Trump’s Potential Funding Halt Leaves Progressive Institutions Concerned
Cal Dooley & Kai Goldstein| February 4, 2025
"Donald Trump" by Michael Vadon is licensed under CC BY-SA 2.0.
The Trump administration’s attempt last week to halt all federal grants, loans and financial aid was impeded by a federal judge, and a lawsuit from 22 states and DC claiming that Trump’s decision was unconstitutional. As the administration continues to press for spending cuts targeting “wokeness,” the future of progressive institutions remains uncertain.
The original memo, issued January 28 by the U.S. Office of Management and Budget (OMB), incited nationwide chaos and panic from organizations, such as educational institutions like Warren Wilson College (WWC), who depend on federal assistance to provide public services. The administration argued that the memo was necessary to ensure that federal spending complied with Trump’s recent executive orders, but widespread backlash forced the OMB to rescind the memo two days after issuing it.
One day before rescinding the memorandum the OMB issued a statement clarifying the intended scope of the freeze. The office states that the freeze was intended only for programs implicated in Trump’s executive orders to:
Roll back green energy policies & fossil fuel restrictions
Ban Diversity, Equity and Inclusion (DEI) initiatives
Ban “Woke Gender Ideology”
Use federal funds for Elective Abortion
Realign Foreign Aid
Repress Immigration
A coalition of 23 attorney generals led by Lileta James of New York sued the OMB to halt the freeze.
“This administration’s reckless plan to block federal funding has already caused chaos, confusion, and conflict throughout our country,” James said on January 28. “The President cannot unilaterally halt congressional spending commitments.”
WWC students receive federal financial assistance, which has students concerned about the future of their financial aid and on a larger scale, the future of the college. Although the Pell Grant and student loans would likely not be at risk from a pause in financial funding, other forms of aid could be.
WWC President Damián Fernandez addressed the freeze and the string of executive orders targeting DEI initiatives, pledging to maintain the college’s progressive values as the implications of the federal changes become clearer.
“We will continue to uphold, defend and advance belonging and inclusion,” Fernandez said in an email to students.
Katie Moore graduated from WWC last year after serving on the Financial Aid Crew and Work Program Office Crew. They now work as an assistant to the Director of Work. Moore finds the recent administrative action to be an insult to basic living needs.
“I think Trump’s whole argument has always been that he is for the working class, which this directly goes against,” Moore said. “Why anybody ever thought he was for the working class is beyond me.”
The grants that could be affected by a withdrawal of federal funding are discretionary grants, such as those reserved for minorities or people with disabilities. These grants depend on federal aid, which some students are not sure can be relied on anymore.
Zach Levis, a freshman at WWC, was initially disappointed to hear the news, but after nearly a week of similar executive orders, was not shocked. Like many other students, he has hope that things will be okay.
“I would love to say I was surprised, but I’ve been through these four years already, so I can’t say I’m terribly surprised,” Levis said. “We can only hope.”
The Trump administration and House Republicans continue to press for large cuts in federal spending, though a more thoroughly drafted plan has yet to surface.
