US Slashes $100m in Study Abroad and Exchange Programmes

By Jace August 14, 2025
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The United States has cancelled funding worth $100 million for at least 22 international exchange and study abroad programmes, sparking concern across the education sector. The decision, announced internally by the State Department on 13th August, affects cultural and educational initiatives that were already approved by Congress for the 2025 fiscal year.

The directive from the Bureau of Educational and Cultural Affairs (ECA) cited “lower funding priorities in the current fiscal environment” as the reason for termination. However, stakeholders argue the move undermines decades of work in strengthening the US global ties through education and cultural diplomacy.

Programmes that impacted includes; the Kennedy-Lugar Youth Exchange and Study (YES) scheme, the Mandela Washington Fellowship, and the Young Southeast Asian Leaders Initiative, among others. Collectively, these initiatives support around 10,000 students annually and are widely regarded as central to the US soft power.

“This is an existential crisis for these programmes and possibly for ECA itself,” said Mark Overmann, executive director of the Alliance for International Exchange, which represents 13 of the affected schemes. He warned that sudden funding cuts could trigger layoffs, furloughs, and even closures of long-standing organisations.

Bill Gertz, chairman of the American Institute for Foreign Study, described the cancellations as “devastating”, adding: “It means students’ plans and dreams are impacted, and it means disruption at cultural exchange organisations which have worked tirelessly to make the world a better place.”

The decision has raised constitutional questions, with critics claiming that the White House’s Office of Management and Budget improperly overrode Congress’s authority to allocate funds. Some stakeholders argue the move could set a dangerous precedent for future international exchange budgets.

Leaders in the sector have launched campaigns urging Congress to intervene, warning that dismantling programmes would erode more than 75 years of cultural exchange, including the legacy of the Fulbright initiative.

For now, the cuts have shocked the US study abroad community and prompted fears of long-term diplomatic isolation at a time when cultural understanding is considered more vital than ever.

Source: THE PIE NEWS

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