Federal funding is instrumental in backing colleges and universities across the U.S., aiding not only students but research, development and local economies associated with these institutions. The role of funding is so critical that its decrease or withdrawal can severely undermine affected colleges or universities.
In contrast to common belief, the education system in the U.S. is largely the responsibility of state and local governments, not the federal jurisdiction. While the U.S. Department of Education cannot dictate curriculum, it compensates by offering supplementary financial support across all education levels.
The Department of Education finances K–12 programs geared towards economically underserved schools, supporting higher education institutions via Pell Grants, federal student loans, work-study opportunities, and research and development funding.
But what happens when this vital funding is jeopardized? The consequences can be considerable for schools, students, scientific research, and local economies. Colleges or universities experiencing cuts in their federal funding may have to hike up tuition fees, limit or postpone access to financial aid, and might need to downsize staff.
Moreover, freezing of research grants not only puts a halt on potential breakthroughs in key fields but can also render associated careers less attractive. Several universities have reduced the intake of graduate students as career-building projects and graduate programs lose their footing.
Recent analysis by Associated Press revealed nearly 100 colleges and universities probed by the Trump administration for alleged illegal promotion of diversity, equity, and inclusion, or for not tackling presumed antisemitism during protests against Israel’s war in Gaza. These institutions received a total of over $33 billion in federal funding in 2022–2023 academic year, excluding federal student aid.
Furthermore, the administration has expressed intentions of eliminating the Department of Education altogether, shifting the federal student loan portfolio to the U.S. Small Business Administration (SBA). Despite the essential role the federal government has been playing in enabling colleges and universities to support students and vital research, resultant cuts in federal funding could lead to the elimination of significant programs, job losses, and reduced student services.