Trump administration is renowned for dominating the headlines with its executive orders and policy changes that usually send a ripple of shockwaves in Silicon Valley. In a sweeping policy amendment that stands to transform federal student aid accessibility, the Trump administration has declared trimming off of the nonbinary gender option from the Free Application for Federal Student Aid (FAFSA). The directive, set to take effect from the 2025-26 enrollment cycle, is a direct outcome of a recent executive order mandating that all federal agencies recognize only male and female as legal sex classifications. The decision has initiated a widespread discourse, especially among LGBTQ+ advocates, voicing grave concerns about its profound implications for gender-diverse students seeking financial aid.

Official justification and policy shift

The policy change was officially declared on Tuesday by James Bergeron, the acting under-secretary of education, who further highlighted the cruciality of safeguarding an efficient and impartial application process.
USA Today quoted James Bergeron saying, “Families and students depend on the FAFSA form to plan their futures, and any release delays or unnecessary politicization of the form is wholly unacceptable.”
The policy adjustment follows President Trump’s directive, which requires all federal agencies to adhere strictly to a binary understanding of sex.

Impact on LGBTQ+ students

The elimination of the nonbinary option can have far-reaching implications for queer and transgender students. Not only does this directive blur their identities but also poses significant challenges for them in pursuing higher education.
A 2022 study conducted by the Williams Institute at the University of California, Los Angeles, revealed that LGBTQ+ students are four times more likely than their non-LGBTQ+ peers to enroll in out-of-state colleges in pursuit of an accepting and inclusive environment. However, with out-of-state tuition fees often being substantially higher, securing financial aid is a crucial necessity for many of these students.

Existing FAFSA gender selection guidelines

Prior to this policy change, FAFSA permitted candidates to identify as male, female, or out of specifying their gender. Previous guidance from the Department of Education advised transgender students to select the gender with which they identified at the time of application. Under the new policy, however, students will be restricted to selecting either male or female, thereby erasing federal acknowledgment of nonbinary identities in financial aid documentation.

Broader policy landscape and reactions

The decision is a branch of the broader initiative of the Trump administration that is poised to redefine legal gender classifications in a manner that systematically excludes nonbinary and certain transgender individuals. Critics forewarn that such measures can further augment the struggles encountered by queer students and can reinforce the already pervasive structural inequities. Cumulative ordeals can impede access to higher education and financial assistance.
As policymakers and advocacy organizations deliberate on the ramifications of this regulatory shift, the long-term impact on educational accessibility and inclusivity remains uncertain. Meanwhile, affected students and their families must navigate an evolving financial aid framework, shaped by these sweeping administrative changes.