The presidents of New Jersey’s institutions of higher learning delivered a somber outlook on Monday regarding the potential consequences of President Donald Trump’s plan to drastically cut federal funding for education. They warned about how these reductions might impact the state’s university students.
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Public universities and community colleges in New Jersey were awarded over $725 million in federal financial assistance, which supported almost 144,000 students across the state in the previous year.
In 2022-23, approximately 10,000 students were awarded federal work-study grants, whereas 38,295 students obtained Supplemental Educational Opportunity Grants, as per information provided by the National Association of Independent Colleges and Universities.
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On Monday, a combined hearing held in Trenton for both the New Jersey State Senate and Assembly Higher Education Committees marked the initial public forum orchestrated by legislators to explore the possible effects of the Trump administration’s initiatives aimed at reducing or potentially eliminating federal support for higher education.
remove the federal Department of Education
aim for deeper reductions in higher education spending.
On Monday, representatives from Rutgers University, Montclair State University, and Brookdale College in Monmouth County shared their insights. These institutions showcase examples of large, medium-sized, and small educational facilities.
“Streamlining operations and getting ready to transfer full authority to state governments,” is a top priority for the Trump administration, according to newly appointed Education Secretary Linda McMahon who spoke with the conservative news platform NewsNation. This shift includes changes like those affecting Pell Grants and
federal loans
Currently managed by the Education Department will probably be redirected to the Treasury.
This, combined with the efforts by Republican members of Congress to create a federal budget featuring approximately $330 billion in reductions to higher education and workforce development initiatives, might jeopardize the existence of long-standing assistance programs.
Cutting Pell Grants for students from low-income families?
Another option could be reducing Pell Grants for the least affluent students. Given their value of around $5,000 per student, such cuts would primarily affect minority populations and those who are first in their family to attend college at the undergraduate level.
Almost 143,553 middle- and low-income students in New Jersey might miss out on as much as $725 million in financial assistance via Pell Grants — averaging about $5,000 per student. These grants are crucial for enabling first-generation students to attend college.
Decreasing Pell grants could affect state assistance for these students since this would influence “last-dollar” initiatives such as the Garden State Guarantee. These programs offer additional support funds to qualifying families once all other grants and scholarships have been accounted for.
Universities are experiencing additional immediate effects as well. Apart from cuts to Pell Grant funding, almost every institution within the organization has witnessed cancellations or reductions in various types of grants. This comes according to Jennifer Keyes-Maloney from the Association of State Colleges and Universities. Her association comprises institutions such as William Paterson University, The College of New Jersey, Kean University, and Ramapo College, along with several others.
“Some grants have been entirely terminated,” stated Francine Pfeiffer, who serves as a vice president for government relations at Rutgers University. The institution has had to examine its grants to ensure they align with the executive orders and made necessary modifications accordingly, according to Pfeiffer. She was alluding to the actions taken under the Trump administration to remove terminology or policies potentially associated with diversity programs.
Rutgers lacks the resources to offset the loss of federal funds, even with additional support from donors, she stated.
State Senator Andrew Swicker, from Hillsborough and a Democrat, questioned whether “just the term ‘diversity’ itself” is what’s leading to grants being revoked.
The grants we’ve had to alter focus now exclude terms related to diversity, Pfeiffer stated. However, this also affects areas such as ‘gender’ and ‘reproductive health.’
Up to 17,000 Rutgers students might face impacts from the potential effects on the cancer institute.
Over 17,000 students at Rutgers might be affected if their federal financial assistance is withdrawn, she mentioned.
The Rutgers Cancer Institute of New Jersey, with around 120,000 patient visits each year, faces potential challenges if federal grants are cut back or eliminated, according to her statement. She explained, “Given how research funding operates—whereby institutions cover costs upfront and get compensated later—if there’s no assurance of being repaid, all such activities would have to be halted.”
Programs at risk due to their reliance on federal support include the federal TRIO initiative and the SAVE (Saving on a Valuable Education) plan, which assisted with student loan repayments, according to Keyes-Maloney, who represents smaller public institutions.
She mentioned that these institutions are considering staff reductions along with potential economic repercussions in both the municipalities and regions where they function, as well as within the areas where their alumni commonly secure jobs. Typically, the influence of an institution locally extends about 60 miles out from the college, according to her statement.
Murphy’s budget suggests substantial reductions in funding for higher education.
This situation is causing unease among state colleges and universities as they prepare budgets for the 2025-26 fiscal year. They are attempting to navigate potential funding reductions from the Murphy administration’s suggested state budget for higher education, while also adjusting to significant shifts in federal educational policy being implemented under the Trump administration.
The uncertainties stemming from decisions made in Washington, along with the probable adverse effects on higher education and various institutions, have been intensified due to the cuts suggested in the governor’s proposed budget, according to David Rousseau, who previously served as state treasurer and currently represents the Independent Colleges and Universities of New Jersey, an alliance of educational entities.
The state’s 13 private universities
including Princeton University and Fairleigh Dickinson.
The budget proposed by Governor Murphy’s administration for the 2025-26 period suggests one of the most significant reductions in state funding for higher education since he assumed office almost eight years back, totaling approximately $184 million, which represents a 5.5% decrease compared to the financial year 2025.
This, combined with over a 65% decrease in operational funding for private universities in Murphy’s budget, along with a 7.1% cut for numerous public institutions and an 11.8% reduction in support for community colleges, might ultimately lead to students and their families having to cover more costs associated with attending college.
Rousseau stated, “A lot of people are already facing challenges due to rising expenses and unchanging registration numbers.”
Community colleges rely on financial support from the federal government.
“We acknowledge that we are living through an era of transformation in higher education,” stated a spokesperson from the New Jersey Council of County Colleges. However, considering the presence of 49,000 Pell grant recipients across the state’s 18 community colleges—totaling over $1 million in federal assistance—the reduction of funds under the Trump administration has the potential to cause some institutions to shut down completely, according to their statement.
The actions taken by the Trump administration occur as discussions about the cost of attending college and the worth of obtaining a degree are reshaping national conversations regarding higher education. In New Jersey, multiple private and public universities confronting fiscal difficulties have combined with larger educational entities.
For example, New Jersey City University has recently declared its merger with Kean University located in Union County. Additionally, in 2023, the struggling
Bloomfield College merged
with Montclair State University.
If all funding were to be eliminated, could community colleges endure, questioned one senator.
Our institutions function with extremely tight budgets as it stands,” stated a spokesperson from Brookdale Community College. “A significant number of community colleges might be forced to close down entirely. Numerous initiatives we currently offer were made possible solely due to federal funding.
(The narrative has been revised to precisely mirror the latest details.)
The article initially appeared on NorthJersey.com.
Trump’s budget cuts might endanger New Jersey’s community colleges and adversely affect Pell Grant recipients, according to officials.
