Confusion ruled the discussion this week after a memo from the Office of Management and Budget, published Tuesday evening, disclosed a two-week temporary suspension of federal agency grant, loan, and financial assistance programs, sparking concerns over its potential impact on education and workforce development.
“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,” the memo’s first paragraph states.
While the OMB framed the freeze as an opportunity for program evaluations, legal challenges quickly followed. A federal judge issued an administrative stay, delaying the funding pause until Monday, Feb. 3.
Delta College reviews potential impact
Delta College officials assesed how the proposal could affect campus programs.
“The OMB’s memo is broad. Exactly which grants, loans, and programs might be impacted is somewhat unclear as of this writing. Delta College is reviewing all federal grants and is awaiting further details on how this action will be implemented,” said President/Superintendent Dr. Lisa Aguilera Lawrenson in a memo sent by Director of Marketing and Communications Alex Breitler campuswide late Tuesday afternoon.
Lawrenson’s memo notes that “the situation is very fluid and could change” but the college had been advised that the freeze did not “freeze all ‘across-the-board’ federal financial aid assistance” and does not “freeze benefits to Americans such as SNAP or student loans.”
SNAP is the Supplemental Nutrition Assistance Program. In 2022, more than 110,000 people received SNAP benefits in San Joaquin County, according to data from the U.S. Census Bureau.
Federal Aid in question
Initial statements from the Department of Education suggested that student aid programs, including Pell Grants and Direct Loans, would not be affected.
“The temporary pause does not impact ‘assistance received directly by individuals.’ As such, Title IV, HEA funds that are provided to individual students, such as Federal Pell Grants and Direct Loans, are not impacted by yesterday’s guidance,” Madi Biedermann, spokesperson, told NBC News.
However, the reassurance came into question later in the day when the OMB released a document listing all of the federal programs that are currently under review as part of the pause. Career Technical Education (CTE), Migrant School Programs and Pell Grant appear on the list of affected programs.
An OMB Q&A document also stated that the pause 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.”
Legal Challenges
On Tuesday afternoon, just minutes before the pause was set to take effect, U.S. District Judge Loren L. AliKhan temporarily blocked the order following a lawsuit filed by nonprofit organizations that rely on federal funding. The ruling prevents the freeze from affecting existing programs until at least Monday, Feb. 3, while legal challenges continue.
California Attorney General Rob Bonta joined a coalition of 23 state attorneys general in a lawsuit to block the freeze’s implementation, arguing that it would disrupt funding for critical programs.
What ‘s next?
For now, the legal challenges have put the freeze on a hold that allows schools and organizations to review potential impacts.
Delta College relies on federal funding for Pell grants with 27% of the student population receiving an average of $3,924, according to U.S News Education. The status of Career Technical Education programs remains unclear, as the college awaits for further updates.
As legal processes continue and federal agencies assess the situation, the extent of the funding freeze’s potential impact remains uncertain.
