Trump’s proposed cuts to work study threaten to upend a widely supported program that helps students offset college costs
The Federal Work-Study Program, established in 1964 as part of the Economic Opportunity Act, has long been a crucial lifeline for nearly 700,000 college students each year, providing them with part-time job opportunities to help mitigate their educational expenses. This program allocates approximately $1 billion annually to colleges and universities, covering up to 75% of student earnings. However, recent developments have raised concerns about its future. The Trump administration has proposed a significant cut of $980 million to the program, which already faces uncertainty due to the absence of a federal budget for fiscal year 2026. Critics like Russell Vought, director of the White House’s Office of Management and Budget, have labeled work-study a “poorly targeted program,” sparking debate about its effectiveness in meeting the needs of low-income students.
Despite its bipartisan support over the years, the work-study program has been criticized for not fully addressing the financial challenges faced by students. Research indicates that the average earnings from work-study, around $2,300 annually, fall short of covering the rising costs of tuition and living expenses. Additionally, there are concerns about the equitable distribution of work-study jobs, as studies have shown that lower-income students may be less likely to secure these positions compared to their higher-income peers. The program’s effectiveness is also questioned, with some researchers arguing that it lacks sufficient evidence linking work-study participation to improved student retention and graduation rates. As the landscape of higher education evolves, experts suggest a reimagining of work-study strategies, including better outreach to eligible students and the creation of job roles that align more closely with students’ academic and career aspirations.
To enhance the value of the work-study program, universities are encouraged to take proactive steps. For instance, institutions like the University of Miami have implemented initiatives to educate students about work-study opportunities, providing personalized outreach and support for career readiness. By fostering a clearer understanding of eligibility and ensuring that available jobs align with students’ academic goals, colleges can better serve their student populations. As financial aid professionals emphasize the importance of addressing unmet financial needs, it becomes increasingly essential for universities to adapt their strategies in a time of reduced public funding and heightened scrutiny over student outcomes. The future of work-study may hinge on these reforms, ensuring that it remains a viable option for students striving to balance their education with financial responsibilities.
Work-study students often still have unmet financial needs, even after their 15- to 20-hour-per-week jobs fill in some of the gaps.
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Work study works, doesn’t it?
Federal work study
is a government program that gives colleges and universities approximately US$1 billion in subsidies each year to help pay students who work part-time jobs on and off campus. This program supports nearly 700,000 college students per year and is often an essential way students pay their expenses and remain in school.
The program has
generally garnered
broad bipartisan support
since its creation in 1964.
Now, the Trump administration is proposing to cut
$980 million from work-study
programs. The government appropriated $1.2 billion to work study from October 2023 through September 2024.
The government
typically subsidizes
as much as 75% of a student’s work-study earnings, though that amount can vary. Colleges and universities make up the rest.
With no federal budget passed for fiscal year 2026 – meaning Oct. 1, 2025, through September 2026 – the future of work-study funding remains uncertain.
In May 2025, Russell Vought, director of the White House’s Office of Management and Budget,
called work study
a “poorly targeted program” that is a “handout to woke universities.”
As college enrollment experts with over 40 years of combined
financial aid
and
admissions experience
, we have seen how work study creates opportunities for both students and universities. We have also seen the need to change some parts of work study in order to maintain the program’s value in a shifting higher education landscape.
Work study’s roots
Congress established
the Federal Work-Study Program
in 1964 as part of the
Economic Opportunity Act
, which created programs to help poor Americans by providing more education and job-training opportunities.
Work study was one way to help colleges and universities create part-time jobs for poor students to work their way through college.
Today, part-time and full-time undergraduate students who have applied for federal financial aid and
have unmet financial needs
can apply for work-study jobs. Students in these positions typically work as research assistants, campus tour guides, tutors and more.
Students earn at least federal minimum wage – currently $7.25 an hour – in these part-time jobs, which typically take up 10 to 15 hours per week.
In 2022, the National Center for Education Statistics
reported that
40% of full-time and 74% of part-time undergraduate students were also employed in both work-study and non-work-study jobs.
The federal government typically allocates more than $1 billion for the Federal Work-Study Program, covering about 75% of student workers’ wages.
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How work study helps students
Financial aid plays a critical role in a student’s ability to enroll in college, stay in school and graduate.
Cost and lack of financial aid are the most significant barriers to higher education enrollment, according to 2024 findings by the
National Association of Student Financial Aid Administrators
.
When students drop out of college because of cost, the consequences are significant both for the students and for the institutions they leave behind.
One other key factor in student retention is the sense of belonging.
Research shows that students
who feel connected to their campus communities are more likely to succeed in staying in school. We have found that work study also helps foster a student’s sense of belonging.
Work-study programs can also help students stay in school by offering them valuable career experience, often aligned with their academic interests.
Points of contention
Financial aid and enrollment professionals agree that
work study helps
students who need financial aid.
Still, some researchers have criticized the program for not meeting its intended purpose. For example, some nonpartisan
research groups
and
think tanks
have noted that the average amount a student earns from work study each year – approximately $2,300 – only covers a fraction of rising tuition costs.
Another issue is which students get to do work study. The government gives work-study money directly to institutions, not students. As universities and colleges have broad flexibility over the program,
research has suggested
that in some cases, lower-income students are actually less likely than higher-income students to receive a work-study job.
Other
researchers criticize
the lack of evidence showing work study is effective at helping students stay in school, graduate or pay their daily costs.
A final factor that prompts criticism is that full-time students who hold jobs
often struggle to balance
juggling work, school and other important parts of their lives.
Areas for possible change
Many students who are eligible for work study don’t know that they are eligible – or don’t know how to get campus jobs. There is no standard practice of how institutions award work study to students.
At some schools, the number of work-study jobs may be limited. If a student does not get a job, the school can reallocate the federal money to a different student.
Another option is for schools to carry over any unused money
to students in the next
academic year – though that doesn’t mean the same students will automatically get the money.
We think that schools can clear up this confusion about who receives federal work-study opportunities.
We also think that schools should explore how they are ensuring that eligible students receive work-study jobs.
Universities and colleges could also benefit from more proactively promoting work-study opportunities. For example, the
University of Miami’s First Hires
program educates students about work study, provides personalized outreach and supports career readiness through resume development and interview preparation.
Finally, colleges and universities could evaluate how work-study jobs align with students’ academic and career goals.
By creating clerical and professional roles within academic departments, schools can offer students relevant work experience that makes it easier for them to find work after graduation.
In an era of heightened scrutiny on
student outcomes
,
reduced public funding
and
growing skepticism
about the value of a four-year degree, we believe that universities could benefit from reimagining their financial aid strategies – especially work study.
Samantha Hicks is affiliated with the South Carolina Association of Financial Aid Administrators as current member and President-Elect and the Southern Association of Student Financial Aid Administrators as a current member and volunteer.
Amanda Craddock does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
