Study-abroad scholarships and government-exchange programs are facing “profound” uncertainty after the U.S. State Department temporarily halted federal grant funding for both.
On Feb. 12, a 15-day pause on federal funding for all current and future grant disbursements this year took effect, putting students and staff on high alert. Grant and scholarship recipients aren’t the only ones affected — funding also supports the staff who administer these programs and ensure their success.
“While we have no indication
that funding will be discontinued permanently, the ripple effect of uncertainty caused by the State Department’s action without notice, explanation or public statement, is profound,” Melissa Torres, president of the Forum on Education Abroad told The PIE News. “At present, there is no additional detail, nor has a rationale been provided.”The pause affects several key initiatives, including the Fulbright Program, IDEAS Program, Gilman Scholarship, and Critical Languages Scholarships. The State Department’s lack of clarity about
their next steps has caused confusion among recipients and providers. Some Fulbright locations were instructed by local embassies to halt their work, while others initially paused but have since resumed activities.“Without the immediate resumption of funding, there may be large numbers of international educators laid off, impacting local communities and economies,” Torres said. “It is unclear why certain students are receiving different instructions.”
With some FY2025 grant awards already removed from the State Department’s website,
many recipients are hesitant to reopen applications without assurance of future funding. Elsewhere, current study-abroad students will be affected by funding delays; those who planned their studies based on anticipated Gilman funding may now be forced to cancel their programs for the spring or summer.Beyond the immediate effects on students and educators, Torres warned that losing these grants would “unquestionably” leave the U.S. “weaker, less secure, and less economically competitive,” depriving both the business community and society of future leaders studying in the country.
The Forum for Education Abroad is collaborating with key industry organizations to address the “rapidly unfolding” situation, urging affected institutions to gather financial data and firsthand accounts of the impact.
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