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Watched by Homeland Security Secretary Kirstjen Nielsen (L) and Vice President Mike Pence, US President Donald Trump signs an executive order on immigration in the Oval Office of the White House on June 20, 2018 in Washington, DC. - US President Donald Trump on Wednesday signed an executive order aimed at putting an end to the controversial separation of migrant families at the border, reversing a harsh practice that had earned international scorn."It's about keeping families together," Trump said at the signing ceremony. "I did not like the sight of families being separated," he added. (Provided via MANDEL NGAN/AFP/Getty Images)

Trump pauses federal grants, loans, may affect OU students

This story has been updated to include a comment from OU’s Communications and Marketing department, along with a recent clarification from the U.S. Department of Education.

President Donald Trump announced a pause of all federal loans and grants starting Tuesday at 5 p.m. EST in a memorandum released Monday.

The funding freeze has the potential of upsetting up to $3 trillion dollars of funding in federal loans and grants. According to the Urban Institute, most of these grants and loans go to public welfare, secondary education, health and hospitals, highways and roads, and higher education.

“Financial assistance should be dedicated to advancing Administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending “ wokeness” and the weaponization of government, promoting efficiency in government, and Making America Healthy Again,” Matthew Vaeth, the acting director of the Office of Management and Budget, wrote in the memorandum.

Right before the ban went into effect, it was announced federal judge Loren AliKhan temporarily blocked the freeze, according to the Associated Press. The block will be in effect until Monday.

According to an article from AP, some republicans support Trump’s first week of changes while others are questioning if Trump has the power to dismiss inspectors for 18 offices. Democrats were concerned about Trump removing Medicaid and Social Security, and releasing the insurrection perpetrators.

“This outrageous directive from the Trump White House is a direct attack on the American people,” U.S. Rep. Brendan Boyle, a Democrat from Pennsylvania, wrote in a statement. “It jeopardizes critical programs that millions of families and countless communities depend on—programs that fund healthcare, education, infrastructure, and public safety. By recklessly halting these funds, the administration is not just sowing chaos—it is actively hurting the very people it is supposed to serve.”

Federal agencies will be required to review and identify all federal financial assistance programs and supporting programs making sure they align with the President’s agenda. During this review process, all federal financial assistance must be temporarily paused, including funding to foreign aid, nongovernmental organizations, diversity efforts and the Green New Deal.

Vaeth wrote in the memo all federal funding must align with the activities and policies passed by the Trump administration. For example, Vaeth listed the executive orders: “Protecting the American People Against Invasion,” “Reevaluating and Realigning United States Foreign Aid,” “Putting America First in International Environmental Agreements,” “Unleashing American Energy” and “Ending Radical and Wasteful Government DEI Programs and Preferencing,” which ban transgender people from the military, undo environment initiatives and end diversity programs.

These programs must submit a report to the OMB by Feb. 10. detailing and reviewing the programs, projects and activities paused. In addition, federal agencies must include assignment of responsibility and oversight to a senior political appointee, review any announcements already made and if needed cancel or modify them to be in accordance with Trump's priorities and initiate an investigation of underperforming recipients of federal aid.

The memo said exemptions to the pause may be made on a case-by-case basis depending on if a closeout is required or if required by law. According to an article from the AP, exceptions have been made for Medicare and Social Security; however, there was no explanation about whether the pause will affect Medicaid, food stamps and disaster assistance.

The pause may also greatly impact universities. In 2021, 8.5% of state and local government expenditures were spent on higher education, according to the Urban Institute. A study published by Bellwethersaid federal funding helps universities in three ways: student aid, research development and institutional support.

OU’s Communications and Marketing department said Wednesday morning the university is aware of the memo and is working to determine and understand what long-term it will have on the university. The U.S. Department of Education issued a clarification that Federal Pell Grants and Federal Direct Loans will not be affected. In addition, the U.S. Department of Veterans Affairs stated the GI Bill payments will not be impacted.


@drewhjournalist

dh384223@ohio.edu

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