The Headlines
The Second Trump Administration:
What does it mean for US business schools?
President Donald Trump’s second administration has shaken up the US with executive orders and policy changes in a matter of weeks - but what does this mean for US business schools?
By Niamh Ollerton
A new administration has dawned in the US.
Donald J Trump was inaugurated for a second term as President of the United States of America on January 20th, 2025, and as with the beginning of any new administration, there is uncertainty in terms of priorities, appointments and processes.
Will campaign promises be kept? What changes lie ahead? What will the next four years mean for American citizens and the global community? And more specifically, what does it mean for the higher education community – and more specifically business schools in the US? The issue
Colleges and universities in the US are faced with heightened uncertainty about the coming years, with potential reform pressures and economic headwinds from both internal and external factors being a cause for concern.
Trump’s administration has forced foreign aid cuts and ordered diversity programmes to be culled - with the likelihood of millions of dollars of federal funding being slashed on the horizon.
The threat to visas for students hoping to study in the US, as well as the rights they may or may not have upon graduation, are both of great concern to faculty in business schools.
The first few weeks of President Trump’s second term caused agitation and turbulence across America’s campuses, with changes to policies not only threatening the nation’s higher education financial foundation, but also the future of academic programmes.
Potential drastic changes Trump has vowed to eliminate the Department of Education, which administers financial aid to college students.
For now, it is unclear the full extent of how such a move would affect higher ed operations.
In many instances, universities rely on tuition payments backed by federal grants and loans. Any significant changes to these programmes, like moving them under another federal department, or cancelling them completely, could cause huge disruptions for both students and universities.
However, following through on his plan to eliminate the Department of Education would require congressional action.
At the same time, this vow may never come into effect. Since the department was created in 1979, the Republicans have wanted it removed but have never actually done so, even with control over legislative and executive branches over the years.

Nevertheless, most colleges and universities across the US face negative impacts from stated policy initiatives by Trump’s administration - and the higher education community at large doesn’t know how to prepare.
To say the least, it has been a difficult few weeks for college presidents navigating Trump’s return to presidency - with the White House having endangered billions of dollars in federal higher education funds.
US National Science Foundation (NSF) grants were scrapped, (reopening its Award Cash Management Service on February 2nd); scientists have been told to stop lab work; and the Department of Government Efficiency (DOGE) also has slashed millions in research from the Department of Education.
In fact, on February 7th, the National Institutes of Health slashed reimbursement rates abruptly, cutting universities off from billions of dollars they usually receive.
Understandably, business school leaders criticised the funding halt, warning of delays in medical breakthroughs to address chronic diseases and cure cancer; in some instances adding concerns that they might be outright prevented.

Policy changes and scrutiny
Even if Trump fails to eliminate the Department of Education, new policy changes will be brought into colleges and universities - including some of the more extreme proposed policy positions from the new administration.
Since Trump’s first administration, Republican sentiment towards universities has hardened, with fresh scrutiny of campus policies (especially diversity, equity and inclusion policies), curricula and the ROI degrees offer graduates upon their job search.
Trump promised to reshape the college accreditation process to root out ‘ideological bias and misplaced priorities’; suggested he may ban transgender athletes from participating in college sports through executive action and even proposed creating the American Academy, a free online university funded by taxes on wealthy colleges, to stir up a ‘revolution in higher education’ and combat ‘wokeness’.
The resurgence in ‘anti-woke’ sentiment and ‘culture war’ actions will likely lead to apprehension in offering or even publicising courses on environmental, social and governance (ESG) or diversity, equity and inclusion (DEI).
For example, researchers and grant writers in the US are currently combing through proposals following reports of forbidden terms – including "LGBT" and "disability" – which they worry could put their own work in the firing line.
Trump’s executive order to minimise DEI programming across the nation has left college leaders unsure of what to do to comply with the federal government’s evolving expectations - some schools have renamed offices, with others cancelling events focused on racial diversity.

Anti-immigration policies effect on higher ed
Trump’s first term saw restrictions on immigration and a slowdown in visa processing hit student admissions (a reality which continued late into Joe Biden’s presidential term).
Trump’s non-education policy agenda will likely spill into the higher education sector, with Trump vowing to create new obstacles for international students, as well as the mass deportation of immigrants likely to disrupt a magnitude of university programs across the US.
The president’s “America first” rhetoric leaves many wondering about the future of a multicultural nation, that paired with the polarisation and stigmatisation of immigrants - views that were central to his election campaign in 2024 - business schools could be significantly affected.
The threat to visas for students hoping to study in the US, as well as the rights they may or may not have upon graduation, are both of great concern to faculty in business schools.
Many institutions have cast their student recruitment nets further across the globe, with increased recruitment from China, Japan and India, as well as students from emerging Asian countries like Vietnam joining business school cohorts.
Of course, to study within the US - a country known for its strict immigration laws - prospective students must receive F-1 visas to study, with many hoping to remain in the US for longer term employment by switching to H-1B status.
With a clamping down on immigration policies on the horizon within the Trump administration, it may be unsurprising that “MAGA” (Make America Great Again) Republicans want a cull of H-1B visas, under the guise of supporting home-grown talent, claiming H-1B visas allow employers to hire cheap foreign workers instead.
But does Trump support this view? At present, business schools are still in the dark regarding what the president will choose to do.
US business schools are readying themselves for tumultuous times, with rapid changes to programmes, policies and order set to become the norm. We may well be seeing a very different higher education landscape before Trump’s second administration comes to an end in four years’ time.