Cape, SEMO officials discuss potential impacts of federal aid freeze

The Trump administration on Wednesday, Jan. 29, rescinded a memo that froze federal aid and grants, which had been originally issued just days before.

According to The Associated Press, the memo, issued Monday, Jan. 27, caused concern among states, schools and other organizations that rely on federal monies. Trump rescinded the order Wednesday after a federal judge postponed it minutes before it was set to take effect Tuesday, Jan. 28.

Despite the memo being rescinded, Cape Girardeau city and Southeast Missouri State University officials described to the Southeast Missourian how a freeze on federal aid could have affected their programs and projects.

Cape Girardeau city government

City manager Ken Haskin said in a text message to the Southeast Missourian the expenditures for federal awards to the city totaled $11.8 million during the fiscal year (FY) ending June 30, 2024. He said those federal awards had benefited departments across the city, including public safety, transportation, parks, water and sewer, and Cape Girardeau Regional Airport.

"If the freezing, or pause, of these federally funded awards had not been rescinded, it would have certainly impacted the City, future projects, and the projects currently in progress," Haksin wrote. "The extent of that, however, is an unknown as there was much uncertainty regarding how the freeze was to be implemented."

He noted in the message that the city would be assessing the impact on their services if they were not to receive those federal program awards.

SEMO students

The administration's freeze on federal grants and loans would not have affected Southeast Missouri State University students, as Title IV aid — which includes federal student loans, scholarships and the Pell Grant —  was not included in the order.

Student Financial Services director Matthew Kearney said there was “a lot of uncertainty” Tuesday morning after the order was announced late Monday night, Jan. 27.

At approximately 3 p.m. Tuesday, Kearney received communication from the United States Department of Education clarifying what the freeze would affect, and that Title IV financial aid was not included.

“For a while, we had to tell students, ‘We're aware of the situation but we don't really have an answer right now, so it's kind of on hold,’” Kearney said. “But at the time, we were planning to continue as we had been until we heard differently.

“I think there was definitely some concern, and I think some frustration because we never like to tell students that we don't know and that we're just having to wait. That's frustrating for us because we know that's frustrating for the students as well, so that's kind of what the mood was like (in the office) yesterday. But then, by 3 p.m., it was kind of a relief.”

Following the clarification, the university immediately notified students that they wouldn’t be impacted. While Title IV aid would not be affected by the freeze if it’s reinstated, there’s a chance some discretionary grants could be affected as the Trump administration cracks down on diversity, equity and inclusion policies.

While Kearney said he doesn’t believe there will be “overarching changes for students”, he mentioned that some programs, such as Federal Work-Study, Federal Supplemental Educational Opportunity Grants (FSEOG) and Federal TRIO Programs (TRIO), could be scrutinized as federal agencies conduct their reviews.

“While those do impact students, it's a smaller population of students,” Kearney said. “But, unfortunately, those are our highest-need populations a lot of times. That's a frustrating thing to have to try and work through. I certainly can't speak for what the plan is for TRIO, or anything like that, or what their plans are if something were to change.”

The administrative stay on the freeze lasts until the afternoon of Monday, Feb. 3. A hearing is scheduled for that morning.