On Jan. 27, the Trump administration ordered a sudden freeze on federal funding, sending shockwaves through universities, nonprofits and state agencies that rely on federal grants. The freeze was quickly rescinded on Jan. 29 following public backlash and legal challenges.
The directive was initiated by the Office of Management and Budget (OMB). Memo M-25-13 directed that agencies temporarily pause loan and federal financial assistance programs that are “implicated by the president’s executive orders,” according to the White House.
Scheduled to go into effect at 5 p.m. on Jan. 28, the freeze was temporarily blocked by District Judge Loren L. AliKhan before the White House rescinded the action on the following day.
The announcement led to widespread confusion among organizations and individuals who rely on federal funding, particularly college students. Many took to social media searching for answers, afraid of losing their financial aid resources.
Misinformation swept across the web, leading to numerous false claims regarding the FAFSA. The U.S. Department of Education has since clarified that federal student aid funds were not impacted by the initial freeze and will still be disbursed as usual. This includes direct loans and Pell Grants.
“I think what President Trump is trying to do is a lot of what any new leader would do during a time period of their first couple of months in office,” said ETSU President Brian Noland. “They’re facing budget challenges, debt challenges and trying to ensure that they have a sense of where their money is being spent and how those investments align with priorities.”
The university reached out to numerous federal partners, including the American Council on Education (ACE), to get a better sense of the actions taking place on the federal level.
“Fortunately as of midday Tuesday, we were able to discern that this did not impact Pell Grants, it did not impact loans, and it did not impact the bulk of things that many of our students at ETSU rely upon,” said Noland.
ETSU remains a thriving institution with fully funded academic programs, up-to-date building facilities and steady enrollment rates. Noland assures students and the community that ETSU is “in top shape” and stands ready for possible changes coming from the federal government.
Currently, 89 percent of undergraduate students at ETSU are receiving some form of financial aid for the academic year, while 53 percent are receiving federal financial aid.
“This is not a time for students to worry,” Noland said. “Pell Grants are as well funded as they’ve ever been in the history of the United States. Many of our students from Tennessee have HOPE Lottery Scholarships, so the things that you rely upon to pay your tuition and fees are in solid shape.”
Noland reminds students that the Tennessee economy is growing and many federal decisions do not directly impact the university, as policies typically come from the state level.
“We’re going to continue to pay close attention and listen closely to our federal partners,” he said.
These organizations play key roles in shaping higher education policy, advocating for public institutions and providing research and resources to support colleges and universities nationwide. They include the American Council on Education, the American Association of State Colleges and Universities, the Association of Public and Land-Grant Universities and the Tennessee Higher Education Commission at the state level.
“My advice to students is to be patient and to recognize that your Pell Grant, your federal work-study and the investments the state have made in you are long-term investments that this nation and our state have made for decades,” Noland said.
As the new federal administration continues making changes, misinformation can flood online platforms. ETSU’s administration takes caution and releases only informed announcements based on accuracy and clarification. Students and the community are always encouraged to confirm information with reliable sources including federal websites, the Department of Education and university officials.
