Donald Trump‘s new administration is eliminating certain government programs and funds. One week after the 78-year-old placed federal DEI employees on paid leave, White House Office of Management and Budget acting director Matthew Vaeth announced a pause on federal grants and loans. Since many American university students rely on financial aid, does this mean that the free application for federal student aid (FAFSA) has been paused?
In a new memo, Vaeth claimed that the “use of federal resources to advance Marxist equity, transgenderism and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” according to a copy of the memorandum obtained by CNN on Tuesday, January 28. “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.”
Vaeth further elaborated that “each agency must complete a comprehensive analysis of all of their federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the president’s executive orders.”
So, what will happen to the FAFSA and federal student aid altogether? Find out below.
Why Is Trump Freezing Federal Grants and Loans?
According to Vaeth’s memorandum, this “temporary pause [of grants] will provide the administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the president’s priorities.”
When Are Federal Grants Being Paused?
Trump’s administration is pausing certain federal grants and loan programs at 5 p.m. ET on Tuesday, January 28. It’s still unclear which programs will be impacted. However, Vaeth indicated that social security and medicare benefits will not be affected, per NBC New York.
Is FAFSA Paused?
It’s unclear if this temporary seizure of federal loans and grants will affect the FAFSA and student financial aid. In Vaeth’s memo, he indicated that the pause on grants will be implemented “to the extent permissible under applicable law.”
Is Trump Ending the Pell Grant?
The White House has not indicated a termination of the pell grant. The financial assistance is the largest federal grant that undergraduate students use to pay their tuition and fees. A student who qualifies for the pell grant can obtain the assistance by submitting a FAFSA application.
Did Trump Stop Food Stamps?
It’s also unclear if food stamps will be paused under this new action.