Working Families Look to McMahon for Indications on Whether She Will Follow Unconstitutional Orders That Harm Working Families
January 28, 2025 | WASHINGTON, D.C. — Last night, in an unprecedented and illegal abuse of executive power, the Office of Management and Budget sent a two-page memo ordering all federal agencies to freeze domestic grant and loan aid by 5:00 PM ET on Tuesday, January 28. The move has sent shockwaves across the nation and has created confusion for millions of working families that rely on federal assistance to pay for college, keeping food on the table, and covering other critical costs like childcare and housing. In the hours following the release of the memo, the Trump Administration has attempted to walk back the scope and impact of the funding freeze—claiming that it does not apply to Pell Grant and federal student loan assistance. Regardless of these updates, it is clear that policymakers must secure firm commitments from Trump Administration nominees that they will reject these attacks on working families.
In response, Student Borrower Protection Center (SBPC) Policy Director Aissa Canchola Banez issued the following statement:
“Let us be clear, the Trump Administration’s unprecedented and illegal action to halt federal grant and loan aid will destabilize working families across our nation from suburban, rural, and urban communities alike. From cutting off aid meant to help students and working families pay for college to halting assistance intended to help families keep food on the table and a roof over their heads—it is critical that we call this out for what it is—a blatant, callous, and unconstitutional power grab.
“We can no longer allow this Administration to govern by shock and awe. Policymakers in Congress must stand up for the families and communities that sent them to Washington, demand answers, and hold Administration officials accountable for abusing power and wreaking havoc on our nation. In the coming days, Linda McMahon is expected to appear before the Senate HELP Committee. She must be questioned on her plans to implement this order and whether she will be complicit in these attacks on working families.”
Further Reading
SBPC blog listing out 20 questions for HELP to ask Linda McMahon in her nomination hearing: 20 Questions for Linda McMahon After the Trump White House Blocks All Federal Agency Grants and Loans
SBPC blog outlining concerns with critical Trump cabinet nominees: Critical Trump Administration Nominees Should Raise Major Red Flags for Working Families with Student Debt
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About Student Borrower Protection Center
Student Borrower Protection Center (SBPC) is a nonprofit organization focused on eliminating the burden of student debt for millions of Americans. We engage in advocacy, policymaking, and litigation strategy to rein in industry abuses, protect borrowers’ rights, and advance racial and economic justice.
Learn more at protectborrowers.org or follow SBPC on Twitter @theSBPC.