Huge win for US high school and college students. Not so good for bloated college administrations.
Every benefit must be judged by its cost.
In this case, it's self-funding. International students subsidize much cheaper in-state tuition.
And if you mean them getting spots in the more prestigious institutions, well, it's not clear whether that will even happen (the few thousand international students admitted to the top universities are not the ones that are likely to decline their acceptance letters), but even if it did, well, those universities are simply not as prestigious anymore.
Attracting the best talent from anywhere in the world is a huge part of what created their prestige, and that's even before we get to how they're losing funding, and professors and researchers to other countries.
Go look at a current list of people at Princeton’s IAS and count how many are former international students.
2. Top performing US students arent being crowded out by international students anyway.
Immigrants make up 14% of the population but start more than 20% of businesses.
44% of fortune 500 companies are founded by immigrants or their children. Steve Jobs' dad was a Syrian immigrant student. Elon Musk was on F1, J1, and H1B visa.