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US State Department lifts federal funding freeze

US study abroad leaders have welcomed the resumption of federal funds as “incredibly encouraging progress”, with Alliance for International Exchange members having received over 85% of outstanding payments withheld for nearly two months, according to Alliance executive director Mark Overmann.  

“A new payment process within the State Department seems to be coalescing and through that process, a rhythm of payments is slowly but surely developing,” Overmann told The PIE News on March 27.  

Despite no official government announcement, “payments began trickling through to implementing organisations over the past 10-12 days, and really picked up steam this week,” said Overmann, with organisations seeing a notable surge in the past 48 hours.  

The Forum on Education Abroad, the Fulbright Association and the Institute of International Education (IIE), are among the 76 members represented by the Alliance that saw government funding withheld in what was originally intended to be a 15-day pause initiated on February 13.  

The paralysed funds effectively suspended international education and exchange programs, with stakeholders warning that more than 12,500 Americans would immediately or soon be impacted.  

We have to remain vigilant and fight for exchanges each and every day

Mark Overmann, Alliance for International Exchange

The gradual restoration of funds has been met with widespread joy and relief from US colleagues, praising the advocacy campaign led by NAFSA, the Alliance and the Forum on Education Abroad, which generated more than 24,000 letters sent to over 500 congressional offices.  

“This is an important step in protecting exchange programs and our field,” said Overmann, thanking the exchange community’s “incredible and unparalleled response”. 

In a webinar earlier this week, NAFSA CEO Fanta Aw told US educators: “The way we remain in power is to stay informed, to do our part. And then, when we ask you to advocate, take that time and do so, because it really does matter.”  

While the thawing of the freeze marks a significant milestone in the survival of US exchange programs, considerable damage and disruption has already been inflicted on the sector, with IIE furloughing all but two employees from its flagship EducationUSA study abroad network.  

What’s more, Overmann warned that it would take some time for organisations to restabilise after the near-two-month pause and to trust that future funding remains secure.  

“Many programs are due for rebids and renewals – it’s vital that these happen as soon as possible, for the long-term health and stability of the programs,” added Overmann.  

Amid unprecedented policy upheaval across international higher education since Donald Trump’s return to the White House, colleagues have been reminded to remain vigilant, with institutions preparing for an imminent travel ban widely expected from the administration.  

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