Recent federal proposals for reconciliation and Trump Administration executive orders could decimate higher education spending and basic needs programs, making it harder for people to access and complete a college credential. These actions compound long-standing challenges in our higher education system for serving students who face greater barriers such as adult students, parenting students, and students with low incomes.
These cuts would relegate millions of people to low-wage, low-mobility jobs, and imperil economic growth at a time when demand for workers with a postsecondary education is predicted to grow. Currently, almost 37 million people have attempted college but have not completed a credential or degree, and basic needs insecurity, which affects an estimated 60 percent of students, threatens their ability to complete.
Each level of education achieved is correlated with higher wages and lower unemployment, as well as myriad social and health benefits. As education levels increase, participation in public programs declines, which is a longstanding goal for conservative policymakers.
Federal Action Overview
We reviewed the Trump Administration’s actions and Congressional proposals to date to assess their impact on basic needs programs and risks posed to postsecondary access and completion, including the:
- Executive Order Expanding Educational Freedom & Opportunity for Families (EO) instructing federal agencies to submit plans to repurpose funds to “expand educational choice and support families who choose educational alternatives to governmental entities, including private and faith-based options.” Among other programs, the EO targets discretionary grants administered by the Department of Education and block grants administered by the Department of Health and Human Services, including but not limited to the Child Care and Development Block Grant (CCDBG).
- Office of Management and Budget (OMB) funding freeze memo instructing federal agencies to pause federal grants and loans that initially encompassed around $3 trillion in federal assistance programs. OMB later rescinded the memo, but the White House confirmed the freeze would continue to move forward. Legal action on the freeze of federal funds is making its way through the courts, and a judicial block on the funding freeze was recently extended, citing that the Trump Administration failed to follow federal law. Additional attempts to cut discretionary federal spending by DOGE and OMB are well underway.
TICAS recently wrote about broader threats to higher education, including harm from cuts to data collection contracts. Together, these efforts will have a devastating effect on students and Americans with lower incomes who are not currently pursuing a college credential. Below we detail each of the program areas we anticipate could be affected by some or all the actions above.
Food Assistance
Nutrition programs are vital to stabilizing households and supporting people’s ability to work and enroll in classes. Cuts to these programs would affect food benefits, employment and training supports, resources for food pantries, and nutrition supports for pregnant and parenting women.
Child Care
Access to child care is a core economic and family stabilizer, improving the wellbeing of households across virtually every facet of their lives. One in five (nearly 4 million) college students are parents striving to earn a degree or certificate to improve their financial security. Similarly, child care access could improve the ability of the 52 percent of families living in poverty with a high school diploma and no credential to enroll, improving their ability to achieve economic mobility.
- Child Care Access Means Parents In Schools (CCAMPIS) is a competitive grant awarded to institutions to support parenting students with low incomes. According to a 2019 GAO report, CCAMPIS helped about 3,300 students pay for childcare, and more than 4,000 children were on waiting lists. (EO, RF, OMB)
Income Support
The Temporary Assistance to Needy Families (TANF) program is the only program that provides cash assistance to families with dependents that meet certain very low-income requirements. States have significant flexibility to design their programs, and some include postsecondary pathways to help families reach financial independence. (EO, RF, OMB)
Health Care
Medicaid is a major source of funding for hospitals, health centers, doctors, and nursing homes and provided health care support for around 82 million people with low incomes in 2022. Research shows that students’ access to affordable insurance increased after the passage of the Affordable Care Act (ACA), especially in Medicaid expansion states. Cuts to Medicaid would harm access to health services and education, including the outsized proportion of students experiencing anxiety and depression and the 64 percent of students who have considered stopping out due to mental health concerns. (RF, OMB)
Institutional Supports
There are several programs that provide resources for institutions to improve their ability to better meet the needs of students who are experiencing non-academic barriers. These programs improve access to wraparound services and are critical to student success:
- The Federal TRIO programs focus on outreach and student support services for on average around 800,000 first-generation students and students with low incomes per year. (EO, RF, OMB)
Housing Assistance
Federal housing assistance programs provide rental assistance for people experiencing housing issues as well as resources for state and local governments and homeowners. Housing insecurity is also a major issue among college students. In the fall of 2023, 42 percent of students reported experiencing housing insecurity and 14 percent experienced homelessness, with much higher rates reported by parenting students. (RF, OMB)
Conclusion
Cutting education and basic needs programs will undermine the growing demand from employers for a more educated workforce. It will relegate more people to jobs with poverty-sustaining wages and stymy our economy. Protecting and investing in higher education and basic needs supports better reflects evidence that completing a credential or degree produces better economic outcomes, results in less use of public programs, and strengthens our economy.
