STARKVILLE – A federal judge has blocked a Trump administration temporary pause on federal grants and loans that could cost Mississippi State University hundreds of millions in research and development funding.
Federal agencies were ordered to “temporarily pause all activities related to obligation or disbursement of all federal financial assistance” in a Monday memo from the Office of Management and Budget.
The pause, which was planned to take effect Tuesday, is intended to allow agencies time to conduct a “comprehensive analysis” to ensure all grant and loan programs align with President Donald Trump’s executive orders, which aim to ban diversity, equity and inclusion initiatives, reevaluate foreign aid and review environmental funding.
The court stopped the restrictions from taking effect until at least Feb. 3.
In 2023, the most recent year available, Mississippi State spent $319 million on research and development expenditures, according to the National Center for Science and Engineering Statistics. Of that total, about 47% – roughly $150 million – was covered by federal dollars. Federal funding of research and development at MSU has steadily increased in recent years. In 2020, federal grants were $120 million, according to the NSF report.
The National Science Foundation ranks MSU among the top 100 research universities in the country. Without federal grants and loans, the university stands to lose significant financial support for projects in agriculture, engineering and other fields.
As examples of potentially affected initiatives, the university houses the nation’s only federally-funded center researching employment outcomes for the blind. A $2 million, five-year NSF grant awarded to MSU in October 2024 aims to address gaps in STEM education for rural, low-income students.
MSU leads the Northern Gulf Institute which is funded by awards from the National Oceanic and Atmospheric Administration to research ecosystems, climate change and coastal hazards, among other things. It is also the lead university for the Federal Aviation Administration’s National Center for Excellence for Unmanned Aircraft Systems, which is a coalition of research universities as well as government and industry partners.
MSU Vice President for Strategic Communications and Director of Public Affairs Sid Salter would not comment on the “pause” Tuesday and instead deferred to a statement from John Sewell, director of communications for the Mississippi Board of Trustees of Institutions of Higher Learning.
“We are aware of the temporary pause on federal financial assistance programs and its potential impact on the state’s public universities,” Sewell said. “We will continue to monitor this directive and the pending review of programs by the Office of Management and Budget.”
Mississippi University for Women did not receive federal research and development grants in 2023, according to the NSF report. The university did receive a $1 million NSF grant in October 2024 to research gecko toe pads and how they work.
The initial memo caused widespread confusion about whether funding would be provided for federal programs like Pell grants, Head Start, Medicare and Medicaid.
The White House released a fact sheet Tuesday afternoon clarifying the pause would not apply to those programs. Nor would it apply to those that provide direct benefits to Americans, including Social Security, funds for small businesses and farmers and rental assistance.
Adding to the confusion, the Associated Press on Tuesday afternoon reported Medicaid and Head Start personnel were unable to access their payment websites.
“This is not a blanket pause on federal assistance and grant programs from the Trump administration,” Press Secretary Karoline Leavitt said in a Tuesday briefing. “Assistance that is going directly to individuals will not be impacted by this pause.”
McRae is a general assignment and education reporter for The Dispatch.
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