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The Trump administration on Wednesday walked back its plan to freeze trillions in federal grants and loans, though a review of thousands of federal programs continues, along with a pause on grant reviews at the National Science Foundation and National Institutes of Health.
A federal judge blocked the plan from taking effect Tuesday night, but the proposal, outlined in a two-page memo, raised a number of questions and concerns from higher ed leaders who warned of devastating consequences. Had the order taken effect, it could have cut off millions in federal aid to colleges, though not federal student loans or Pell Grants. Congressional Democrats and others called the decision to rescind the memo a victory but criticized the Trump administration for causing chaos and confusion.
White House press secretary Karoline Leavitt said on social media that rescinding the memo was “not a rescission of the federal funding freeze,” adding that “the president’s [executive orders] on federal funding remain in full force and effect and will be rigorously implemented.”
So, the White House is still moving forward with plans to stop funding programs that are at odds with the president’s executive orders. In the last week, President Trump has issued executive orders that banned funding for diversity, equity and inclusion programs and “gender ideology” as well as cracked down on illegal immigration, among other issues.
In order to comply with those orders, the National Science Foundation halted grant reviews this week, even before the memo from the Office of Management and Budget. The National Institutes of Health also canceled meetings key to reviewing research grant applications.
The disruption to federal research funding has set university researchers and scientists on edge, and the grant reviews are still on hold, according to numerous sources within the academic research community. On Wednesday, the National Science Foundation said its top priority was to resume funding actions.
“We are working expeditiously to conduct a comprehensive review of our projects, programs and activities to be compliant with the existing executive orders,” a statement posted online reads.
NSF said that all grantees must comply with the orders and cease “all non-compliant grant and award activities.”
“In particular, this may include, but is not limited to conferences, trainings, workshops, considerations for staffing and participant selection, and any other grant activity that uses or promotes the use of diversity, equity, inclusion and accessibility (DEIA) principles and frameworks or violates federal anti-discrimination laws,” the statement said. “Please work with your institutional research office to assist you in complying with the executive orders.”
In addition to the temporary pause, the Office of Management and Budget ordered federal agencies to review more than 2,600 programs by Feb. 7 to ensure they comply with the executive orders. It’s unclear whether that deadline remains now that OMB rescinded the memo.
At the Education Department, programs subject to review include TRIO, Pell Grants, student loans and grants for childcare on campus, as well as those that support students with disabilities and minority-serving institutions. Currently, neither the $229 million fund for Hispanic-serving institutions nor the $400 million grant program for historically Black colleges and universities is included in the review.
As part of the review, agencies will have to answer a series of questions for each program, including whether the programs fund DEI, support “illegal aliens” or promote “gender ideology.”
For programs that might not comply with the executive orders, OMB officials wrote in further guidance sent Tuesday that agency leaders could consult the office “to begin to unwind these objectionable policies without a pause in the payments.”
Kathryn Palmer contributed to this report.