Market intelligence for international student recruitment from ICEF
27th Aug 2025

US Office of Management and Budget grants budget reprieve to key exchange programmes

Short on time? Here are the highlights:
  • The US administration is moving ahead with plans to withhold funding for more than 20 international exchange programmes
  • In a partial reprieve, however, 28 exchange programmes, including the EducationUSA advising service and the very high-profile Fulbright scholarships, have been released and are now expected to move ahead with their planned funding for this year

In a highly unusual intervention in an area of Congressional authority, the US Office of Management and Budget (OMB) announced in early August that it was planning to cut fiscal year 2025 funding for dozens of international exchange programmes administered by the Bureau of Educational and Cultural Affairs (ECA). The planned cuts indicated at the time amount to roughly US$100 million, and would affect thousands of exchange participants.

The move followed a funding freeze earlier this year that paused funding to many of those same programmes.

"Without these funds, ECA faces an existential crisis, threatening all current and future exchange programmes," said Alliance for International Exchange Executive Director Mark Overmann. "This action risks establishing a precedent that undermines Congressional authority, paving the way for OMB to effectively eliminate international exchange programmes."

The Alliance reported late last week that its advocacy campaign had resulted in 13,000+ messages to 503 Senators and Representatives in all 50 states, and that Congress had responded to protect exchange programmes but also to reinforce the role of Congress in appropriating funds to the Department of State for such programmes.

More than 20 programmes are still subject to OMB funding cuts, the restoration of which the Alliance characterises as an "uphill battle."

However, another 28 programmes for which funding had also been held by the OMB have now been released. In the mechanics of government, this means that the programmes have been released to Congress, where, after a 15-day review period, it is expected their funding will be confirmed for the 2025 fiscal year and that ECA will be able to carry on to administer those funds – and in particular the awards to programme participants.

The 28 programmes that are now expected to have that funding restored included the ECA's flagship Fulbright Program. Fulbright, says the ECA, "provides awards to approximately 8,000 students, scholars, teachers, artists, and professionals each year from the United States and over 160 countries."

Other programmes that have been released from the OMB hold include the EducationUSA advisory programme and the Benjamin A. Gilman International Scholarship Program, which provides funding for students of limited financial means to study abroad.

For additional background, please see:

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