Recent policy changes and proposed measures by the new U.S. administration have signalled significant shifts in higher education and research funding. President Trump's executive order, announced on 30 January 2025, titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," directs federal agencies to enforce civil rights laws by eliminating policies that grant preferences based on race or sex. This order extends to higher education institutions receiving federal funding, requiring compliance with these directives or risking financial support cuts. Additionally, the Department of Education and the Department of Justice are tasked with guiding universities on implementing the Supreme Court’s 2023 ruling that banned race-based admissions considerations. 

The U.S. administration has also intensified scrutiny of diversity, equity, and inclusion (DEI) initiatives in both academia and the private sector. Critics argue that DEI efforts have led to biased and unlawful employment and admissions practices, rather than fostering genuine inclusion. The executive order aligns with broader efforts to curb DEI-related policies, reflecting concerns that such initiatives amplify intergroup tensions rather than mitigating them.  

Further developments have affected research funding. A 90-day freeze on federal research grants, introduced on 20 January, was temporarily paused, but the U.S. administration continues to review related funding programmes. The U.S. National Science Foundation (NSF) has reportedly been warned of potential workforce reductions and significant funding cuts. Concerns have been raised about the impact such cuts could have on U.S. research leadership, with some scientists speculating that reduced funding opportunities may prompt researchers to seek positions abroad. 

The new administration’s approach to government restructuring has also targeted the U.S. Agency for International Development (USAID), which has long collaborated with universities to support global education, research, and development initiatives. USAID has faced significant restructuring efforts with reports indicating that the agency’s workforce could be reduced from 14,000 to under 300. USAID-funded higher education programs, which have historically supported research partnerships, workforce training, and capacity-building efforts worldwide, have been disrupted by stop-work orders and funding uncertainty. The potential dissolution of USAID has sparked concerns among policymakers and researchers, with critics warning of geopolitical consequences and reduced U.S. influence in global development efforts. 

While some of these measures are confirmed through official actions, others remain speculative or still pending. The extent of the proposed changes will depend on forthcoming policy decisions and legislative approval, leaving the higher education and research sectors in a state of uncertainty as these developments continue to unfold.