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FEDERAL FUNDING UNCERTAINTY LOOMS OVER YAVAPAI COMMUNITY COLLEGE WITH POTENTIAL UNINTENDED CONSEQUENCES BECAUSE OF TRUMP/MUSK DOGE INVOLVEMENT

By R. Oliphant
Thursday, February 20th, 2025

Will existing contracts and grants with the Federal Government be cut? Or eliminated?  Will DOGE cause Hispanic student enrollment to plumet?  Will student loan and the Pell grant programs be reduced or eliminated?

COMMENTARY:  The actions by the Trump administration’s newly created Department of Government Efficiency (DOGE) may have a significant impact on the operations of Yavapai Community College. There is concern because DOGE is already taking away millions of dollars in existing  grants and contracts from various educational institutions. In addition to this concern, the Trump administration has mandated that educational institutions eliminate anything that directly or indirectly might be linked to what are commonly called “Diversity, Equity and Inclusion (DEI)” programs or projects.

Are Yavapai Community College’s  $12 million in federal contracts and grants in jeopardy?

Yavapai Community College’s $126 million annual budget includes $12.3 million in federal grants and contracts for the current academic year. About $7.25 million has already been spent by January 2025. Will these funds be affected? The answer is unclear. 

To date, the administration with the assistance of DOGE unexpectedly cut approximately $1 billion from the U.S. Department of Education’s research office. The impact of those cuts has been immediate in some areas of the country. For example, at St. Thomas University in St. Paul, Minnesota, DOGE canceled a previously approved grant program that was supporting 185 students pursuing careers in special education. The $6.8 million grant to St. Thomas was deemed a DEI initiative and subsequently eliminated as part of the administration’s broader crackdown on DEI-related programs. Students in the affected program had been receiving between $10,000 and $20,000 per year in scholarship aid to help cover tuition costs.

St. Thomas is appealing the decision, noting that a DEI statement was required when applying for the grant funds, even though the training, or at least most of it, did  not necessarily involve DEI.

It remains unclear whether any teacher education programs or other initiatives at Yavapai College might be considered DEI projects and, therefore, subject to similar funding cuts. Major  cuts in federal funds could have  devastating consequences.

Yavapai must also worry about any aspect of its operation that involves race, even tangentially. In a letter sent  Friday, February 14 the New York Times reported that the Federal Education Department warned that colleges risk losing federal funding if they continue to take race into account when making scholarship or hiring decisions, or considered  race in “all other aspects of student, academic and campus life.”

On Monday, February 17  the Education Department said it had canceled $600 million in grants focused on training teachers in “inappropriate and unnecessary topics” such as critical race theory, social justice activism, antiracism and “instruction on white privilege.”

Additionally, the future of federal support for Yavapai Community College is even more uncertain if the Department of Education is eliminated as promised by DOGE.

Concerns Over a Possible Decline in Hispanic Student Enrollment;  23% of Yavapai’s Student Body Hispanic

Another concern among educators is a potential drop in enrollment among Hispanic students created by DOGE.  Yavapai Community College reports that 23% of its student body is made up of Hispanic students.

The possible large drop in enrollment is linked to DOGE gaining access to millions of student records and concern over how this information is used. For instance, there are questions about whether student grant application information, which is completed by almost all students,  could be shared by  DOGE with immigration authorities. It is feared that the information, if shared, could be used to assist immigration authorities in locating a student’s grandparents or other relatives who may be undocumented but have been living  in the country for decades.

As rumors and uncertainty apparently spreads through Hispanic communities, it is already being reported that families are not  sending their children to school. For example, in Memphis, Tennessee,  one person described the climate as one of fear and hesitation in the Hispanic community, stating, “Everybody is terrified. They’re scared to come out.”

The same level of fear was reported in Minneapolis, Minnesota.

That fear has apparently intensified following newspaper reports this past week that DOGE gained access to a federal database containing personal details on millions of students and parents participating in the federal student loan program.

It is unclear whether the rumors and stories regarding  how DOGE might use community college federal student grant and loan applications have reached or will affect  the Hispanic college-eligible community in Yavapai County.  As noted earlier, Hispanic students currently make up about 23% of Yavapai’s student body.

Will DOGE’s policies lead to a significant decline in Hispanic enrollment next fall? While the answer remains uncertain, the concern is real. The consequences could be significant.

The Future of Pell Grants and Federal Student Loans

Another related concern pertains to the federal student loan and grant program. Notably, approximately 20% of Yavapai Community College students depend on Pell Grants, a vital source of financial aid for low-income undergraduate students. Unlike federal student loans, Pell Grants do not require repayment, except under specific circumstances.

There’s concern that DOGE might reclassify the student grant/loan programs as DEI initiatives or change funding and eligibility, limiting student access. Reducing or eliminating these financial support programs would significantly impact Yavapai Community College, which heavily relies on them.

Worst-case scenario.

For now, uncertainty reigns in Washington, D.C. and at educational institutions throughout the nation. With chaos unfolding at the federal level and threats to close the Department of Education, Yavapai Community College—like many institutions—finds itself in a precarious position, waiting to see what will happen and whether it can weather the storm that may be coming.

If Hispanic student enrollment declines sharply and federal contracts and grants are reduced, Yavapai Community College could face a severe financial crisis. To remain viable, the college may need to implement substantial tuition increases, raise Yavapai County’s primary tax rate—an action requiring only three votes from its five-member governing board—and cut costs by increasing class sizes while reducing faculty and staff positions. In a more drastic measure, the college might even revisit the idea of selling the Sedona Center, a possibility it explored around 2014–15.

Ideally, these concerns will subside, the rumors and speculation will prove unfounded, and conditions will stabilize—an outcome that serves everyone’s best interests.

Categories : Politics, Tuition

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