1B visas.

  “It's a really big reason why international students come to the US...this regulation basically says once you finish your four-year degree, you need to apply again in order to take advantage of that OPT and you could be denied.” — Michelle Hackman (06:44)

Impact on Companies:

• Tech & Financial Firms Vulnerable: Tech companies, banks, and Wall Street depend on OPT as a bridge to long-term visas.

  “It's been a pathway for people to basically stay in America.” — Michelle Hackman (07:38)

Motivation:

• Rationale: Administration cites fraud and students overstaying through continuous enrollment.

  “The Trump administration think that the way that the current visa program is set up really promotes fraud, promotes people staying in the country longer than they should.” — Michelle Hackman (07:57)

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4. Pharma Breakthrough: New Cholesterol Drug

Timestamps: 08:26–09:10

• Approval: FDA greenlights Merck’s Lipfendra, a first-of-its-kind cholesterol pill.
• Efficacy: Cuts “bad” cholesterol by up to 60% beyond statins, with studies underway for broader cardiovascular benefits.
• Market Reaction: Merck shares up 3.3%, with analysts projecting peak annual sales over $5 billion.

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5. Wildfire Smoke and Air Quality Concerns

Timestamps: 09:10–09:16

• Situation: Wildfires in Canada causing severe haze and poor air quality in the Northeast and Midwest; EPA advises limiting outdoor activity.
• Uncertainty: Unknown how long poor air quality will last, with implications for upcoming public events like the World Cup final in New Jersey.

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6. Iran Releases US Citizen Amid Geopolitical Tensions

Timestamps: 09:16–09:56

• Breakthrough: Iran allows Dina Karari, a US-Iran dual citizen, to leave after being held since December 2024.
• Backdrop: Comes as the US continues strikes to restrain Iranian military capabilities in the Strait of Hormuz.
• Ongoing Issue: Over 10 other US nationals remain detained in Iran.

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7. Prenuptial Agreements Evolve to Protect Stay-at-Home Parents

Timestamps: 09:56–11:32
Guest: Erin Mulvaney – WSJ National Legal Affairs Reporter

• Growing Trend: More prenups now include explicit financial protections for spouses who step away from their careers to raise children.

• How it works: Provisions might require separate accounts, enhanced alimony, or retirement savings for the stay-at-home parent.

  “It's mostly about money, how much money you'd get in alimony and how that would ultimately be divided.” — Erin Mulvaney (10:28)

• Without Clause: Risk of one ex-spouse left with little, having lost earning capacity while the other’s career flourishes.

  “One person in the couple might end up with like nearly nothing…” — Erin Mulvaney (11:02)

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Notable Quotes

• Michelle Hackman on Student Visa Change:

  “This creates a huge amount of uncertainty around are you going to be denied midway through your degree?” (06:29)

• Dan Frosch on Debt Lawsuits:

  “What we see here with the lawsuits is sort of a lagging indicator...” (01:45)
  “You can have your wages garnished, you can have a lien put on your home...” (02:20)

• Erin Mulvaney on Protecting Stay-at-Home Parents:

  “It's mostly about money, how much money you'd get in alimony and how that would ultimately be divided.” (10:28)

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Important Timestamps

• Debt court lawsuits: 00:34–02:50
• Chevron and diesel markets: 02:50–04:40
• Student visa regulation deep-dive: 06:04–08:22
• Cholesterol drug approval: 08:26–09:10
• Wildfire smoke & air quality: 09:10–09:16
• Iranian dual citizen released: 09:16–09:56
• Prenuptial trend: 09:56–11:32

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Tone & Style

• Concise, clear, and fact-rich, in typical WSJ reporting style.
• Explanatory, with a focus on real-world impact for business, policy, and everyday life.
• Balances technical financial news with stories affecting individuals.

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For Listeners

Whether you missed the original episode or want a refresher, this summary captures the breadth of urgent news—from the White House’s move on legal immigration and shifting oil routes in the Middle East to legal trends shaping American households and companies’ futures. The episode is packed with insights for market watchers, policy followers, and those interested in the intersection of law, family, and finance.

Transcript

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[Alex Osola]

the Trump administration will limit how long foreign students can stay in the US this

[Michelle Hackman]

creates a huge amount of uncertainty around are you going to be denied finishing your degree midway through your degree?

