OMB Funding Pause, More EOs Mark Hectic Week for Higher Ed
February 03, 2025

​Following a chaotic first week of the new Trump administration that included more than two dozen executive orders—many affecting higher education—week two followed a similar pattern.

The Trump administration first halted and then rescinded a sweeping directive that would have paused trillions in federal spending, causing uncertainty for colleges and universities nationwide. The administration also issued three executive orders directed at education, including one focused on combating antisemitism on college campuses.

The OMB Memo and Its Aftermath

The Trump administration alarmed the higher education community—and many others—when on Monday night the Office of Management and Budget (OMB) issued a memo instructing federal agencies to halt spending while reviewing funding for alignment with the administration’s executive orders. The unprecedented freeze would have paused trillions in federal spending, generating confusion and concern for institutions across the country.

“This unprecedented order to pause grants, loans, and other direct federal support is causing great harm to millions of Americans, as well as our nation’s overall economy and security,” ACE President Ted Mitchell said in a statement calling on the administration to rescind the memo. “This is bad public policy, and it will have a direct impact on the funds that support students and research.”

A federal judge in Washington, DC, temporarily blocked the order on Tuesday, and by Wednesday afternoon, the White House formally withdrew the OMB directive. However, reports suggest the administration may attempt a refined approach, testing the limits of executive authority.

While institutions should now be able to access most grant disbursements as normal, the EOs from week one aiming to eliminate federal support for DEI initiatives, climate policies, and federally funded research that the administration deems out of step with its agenda remain in place. As a result, federal agencies are continuing to suspend activities that they determine may conflict with these priorities, and this is a rapidly evolving situation.

“For most institutions, you enter a year with very careful plans around what your revenue is, what activities you are pursuing, the courses of study you wish to offer based on understandings of what your enrollments are and what your resources are,” Jon Fansmith, senior vice president of government relations and national engagement, said on a special episode of dotEDU Live recorded last week. “And to say midway through the year, a week, two weeks of time, significant sources of external support will simply be put on hold, no one institution has the formula to fix that, and it's going to have profound impacts.”

Public and legislative backlash played a significant role in the White House’s decision to rescind the OMB memo. Many lawmakers—spurred by concerns from campuses and constituents—raised alarms about the funding freeze’s impact on higher education. Continued engagement with policymakers remains critical to ensuring federal support for colleges and universities.

"Call your representatives, explain what this means to your campus, explain what this means to students you work with—because that is what affects change," Fansmith said on dotEDU.

New Executive Orders Raise Free Speech and Funding Concerns

On Wednesday, the administration issued three additional executive orders, including one focused on combating antisemitism on college campuses. Citing an “unprecedented wave” of discrimination and harassment, the order directs federal agencies to take aggressive enforcement actions, including potential funding consequences for institutions that fail to address related complaints. The administration has also threatened to revoke student visas and deport individuals it deems “Hamas sympathizers.”

The order mandates that the Department of Education submit a report detailing all antisemitism-related complaints and enforcement actions, raising concerns about broad and potentially arbitrary enforcement. While campus safety and anti-discrimination measures are priorities that the higher education community shares with the administration, this approach risks chilling free speech and undermining due process, particularly for international students.

A second EO prohibits the teaching of “discriminatory equity ideology” in K-12 schools and reinstates a mandate from the president’s first term that establishes a 1776 Commission to advance “patriotic education” in public schools, and the third order aims to bolster the K-12 school choice voucher movement.

What’s Next?

ACE is closely monitoring the implementation of these executive orders and directives and advocating for policies that support institutions and balance free speech, campus safety, and student rights. Institutions should maintain open lines of communication with their representatives to share specific challenges these policies may create on their campus, and avoid pre-complying with directives without full guidance from the agency in question

For additional analysis, listen to last week’s special episode of dotEDU Live or register for the next dotEDU Live on Tuesday, Feb. 4 at 4:15 pm ET.

​Higher Education & The Trump Transition Resources