Latest Federal Funding Update - Aug. 28, 2025
Dear Campus Community,
I want to provide you with an important update regarding recent federal guidance and how it affects Olympic College.
On July 29, 2025, the U.S. Department of Justice issued a memorandum to all entities that receive federal funding regarding the interpretation of federal nondiscrimination laws. While the guidance is not legally binding, it does provide insight into how the current administration is interpreting certain aspects of these laws, which differs in some respects from prior federal interpretations.
For community and technical colleges in Washington, this guidance has a direct impact on Perkins grant funding. To receive Perkins funds, both the State Board for Community and Technical Colleges (SBCTC) and individual colleges must certify compliance with federal law. At this time, SBCTC has not yet completed that certification, and therefore no community college in Washington has received Perkins funding for the current year.
The certification language first appearing with Perkins is also now showing up in certifications for other federal funding sources. For Olympic College, these other funding streams could total several million dollars. Because the certifications are signed by an individual on behalf of the College, and because federal law provides for significant penalties under statutes such as the False Claims Act, there is both an institutional and personal risk component if certifications are signed in a manner later found to be inconsistent with federal requirements. This is why the College cannot simply “sign now and work out details later” — each certification must be reviewed carefully to ensure accuracy and compliance.
In the meantime, Olympic College has been covering all position-related expenses normally funded by Perkins with local funds. Other Perkins-funded operating expenses, however, are currently paused. If federal funding is not ultimately released, the College could face an annual shortfall of approximately $500,000 in Perkins funding, in addition to risks to other federal revenue streams.
Because of this uncertainty, we have decided to implement precautionary measures to help protect the College’s financial stability. Effective immediately:
- A soft hiring freeze is in place. This applies to all budgeted positions. When a position becomes vacant, it will not be automatically refilled. Instead, each vacancy will be reviewed individually by the Executive Team to determine whether it is essential to refill at this time.
- Vice Presidents and Chief Officers have been directed to limit discretionary travel and related expenses. This is not a prohibition on travel, but travel authorizations will be more closely scrutinized before approval.
Please note:
- Olympic College remains confident that our current programs and practices are compliant with federal law.
- The new federal memo does not change the law but does signal shifts in how the administration may apply it.
- Interim President Joan Hanten, Vice President of Diversity, Equity, and Inclusion Shawn Best, myself, and the Executive Team are working closely with SBCTC, the Washington Attorney General’s Office, and other partners to fully understand the implications and the breadth of potential impacts.
- We will continue to monitor developments closely and keep the campus community updated as we learn more, or if additional precautionary measures may be necessary.
We recognize that these developments may create uncertainty, and we will continue to communicate as more information becomes available. Thank you for your patience and for your ongoing commitment to serving our students.
Update: Jul. 29
Dear OC community,
As many of you know, we are closely monitoring all updates related to federal funding received by Olympic College. Please review the last update regarding federal “pass-through” grant funding received by Olympic College here.
The OC Executive Team continues to monitor all relevant updates from State Board of Community and Technical Colleges (SBCTC) on the status of federal pass-through grants. However, the original date SBCTC provided as the anticipated date of resolution, July 15th, has been extended. As of now, SBCTC has announced that the WorkFirst grant has received notifications of funding through June 30, 2026. Other grants, such as BEdA and Perkins, remain under review and no funding has been released. Please review the decision memorandum regarding the status of BEdA and Perkins funding through September 30, 2025.
We are committed to providing you all with regular updates as new information becomes available to ensure our community stays informed and feels supported as we navigate these changes. The Executive Team continues to evaluate the long-term impacts of these delays and will continue to provide relevant updates as decisions are made.
We understand that the current state of confusion and uncertainty may be frustrating. We are doing our best to interpret the changing landscape as it evolves and appreciate your patience as we work through these developments. Thank you for your patience as we navigate this situation together. If there are any further changes, we will keep you informed. Updates will also be posted on our webpage: Federal Funding Updates.
Thank you for your continued dedication to our students, colleagues, and the broader campus community.