[Alex Osola]

Plus Chevron plans to help Iraq find a way to move its oil that doesn't involve the Strait of Hormuz. And regulators approve a first of its kind pill to lower cholesterol. It's Thursday, July 16th. I'm Alex Osola for the Wall Street Journal. This is a PM edition of what's news, the top headlines and business stories that move the world today. We start today's show talking about debt. The big US Banks reporting this week said that their results showed a healthy US Consumer with delinquency rates on credit cards largely lower. But a new report out today from the Pew Charitable Trust shows that debt collectors are bringing even more consumers to court, with lawsuits in 2025 at their highest levels in years across eight states. In Missouri, for example, the number of lawsuits nearly doubled to more than 120,000 since 2019. Journal economics reporter Dan Frosch said the bank's results don't reflect what's happening with all Americans.

[Dan Frosch]

We know that consumers are taking on more debt, and some consumers are struggling with that debt. Americans are clearly still struggling with inflation with elevated prices. And what we see here with the lawsuits is sort of a lagging indicator. So it's certainly possible for these banks to say, hey, we're not having any issue with delinquencies. And that may reflect this particular moment right now, but it's not going to reflect sort of what's happened in the last few years.

[Alex Osola]

Dan says the outcome of these lawsuits can be painful for the people who didn't pay their bills.

[Dan Frosch]

Almost always this debt is for under about $4,000, and oftentimes the outcome is that folks will see a default judgment against them either because they don't know how to navigate the courts or they just simply don't respond. You can have your wages garnished you can have a lien put on your home. You can have assets seized. If you are not able to succeed in fighting these lawsuits,

[Alex Osola]

Chevron will explore how to bypass the Strait of Hormuz for oil from Iraq Chevron plans to sign preliminary deals tomorrow to invest in two Iraqi oil fields, and the oil giant will join a consortium that's considering building a pipeline that would connect Iraq's oil patch with Syria's coast on the Mediterranean Gulf. Governments are pouring billions of dollars into new pipelines and other infrastructure that are alternatives to the Strait of Hormuz. Iraqi Prime Minister Ali Al Zadi met President Trump Tuesday at the White House and visited Chevron's headquarters in Houston today. A Chevron executive says the deals are still a long way from being done, and US diesel futures have surged about 20% since the beginning of last week. That's because in addition to the conflict in the Middle east, one of the world's largest diesel suppliers, Russia, banned exports. The supply crunch is already showing up at the pumpkin. The national average for a gallon of diesel rose to more than $5 today, and analysts say that prices will likely keep climbing as domestic stockpiles, which are already close to the lowest mark since the early 2000s, get smaller. And in stock markets, chip stocks were under pressure. The Nasdaq led the losses in the major indexes closing down 1 1/2 percent. Space X closed under its $135 IPO price for the first time today, finishing at $131.11 a share. It's lost nearly $1 trillion in market cap since its peak of trillion dollars. Netflix reported earnings after the market closed and says profit rose almost 9% to $3.4 billion. The results were largely in line with Wall street estimates, but the stock slipped in after hours trading. President Trump's media company is planning to sell faster access to his Truth Social posts to traders and institutional investors. It'll have real time access in a data feed for those customers starting next month. Financial firms often pay to get data from social media platforms like X milliseconds faster than it becomes available online. Trump Media Service is the latest example of the Trump family mixing its business interest and White House affairs. The company didn't say how much its service would cost. Federal regulators are investigating a White House teleprompter operator for betting on President Trump's speeches. The prediction market platform. Kalshi said the bets were on speeches like the State of the Union. Kalshi froze the teleprompter operators accounts and kept more than $90,000 of his profits. The Journal has learned that the operator, Gabriel Perez, is in talks to settle the civil claims from the Commodity Futures Trading Commission. The White House says Perez has been placed on administrative leave without pay. Coming up, Iran allows a US Citizen to leave the country and the provision that a growing number of engaged couples demand in their prenups. More after the break.

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[Alex Osola]

The Trump administration announced a new regulation today that will limit how long a foreign student can remain in the US On a student visa, making it harder for foreigners to study in the US Journal Immigration reporter Michelle Hackman joins me now with more from Washington. Michelle, this new regulation would create a maximum of four years for a student visa. Then they'll need to apply for an extension if they want to stay longer. How big of a change is this from the existing rules?

[Michelle Hackman]

I know it sounds small because the average college degree is four years, but most international students come to the US actually to go to graduate school and a PhD program is most often five or six years. This creates a huge amount of uncertainty around are you going to be denied midway through your degree? The other big issue is that student visas come with a really coveted perk called optional practical training that allows international students to work on their student visas for anywhere from a year to three years. It is a really big reason why international students come to the U.S. they want the opportunity to be able to work at an American company and then maybe hopefully be sponsored for a longer term visa. This regulation basically says once you finish your four year degree, you need to apply again in order to take advantage of that opt and you could be denied.

