This is really really significant, especially with the other news of arresting Judge Hannah Dugan for opposing an ICE kidnapping in her courtroom. The legal system is forcing them to at least slow their destructive policy implementation and they don't like that.
But also, this is too little too late. Many students have already fled, and those that haven’t will never trust the government again. If you directly threaten someone’s livelihood to the point that they start making international travel plans to get away from you, simply going “oops my bad” isn’t enough to restore their trust.
It will likely have a chilling effect for this entire generation of students.