Trump’s Funding Freeze: Impact on Federal Aid and University Research

On Jan. 27, the Trump administration’s Office of Management and Budget attempted to freeze federal grant funding, causing concern for colleges, universities, charitable organizations, and others.

Although U.S. District Judge Loren L. AliKhan temporarily blocked the funding freeze just minutes before it was set to take effect, the potential impact of the freeze continues to worry educators, students, and parents.

The possibility of cuts to federal aid raises concerns among college students, many of whom rely on federal grants, loans, and work-study programs to finance their education. However, government officials have stated that FAFSA and other federal student aid are not currently affected by the freeze.

Yukon Ebbitt, a recent graduate from Pitt-Greensburg and accountant, believes the freeze will not impact FAFSA or other federal grants.

“The federal student aid organization has stated on their website that the freeze is not affecting FAFSA or other Pell Grants by the initial guidance, and the awarding and disbursement of federal student aid is ongoing,” Ebbitt said.

Brian Beighley, director of financial aid at Pitt-Greensburg, said he’s still keeping watch for any changes that would impact students, but for now there seems to be no impact. 

“Let’s hold on for now. The Executive Order was rescinded, so there is no impact now,” Beighley said. “We can take a look again mid-March as I think that is when we will hear some news of changes.”

In other news related to Trump’s executive orders, Joseph J. McCarthy, provost and senior vice chancellor, expressed concern in a Feb. 8 email about the National Institutes of Health’s recent decision to cap indirect costs at 15%, which is part of the broader federal funding changes initiated by the Trump administration.

This policy aligns with recommendations from Project 2025, which advocated for capping indirect costs at universities.

The decision could result in less funding for research infrastructure, budget strains on universities, and a potential decrease in research output, which could impact graduate students and faculty.

“The full impact of this change in the short and long term remains to be seen, but there is no doubt that our collective scholarly impact could be harmed irreparably, as could our broader mission,” McCarthy said. “We recognize time is of the essence, as is the importance of taking our next steps thoughtfully. We will continue to keep you updated as more information becomes available.”