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Trump’s Financial Aid Freeze Temporarily Blocked Amidst Backlash

The opinions expressed in this article are the writer’s own and do not reflect the views of Her Campus.
This article is written by a student writer from the Her Campus at FSU chapter.

**Disclaimer: This is a developing story.** 

On Monday, Jan. 27, the White House Office of Management and Budget (OMB) ordered a freeze and review on federal financial assistance through an internal memorandum written by the office’s Acting Director, Matthew Vaeth. The order, initially going into effect on Tuesday, Jan. 28 at 5 p.m., was temporarily blocked by U.S. District Judge Loren L. AliKhan. Courts will be reevaluating the issue on Monday, Feb. 3. 

The initial OBM directive stated that federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance.” This caused confusion for various students, parents, and institutions, who questioned if this would affect student loans, grants, and after-school initiatives.  

Florida State University’s own Division of Research created a dedicated webpage in the event that the recent executive orders and actions impacted funding for research projects. The page includes guidance for both students who are submitting proposals and students who have received awards. 

What Could a Freeze Affect? 

“This is not a blanket pause on federal assistance and grant programs from the Trump administration,” new Press Secretary Karoline Leavitt stated in a White House Briefing on Tuesday. “If they feel that programs are necessary and in line with the president’s agenda, then the Office of Management and Budget will review those policies.”  

Later in the afternoon, the OBM released a Q&A on the White House website with the goal of addressing the confusion that was sparked. The page states that the order “is expressly limited to programs, projects, and activities implicated by the President’s Executive Orders, such as ending DEI, the Green New Deal, and funding nongovernmental organizations that undermine the national interest.”  

The OBM also states that this does not affect “any program that provides direct benefits to Americans,” such as Social Security, Supplemental Nutrition Assistance Program (SNAP) benefits, Medicare, and Medicaid. The Department of Education has also stated that the order will not affect funding for programs, including student loans, Pell Grants, Title I funding for high-poverty schools, and the Individuals with Disabilities Education Act program. 

What the freeze could do, however, is pause any financial aid that isn’t in accordance with Trump’s recent executive orders. The following executive orders are listed in the OBM’s clarification: Protecting the American People Against Invasion, Reevaluating and Realigning United States Foreign Aid, Putting America First in International Environmental Agreements, Unleashing American Energy, Ending Radical and Wasteful Government DEI Programs and Preferencing, Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government, and Enforcing the Hyde Amendment. 

The freeze, according to the OBM page, establishes a process in which programs inconsistent with these Executive Orders would be paused and evaluated. Despite the backlash, the OBM states that this freeze is necessary because “new administrations must review federal programs to ensure that they are being executed in accordance with the law and the new President’s policies” in order to “act as faithful stewards of taxpayer money.” 

The Congressional Response 

In addition to the federal judges seeking a block to the order, several members of the U.S. government have argued that this order is unconstitutional. Representative Rosa L. DeLauro and Senator Patty Murray, Ranking Member and Vice Chair of the Congressional Committee of Appropriations, wrote a letter urging Vaeth to “uphold the law and the Constitution and ensure all federal resources are delivered in accordance with the law.”  

DeLauro and Murray cite the Impoundment Control Act of 1974 (ICA), which was formed in response to when then-President Richard Nixon refused to release Congressionally appointed funds. This act limits the executive office’s budgetary power, instead placing the majority of that power with Congress.

It also prevents the president from withholding funds to achieve policy goals, a point that has been brought up in response to the language used in the OBM’s memo, which states that “the use of Federal resources to advance Marxist equity, transgenderism, and Green New Deal social engineering policies is a waste of taxpayer dollars.” 

Additionally, Congress members are citing Congress’ “power of the purse.” This comes from Article I, Section 8 of the U.S. Constitution, also known as the Spending Clause. The clause gives Congress the “Power to lay and collect Taxes, Duties, Imposts, and Excises.” Past precedents from the Supreme Court have extended this to grant Congress legislative authority for federal programs, such as Social Security, Medicaid, and federal education programs.  

Chuck Schumer, the Senate Democratic Leader, calls the move “a dagger at the heart of the average American family” in a statement made on Tuesday. “This, plain and simple, is Project 2025 by another name,” Schumer stated. 

Despite this clarification, state programs have reported being locked out of the federal health payment system Tuesday afternoon, with Medicaid being locked out in all 50 states. While the systems are back online as of Tuesday evening, this comes days after several pages on the White House website displayed 404 error messages, including the pages for the U.S. Constitution and Bill of Rights, biography pages of former presidents, the Office of Gun Violence Prevention, and the entirety of the Spanish-language version of the White House website. These pages have yet to be restored despite White House officials confirming they will be. 

This action by the OBM comes alongside several other acts by the current administration that have received backlash, including but not limited to withdrawing the U.S. from the Paris Climate Accord, revoking the security clearance of several intelligence officials, and renaming the Gulf of Mexico to the Gulf of America (which Google Maps will now be complying to).  

The same day that the initial memo was sent, Trump signed four executive orders affecting the military, including one that bans transgender service members, an order he implemented in 2017 that was later repealed in 2021 by then-President Biden. Trump has also ordered the creation of an “American Iron Dome” and the elimination of military policies relating to diversity, equity, and inclusion (DEI). 

On Tuesday evening, following the temporary block of the financial aid freeze, the Trump administration announced the “deferred registration program,” which offers financial incentives to two million civilian full-time federal workers to quit their jobs.  

The offer, sent through email to employees, comes with the caveat that many government agencies will likely be downsized through reconstructions and layoffs. The email states to employees, “At this time, we cannot give you full assurance regarding the certainty of your position or agency, but should your position be eliminated, you will be treated with dignity…The reform of the federal workforce will be significant.” 

The offered program would allow employees to remain on the payroll until Sept. 30 and allow workers until Thursday, Feb. 6, to decide whether to take part. By then, courts will have revisited the proposed freeze on financial aid and reform of the current administration’s budget. 

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Piper Greisl is a junior at Florida State University pursuing two degrees: a B.S. in Media Communication Studies and a B.A. in Theatre under the Stage Management track. Additionally, she is pursuing a minor in English and a minor in Classics. Alongside writing, Piper enjoys reading literary fiction and thrillers; baking brookies; playing video games; hanging out with her pet snake Ophelia; and showing off her vinyl collection. Piper also writes as a student blogger for BroadwayWorld and works as a choreographer and backstage coordinator at Young Actors Theatre.