US funding freeze affecting both American and international exchange students and major US scholarship funders

The Trump administration’s funding freeze affecting several prominent international education grant programmes in the US continues. Over 10,000 students and professionals participating in international exchanges – some American, some from other countries – have had their funding withdrawn. They have been given no indication of when – or if – funding of their programmes will be reinstated.

The US government paused funding of all programmes under the State Department’s Bureau of Educational and Cultural Affairs (ECA) on 13 February 2025 for 15 days. Instead of ending the pause as expected on 27 February, it kept the freeze in place. Affected programmes include:

• The Fulbright Scholarships
• The Gilman Scholarships
• The IDEAS Program
• The Critical Language Scholarship Program

Of the students currently affected, more than 3,500 are abroad. Another 7,400 are international students in the US. Funding has also been paused for students planning to go on exchanges in the next six months.

Many students have been left wondering how they will pay their rent, and some are resorting to food banks for meals.

In addition, the ECA funding normally pays for the international education professionals employed by the scholarship and exchange programmes. Those staff are understandably worried about losing their jobs.

Major international education association band together in protest

This week, international education peak bodies announced a joint campaign aimed at persuading Congress to intervene to stop the funding freeze.

In a statement, NAFSA executive director and CEO Dr. Fanta Aw pointed out that the affected programmes have been authorised and appropriated funds by the US Congress, and articulated what is at stake with the funding pause:

“The freeze on State Department grant programs threatens the survival of study abroad and international exchange programs that are essential to U.S. economic and national security. Halting inbound and outbound exchanges shuts the United States off from a vital flow of ideas, innovation, and global understanding and influence, creating a vacuum that could easily be filled by competing nations. We urge Congress to use its authority to intervene. Restoring this funding immediately is absolutely in the country’s national interest.”

Mark Overmann, executive director of the Alliance for International Exchange, emphasised that the funding freeze is not only hurting international students, but also Americans in exchange programmes:

“Paralyzing ECA-funded exchange programs endangers the health, safety, and future of the more than 12,500 Americans who are either abroad right now or soon will be and damages our relationships with current and future leaders from around the world. The many U.S. organizations that support these programs and its participants are now in a dire financial position, putting thousands of American jobs and livelihoods at risk. Approximately 90 percent of the State Department exchanges budget is spent on Americans or in America. ECA exchange programs absolutely fulfill Secretary of State Marco Rubio’s goal of making ‘America safer, stronger, and more prosperous.’ Suspending them would only have the opposite effect.”

Melissa Torres, president and CEO of the Forum on Education Abroad, said:

“Study abroad programs like the Gilman and Fulbright Scholarships provide opportunities for students who might not otherwise have a global education. The Critical Language Scholarship and IDEAS programs build the language skills of U.S. students and broaden their access to destinations where American engagement is particularly important. These experiences help prepare students for a globally connected workforce. Without federal support, the cultural competency of our domestic population and in turn, U.S. global competitiveness, will take a huge step backward.”

Dire effects on students and staff

Karin Fisher, in a 5 March Latitudes column for the Chronicle of Higher Education, detailed the mood at this week’s Association of International Education Administrators conference in Houston, Texas. Dominant themes were fear and stress. Ms Fisher reports that, “One administrator said his campus was scrambling to find money to pay a Fulbright scholar who was the campus’s sole Chinese-language instructor.”

Another attendee, John Sunnygard, associate provost for global learning and international affairs at Western Kentucky University, expressed his concern for his students who had been awarded Gilman scholarships. The Gilman scholarships are merit-based scholarships that allow students with demonstrated financial need to study or intern abroad. As per Ms Fisher’s reporting, Mr Sunnygard said that many of his Gilman recipients “had already purchased nonrefundable plane tickets and paid program deposits for summertime international study.”

Mr Sunnygard said: “They were promised a scholarship and made a financial commitment. These are kids from rural areas who have never been on a plane. We bought their passports.”

The Chronicle of Higher Education was made privy to a message in which international students were told to leave the US because their funding was “subject to an immediate stop.”

At the conference, Ms Fisher listened to an international graduate student explain that she had received “only a quarter of her regular monthly funding stipend … leaving her unable to pay her rent [and] relying on a food bank.” That student said: “I’ve got zero idea how to pay for my apartment. I’ve got zero idea about what to do with my belongings if I get evicted.”

Outside of the conference, as reported in the Financial Express, Fulbright student Nigora Jabarova posted on LinkedIn that her funding organisation, the Institute of International Education (IIE) had received no warning of the funding freeze. Cut off from funding, she posted:

“With just three months left until my graduation, I now find myself in an extremely difficult position, both professionally and personally. As Fulbright participants, we are not permitted to work outside the program, and the stipend we rely on has been abruptly halted. This has left many of us struggling to cover basic necessities such as rent and food.”

Potential brand damage in major student sending markets

Every year, over 2,000 Indian students receive grants from the Fulbright programme. Vietnam’s VNExpress warns that “Any reduction or delay in funding could limit participation, affecting cultural exchange and academic collaboration between India and the U.S.”

Just last year, former President Biden had made it a priority to forge deeper ties with India through international education.