[Alex Osola]

And what are the kinds of companies that could be affected by that the most?

[Michelle Hackman]

We're talking about tech companies in Silicon Valley, banks or other companies on Wall Street. It's really hard to sponsor someone. You can't sponsor someone on an H1B visa directly out of school. And so sort of legally you need some kind of bridge to get them to the H1B. And that's what OPT has been. It's been a pathway for people to basically stay in America.

[Alex Osola]

So this new regulation, it's another major piece of the Trump administration's effort to limit legal immigration. Why take aim at students in particular?

[Michelle Hackman]

The Trump administration think that the way that the current visa program is set up really promotes fraud, promotes people staying in the country longer than they should, that they'll come enroll in a US University and then keep prolonging their degrees because under the current system, their student visa is valid until they're no longer enrolled at a university.

[Alex Osola]

That was WSJ immigration reporter Michelle Hackman. Thank you, Michelle.

[Michelle Hackman]

Thank you.

[Alex Osola]

The FDA has approved a first of its kind cholesterol pill. The drug is from the US Pharma company Merck. It's called Lipfendra, and it's designed to help lower cholesterol levels beyond what statins alone can do. Studies show that Lipfedra cuts bad cholesterol by up to 60%. And Merck is now looking at whether the drug can also prevent heart attacks and strokes. Analysts see Litfendra as a big seller for Merck. With peak annual sales of more than $5 billion. Merck stock today closed up 3.3%. And in the Northeast and Midwest, skies are looking a little different than usual. We've all seen the smoky, hazy skies due to wildfires burning in Canada. In New York City tonight, the Statue of Liberty barely visible through the smoke

[Miriam Gottfried]

with thick, hazy air.

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It is just trash out there when it comes to air quality, folks.

[Alex Osola]

The EPA says people should try not to go outside too much. It's not clear how long the hazy air will last. Meteorologists say it could clear up by Saturday in the Midwest, but it's too soon to know what will happen in the Northeast this weekend, when the World cup final is scheduled to be played in an outdoor stadium in New Jersey. Iran has allowed an American citizen to go free. Dina Karari, who is a dual citizen, has been prevented from leaving Iran since she visited in December 2024. President Trump called her release a gesture of goodwill, even as the US Launched more strikes on Iran in an effort to degrade Tehran's ability to attack ships in the Strait of Hormuz. Washington nonprofit Global Reach says that more than 10American nationals are still illegally held in Iran. For many millennials and gen zers, the lead up to a wedding doesn't just involve picking a venue and a dress and a caterer. It also involves lawyers. It's not just that prenups have become popular. There's also a growing number that include what was once a rare provision that's intended to protect stay at home. Parents Journal, National Legal Affairs Reporter Erin Mulvaney has been digging into this and is here now to discuss. Erin, this provision in particular that you were looking at, what does it usually entail?

[Erin Mulvaney]

It would be a trigger in the contract that would slightly change the terms of how the prenup works. It might mean making a separate account just in that parent's name. They could add raises to it. They could creating a retirement account in the same way that you would have for like a 401k in a traditional job. Honestly, it's mostly about money, how much money you'd get in alimony and how that would ultimately be divided.

[Alex Osola]

So if you don't have this kind of clause in your prenup, what could happen if one parent does stay at home and then the parents end up getting divorced?

[Erin Mulvaney]

I'll give you an example. Say you raise the children, you're married for 20 years and then they're out of high school. And so you really have given up all your earning power. And so maybe 50% of a house or the assets isn't even enough to start over your life while the other person has built their career partially because they didn't have to have childcare. So one person in the couple might end up with like nearly nothing and somebody else has everything that they've earned during the marriage.

[Alex Osola]

That was WSJ national legal affairs reporter Erin Mulvaney. Thanks, Erin.

[Erin Mulvaney]

Thank you.

[Alex Osola]

And that's what's news for this Thursday afternoon. Today's show is produced by Anthony Banci and Danny Lewis with supervising producer Talia Arbel. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.

[Miriam Gottfried]

Hey, this is TELL US Demos and I'm Miriam Gottfried.

[Alex Osola]

We're reporters at the Wall Street Journal and The hosts of WSJ's take on the Week. It's a weekly show that gives listene leg up in the world of markets and investing.

[Miriam Gottfried]

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[Alex Osola]

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