Potential freezes on federal loans and grants nationwide would affect higher education, healthcare access and more.

Trillions of dollars in federal funding are in limbo after a federal judge temporarily blocks Trump’s freeze on federal grants. Confusion and uncertainty looms over schools, nonprofits and companies that rely on federal money. 

The decision to freeze funding, which was announced by the White House budget office Monday night, is part of an attempt to conduct “an across-the-board ideological review.” The freeze is coupled with an order to undo progressive steps on transgender rights, fossil fuel production, and diversity, equity and inclusion (DEI) programs. 

The two-page memo, which was authenticated by the Washington Post, announcing the freeze said, “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.” 

In a press conference held this afternoon, Gov. JB Pritzker doubled down on his commitment to defend the people of Illinois against Trump policies that have the potential to be harmful. “The state of Illinois will fight this unlawful order with everything we have,” Pritzker said. “We’re working with the Attorney General, who has moved forward with other states to continue pursuing legal action to protect the people of Illinois.”

The Illinois attorney general is one of 23 generals filing a lawsuit to block the freeze that was scheduled for 5 p.m. Tuesday.

Attorney General Kwame Raoul said at the conference, “In our lawsuit, we allege that our Constitution, through the separation of powers in Article One, Section One, and through the Spending Clause, gives Congress alone the responsibility to approve the appropriation and spending of federal funds, including to the states.”

Pritzker and Raoul both expressed that the actions of the Trump administration were illegal. 

Tuesday morning, DePaul President Robert L. Manuel, Raoul, and DePaul faculty and staff met at the Lincoln Park Campus to discuss the future of higher education, including the potential cut in funding. Here’s what we know so far: 

• What action is the school taking? 

In a note to students and parents, Manuel said the university is assessing how DePaul’s federal research grants will be affected by the freeze. He added that the university is working closely with government officials, including the Illinois attorney general, to understand how a freeze would impact the DePaul community. 

• How will it affect student loans and on-campus jobs? 

The U.S. Department of Education said in a statement that the freeze does not apply to federal student loans or Pell grants. Pell grants and loans will not be delayed because of the order. Funding for the federal work-study program, which helps fund campus jobs, will also not be affected. “Student financial aid will continue to be processed and certified without disruption,” according to Manuel’s note. 

• How will it affect DePaul’s budget? 

At this point, we do not know how DePaul’s budget will be affected by the freeze. 

Democrats are declaring the order unlawfully encroaches on Congress’s authority over federal spending. White House press secretary, Karoline Leavitt, described it as a review of federal spending and said that it would not impact direct aid to individuals. 

However, as of Tuesday morning, Illinois reported that state agencies could not access federal funding sites, including Medicaid. Almost 4 million lower-income people in Illinois relied on Medicaid for health care coverage in 2023; roughly a quarter of Illinois’ population is currently eligible for coverage. 

Medicaid website access was later restored Tuesday afternoon.  

“This is a demonstration of cruelty against people who depend on us,” Pritzker said. “Working families who rely on federal assistance to pay their rent, people who need help paying their utility bills, parents who need critical programs like Head Start for quality, affordable child care and 3.5 million Illinoisans who get their health insurance through Medicaid.”

According to Pritzker, there has been no communication to him from the Trump administration about the freeze. “When our agencies reached out to the federal agencies, we literally were informed that they are not to speak with us,” he said.

As of right now, it is unclear how exactly the potential freeze could affect the state and university.

Header photo by Lauren Sheperd