An interesting article at the Wall Street Journal notes that 975,000 international students are enrolled in US colleges and universities this year, up 10% from the year before. Since most of these are full-tuition students, they are attractive prospects for financially strapped US schools. But, it's making it more difficult for US and in-state students to be admitted.
The article focuses on University of California schools, who accepted 62% of in-state applicants last year - down from 84% four years earlier.
According to the article, the UC schools are the most affected. Most other state schools have held in-state admissions steady. (The article doesn't describe the effect on out-of-state US students. Presumably, a full-pay international student might be more desirable than a domestic student who would need financial aid.)
Declining state subsidies in California, UC administrators say, make it necessary to admit more full-pay international students to keep in-state tuition low.