Just six months into his presidency, President Donald Trump is significantly reshaping federal education policy, and leaders in Utah’s education system are grappling with the repercussions of these changes.
During the Utah Board of Higher Education’s meeting in July, officials dissected the implications for both schools and students throughout the state.
One of the most pressing issues highlighted was the cancellation of 77 research grants at the University of Utah, resulting in a staggering loss of $28.4 million in current and future funding, as reported by Erin Rothwell, Vice President of Research.
A particularly concerning proposal from the Trump administration is a potential cap on federal grants for the ‘indirect costs’ of research.
These indirect costs, often referred to as the ‘facilities and administrative rate,’ cover essential expenses such as utilities and research lab maintenance.
Currently, the University of Utah negotiates an indirect cost rate of 54% for on-campus research, meaning the university receives an additional $0.54 for every federal grant dollar allocated for research.
However, the federal administration is considering a cap on this rate at just 15%, a move Rothwell indicated could lead to an annual loss of $110 million in funding.
While courts have temporarily blocked policies enforcing this cap, the future enforcement remains uncertain.
“If the proposal were to become law, we would be unable to conduct research as we currently do and would significantly reduce our research output,” Rothwell cautioned during the board meeting on July 18.
She is currently collaborating with the Joint Association Group, a coalition of national organizations representing various academic, medical, and research institutions, to formulate a more agreeable research funding model that would mitigate these losses.
In addition to research funding cuts, significant changes to federal student loan programs are on the horizon, particularly affecting graduate students.
Starting in July 2026, the Grad Plus Program will be eliminated, which previously allowed students to borrow up to the full cost of attendance.
Under new measures identified as the ‘One Big Beautiful Bill,’ graduate students will face annual borrowing limits of $20,500, with an aggregate limit of $100,000.
For professional graduate degree programs, such as medical or law schools, the annual borrowing cap will be $50,000, leading to an overall limit of $200,000, and a lifetime cap of $257,000 on all federal student loans.
This change particularly worries Utah State University Interim President Alan Smith, especially regarding non-resident students enrolled in their veterinary medicine program.
With veterinary school tuition averaging $52,000 annually over a four-year program and limited nationwide availability of such programs, students may increasingly resort to private loans with higher interest rates.
At the University of Utah, chief of staff Troy D’Ambrosio expressed anticipation of widespread impacts across all graduate programs and acknowledged a significant hit to the institution.
However, the full extent of the repercussions has yet to be evaluated.
Nationwide, opinions vary on how funding cuts will shape the future of higher education; some experts suggest schools might reduce tuition, while others express concern that many students may need to pursue private loans or abandon their educational goals altogether.
In response to these changes, Utah’s Commissioner of Higher Education, Geoffrey Landward, anticipates states will need to address the resulting financing gaps by creating their own financial aid and loan programs.
“It’s just another policy issue we will likely need to tackle,” he noted during the board meeting.
Additionally, Landward pointed out that while not directly tied to higher education, forthcoming cuts to SNAP and Medicaid will create new administrative costs and expectations that could divert state funding away from higher education starting in 2028.
These budget constraints could further limit the available resources for educational institutions in Utah.
The ongoing push from the Trump administration and Congress aligns with their intent to better connect higher education to workforce outcomes.
A newly introduced tax and spending bill expands Pell Grants to include short-term job training programs beginning in the 2026-2027 academic year.
Utah’s higher education leaders estimate that 30 technical education programs, including firefighting and emergency medical technician courses, will gain eligibility for these grants.
Katie Mazzie, associate commissioner of strategic initiatives, community and government relations for the Utah System of Higher Education, acknowledged the potential benefits but noted that the process for program approval remains somewhat unclear.
New accountability measures, such as an ‘earnings test,’ will also require undergraduate programs to demonstrate that their graduates earn more than the state’s median high school graduate salary.
Failure to meet this criterion in two out of three years could result in the loss of federal funding for underperforming programs.
Looking ahead, Landward highlighted discussions with Education Secretary Linda McMahon, indicating a clear intent from the Trump administration to dismantle the Department of Education.
In light of these rapid changes, he is collaborating with other states to draft proposals aimed at preserving and taking over programs currently administered at the federal level.
Given the swift pace of policy shifts, the Utah Board of Higher Education has requested another federal policy update in their next meeting.
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