Federal Work-Study Program

(Federal Work-Study)

Department of Education

Proposed Cut

$1.1B

% Reduction

90.0%

Action Type

reduction

Who Is Served

~600,000 college students relying on campus employment

Summary

Federal Work-Study helps colleges pay wages for part-time campus and community-service jobs held by students who show financial need. Under the FY2027 budget proposal, the Department of Education would cut the program by 90%, or $1,077 million, shrinking federal funding from about $1.236 billion to roughly $123 million while requiring employers to cover 90% of student wages instead of the traditional 25%.

Who Is Affected

About 600,000 college students who currently hold work-study jobs on more than 3,000 campuses nationwide rely on this program to earn money for tuition, books, and living costs while gaining work experience. Colleges and the businesses, nonprofits, and campus departments that employ these students would also be affected, since they would have to cover 90% of wages instead of 25%.

What this cut would actually mean

With federal support cut this deeply and employers required to pay nearly all of a student's wages, most colleges and outside employers would likely eliminate or sharply shrink their work-study positions rather than absorb the added cost. Hundreds of thousands of low-income students could lose a steady source of income and career-related work experience, forcing many to take on more debt, work longer hours in off-campus jobs with less flexible schedules, or in some cases delay or drop out of school. The administration points to a companion increase in Pell Grant funding as an offset, but Pell Grants pay for tuition and costs rather than replacing the paid work experience and income FWS provides.

Sources

Trump's FY 2027 Budget Request Would Eliminate FSEOG, Slash FWS Funding, Increase Pell Grant — NASFAA reports the FY2027 budget would cut Federal Work-Study funding by 90% and shift wage costs to employers.
The Administration's FY 2027 Budget Proposes to Eliminate Crucial Basic Needs Investments — The Hope Center details the drop in Federal Work-Study funding from $1.236 billion to $123 million and the shift in employer wage share from 25% to 90%.
A Summary of the U.S. Department of Education's FY 2027 Budget Request — Holland & Knight summarizes the FY2027 Education Department budget, including the Federal Work-Study reduction and the wage-share policy change.
What Trump's Proposed Budget Cuts From Higher Education And Research — Forbes explains the roughly 90% cut to federal Work-Study contributions alongside the increase in Pell Grant funding proposed for FY2027.
Participation in Federal Work-Study — Community College Research Center reports Federal Work-Study serves about 600,000 students on more than 3,000 campuses nationwide.