The University of Wisconsin-Madison announced in a statement Tuesday that the temporary pause of federal grants and loans by the Office of Management and Budget will not apply to this semester’s federal student financial aid, including Pell grants and direct student loans.
“With the spring term starting last week, most students have already had their financial aid disbursements posted and financial aid disbursements will continue throughout the semester,” Chancellor Jennifer Mnookin, Provost Charles Isbell, Jr. Vice Chancellor for Research Dorota Grejner-Brzezińska, told faculty, staff and postdoctoral researchers in their statement..
Nearly 20% of UW System undergraduate students rely on Pell grants to cover tuition and living expenses, and thousands more depend on federal loans to finance their education.
The freeze, which would temporarily halt the distribution of federal funds across various agencies, could also impact research funding at UW-Madison, which receives significant funding from federal agencies including the National Institutes of Health and U.S. Department of Energy. If the freeze extends, projects in advanced medical research, sustainable energy and environmental science may be forced to pause or shut down completely.
Federal grants also support graduate students through stipends. Many Ph.D. candidates work on federally funded research projects as part of their academic and professional training. If funding is halted, students will face interruptions in their studies and financial hardships.
“The potential impacts are significant and concerning for a campus of our size and scope, particularly given the depth of our commitment to research,” the statement said. “Despite the current uncertainty, we believe it is appropriate for federally-funded research activities at UW–Madison to continue and students and employees supported by federal funding should continue their normal activities.”
A federal judge temporarily blocked President Donald Trump from imposing the freeze Tuesday afternoon, delaying the new restrictions from taking effect until Feb. 3.
