Federal funding freeze update for students

President Donald Trump rescinded a memo freezing federal grants after a federal judge temporarily blocked the initial memo on Tuesday.

The administration says they will still be reviewing federal spending. There will no longer be a federal freeze of funding.

Trump wanted to pause federal funding so his administration could complete an ideological review of where federal grants are distributed.

This decision comes after Trump has passed 46 executive orders so far this term. His administration says they want to make sure federal loans and grants comply with his executive orders.

It has been clarified that the federal funding freeze would not halt programs like Medicaid and Supplemental Nutrition Assistance Program. It would also not have halted student loans.

For students at Penn State, there is lingering uncertainty about what a funding review means for them. Below are some categories and information related to this federal funding review.

Penn State created a community updates website and all information can be found here:

https://www.govt.psu.edu/community-updates/

Research Grants and Funding

Penn State has received some stop-work orders from some work funded by specific agencies. These agencies include the Department of Energy, Department of the Interior, NASA and USAID. The university will communicate with researchers and the research community.

Preparing and submitting progress reports should be continued as a part of funded research. Researchers are still able to travel and continue their current projects.

If research is funded by the four agencies mentioned above, they directed Penn State to immediately cease all diversity, equity, inclusion and accessibility-related projects.

Penn State is continuing to observe what exactly DEIA federally funded research projects are and will communicate with researchers.

If you have any questions, please contact Robin Riglin in the Office of Sponsored Programs at rbs15@psu.edu.

Federal Student Aid

Individual aid like direct loans, Pell Grants and other federal student aid is not impacted. Federal work-study programs and the GI Bill are both still up and running.

Most students have already received this federal aid and it’s been recorded in their Spring 2025 payment plan in their University Bursar account.

Students can check LionPATH for an up-to-date account of their Spring 2025 financial account. Penn State is encouraging students to fill out the 2025-26 FAFSA to be eligible for federal, state and institutional aid.

The university will continue to monitor executive actions and orders related to federal student aid.

Community Resources

The university provided a list of resources at the bottom of the community updates website.

They are listed below:

Student Care and Advocacy: 814-863-2020

Counseling & Psychological Services: 814-863-0395 for University Park students

Center for Sexual and Gender Diversity: 814-863-1248

International Student and Scholar Advising: 814-865-6348

Julia Henry is a second-year majoring in broadcast journalism and labor and human resources. To contact her, please email jbh6443@psu.edu.