Update: Jun. 27
Dear OC community,
As many of you know, we are closely monitoring all updates related to federal funding received by Olympic College. We are committed to providing you all with regular updates as new information becomes available to ensure our community stays informed and feels supported as we navigate these changes. With this in mind, we have an update regarding federal “pass-through” grant funding received by Olympic College. Examples of pass-through grant funding include BFET, WorkFirst, Perkins, BEDA, and some smaller grant funding originating on the federal level.
Olympic College, along with other Washington State colleges, is part of a system of colleges supported by the State Board of Community and Technical Colleges (SBCTC). As such, certain federal pass-through funding is processed through SBCTC before it is received by OC. While all colleges in our system have received either the reassurance or notification of federal funding approval for fiscal year 2026 (FY26), SBCTC has not received the final terms and conditions for these grants in FY26. This means the funding has been awarded, but not yet distributed to the colleges. Typically, funding is released with the turnover of the fiscal year, which occurs on July 1 each year. This year, SBCTC has advised they will be “pausing” the release of these allocations until the Attorney General’s office has determined that SBCTC can meet any changes in terms and conditions for these funds. This means that system colleges will most likely not be awarded the allocated funds by July 1. We have been assured that the State Board and Washington Attorney General’s office are working diligently to finalize the terms and conditions for these vital grants.
Due to this delay, Olympic College will locally cover the expenses for all affected grant activities through the month of July to avoid any interruption in service. The State Board has communicated to all colleges that once terms and conditions are approved through the Attorney General’s office, the costs covered by the individual colleges will be reimbursable dating back to July 1.
As of now, the State Board expects to have a substantive update to all SBCTC colleges by July 15. At that time, college leadership will work in close consultation with the State Board, the Attorney General, and other system colleges to determine the next steps.
Not all SBCTC colleges have decided to cover costs associated with these grants, and the strategic decisions made at other colleges may differ from the decision of OC. Please keep these potential differences in mind when interacting with your counterparts at other colleges that may also be experiencing this funding delay.
The State Board has also contacted affected college administrators directly. If you received communication directly from State Board on your impacted grant and you have additional questions or concerns, please contact your unit’s Chief Officer or Vice President.
We understand that the current state of confusion and rapid changes may be frustrating. We are doing our best to interpret the changing landscape as it evolves and appreciate your patience as we work through these developments. Thank you for your patience as we navigate this situation together.
Thank you for your continued dedication to our students, colleagues, and the broader campus community.
Olympic College Executive Team
Update: Jan. 29, 2pm
The White House Office of Management and Budget (OMB) has rescinded the temporary pause on federal grants, loans, and other financial assistance programs. For now, federal funding processes will resume as normal.
We understand that the current state of confusion and rapid changes may be frustrating. We are doing our best to interpret the changing landscape as it evolves and appreciate your patience as we work through these developments.
While this pause has been lifted, federal funding policies may continue to shift. We are closely monitoring any further changes and will provide updates as we learn more. We will continue to share updates on this blog page as new information becomes available.
Thank you for your patience as we navigate this situation together. If there are any further changes, we will keep you informed.
Update: Jan. 28, 1:15pm
To: Olympic College Students and Employees,
On January 27, 2025, the White House Office of Management and Budget (OMB) issued a memorandum requiring a temporary pause on federal grants, loans, and other financial assistance programs to allow for a comprehensive review of these programs.
The federal funding pause does not apply to student loans and Pell Grants, as confirmed by the U.S. Department of Education. We do not believe this will impact student financial aid or other direct support programs at this time.
This pause, however, is likely to have some impact on the college, and we are currently evaluating what this means for our programs, operations, and community. Our leadership team is actively monitoring developments and working with the Washington State Board for Community & Technical Colleges and other relevant organizations to better understand the implications.
We understand this directive may raise questions and concerns. As we continue to gather more information, our priority is to keep you informed and provide updates as soon as they become available.
Despite the seeming constant change implemented by the new presidential administration, please know Olympic College remains committed to your safety, rights, privacy, and access to education. Thank you for your patience and understanding as we navigate this evolving situation.
We will continue to post these date stamped updates on our Federal Funding Updates Blog Page.
Sincerely,
Joshua Masters (he/him), SPHR
Executive Vice President
Olympic College Executive Team
