Federal Financial Aid Unaffected by Recent News, State Chancellor Says

Although a January 28 memo from the Office of Management and Budget (OMB) establishes a freeze on federal grants and loans, federal financial aid to students will continue, according to a message from California Community College Chancellor Sonya Christian.

Christian sent an email Tuesday morning to community college administrators with a clarification from OMB. It explained that Memo (M-25-13) “Temporary Pause of Agency Grant, Loan, and Other Financial Assistance” from Matthew J. Vaeth, OMB acting director, would not affect student’s federal financial aid. Two Q&As were excerpted from the clarification:

“Q: Is this a freeze on all Federal financial assistance?  

A: No, the pause does not apply across-the-board. It 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.  

Q: Is this a freeze on benefits to Americans like SNAP or student loans?  

A: No, any program that provides direct benefits to Americans is explicitly excluded from the pause and exempted from this review process. In addition to Social Security and Medicare, already explicitly excluded in the guidance, mandatory programs like Medicaid and SNAP will continue without pause.  Funds for small businesses, farmers, Pell grants, Head Start, rental assistance, and other similar programs will not be paused. If agencies are concerned that these programs may implicate the President’s Executive Orders, they should consult OMB to begin to unwind these objectionable policies without a pause in the payments.” 

Cypress College Financial Aid information can be found here.

%d bloggers like this: