Nonprofits and government agencies are trying to understand the impacts of President Donald Trump's sweeping order on Tuesday pausing all federal grants, loans, and other aid. (GV Wire Composite/Paul Marshall)
- President Trump's memo pausing federal funds forced local governments, nonprofits, and public entities to review whether they'll lose hundreds of billions of dollars in grants and loans.
- A federal judge Tuesday afternoon put a stay on Trump's order saying the administration didn't fully grasp the extent of the order.
- White House Press Secretary Karoline Leavitt said the order does not affect direct payments to individuals.
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Nonprofits, local governments, and other agencies are scrambling to understand what funds might be in jeopardy following a sweeping declaration from President Donald Trump pausing all federal grants, loans, and other aid.
Trump clarified Tuesday through the Office of Management and Budget that his Monday memo would not affect Social Security, Medicare or Medicaid, or welfare programs such as Supplemental Nutritional Assistance Program, known as SNAP.
What’s less clear is whether the hundreds of billions of dollars in already agreed-upon money to schools, water and construction agencies, police departments, and so much more would be fulfilled.
A federal judge on Tuesday temporarily blocked a push from President Donald Trump to pause federal funding while his administration conducts an across-the-board ideological review to uproot progressive initiatives.
However, the order from U.S. District Judge Loren L. AliKhan came minutes before the funding freeze was scheduled to go into effect. It lasts until Monday afternoon and applies only to existing programs.
Related Story: Federal Judge Temporarily Blocks Trump Administration Freeze on Federal Grants ...
Costa: ‘Trump’s Unlawful Freeze’
Rep. Jim Costa (D-Fresno) characterized the president’s order as illegal.
“President Trump’s unlawful freeze of federal funding will make it harder for people to access the basic services they count on. This includes funding for affordable housing programs, community healthcare clinics, disaster relief, water infrastructure projects, and repairing our roads and highways,” Costa said in a statement.
“Let me be clear: Congress, not the President, has the power of the purse. This action undermines our constitutional system of checks and balances.”
California Sen. Alex Padilla, a Democrat, also said the move was illegal.
“Donald Trump is illegally blocking hundreds of dollars for essential federal programs to support families recovering after catastrophic fires, law enforcement agencies we rely on to keep our communities safe, and children and families who depend on federal child-care and nutrition programs,” Padilla said in a statement.
Padilla’s office said the 988 Suicide and Crisis Lifeline could lose funding as could mental health services.
The memo as written also cuts funds and grants from disaster relief programs, public safety and infrastructure projects, housing funds, and child care programs, Padilla’s office reported.
City and County Investigate Trump’s Order
The city and county of Fresno have directed all departments to look into how the order will affect them.
“We’re looking into everything,” said Sonja Dosti, public information officer for Fresno County. “We’ve asked all departments to check impacts on them.”
Sontaya Rose, chief communications officer with the city of Fresno, said staff is researching what impact the order will have.
“We are trying to determine what the implication will be from a cash flow perspective,” Rose said.
Sen. Alex Padilla’s office said the 988 Suicide and Crisis Lifeline could lose funding as could mental health services. (Shutterstock)
Police and Fire Departments Examine Funding
Fresno Police regularly uses federal funds for programs. The Police Funding Database identified $7 million in federal grants to support law enforcement since 2015. Most recently, the city was approved for a $1.5 million grant from 2022 to help with hiring. That program is set to end in 2027.
In February 2023, the city announced $7.4 million in grants from the Federal Emergency Management Agency to help hire 24 new firefighters.
The city did not immediately answer whether those grants have been fully paid out.
Transportation and Irrigation Funding
Major transportation projects also rely on federal funds to pay for projects. CalTrans and the California High-Speed Rail Authority said in statements to GV Wire they are working to receive clarity.
Bill Stretch, general manager of the Fresno Irrigation District, said he found out about the order in the news. The agency is awaiting federal grant money for water recharge basins. He expects to hear by the end of the week what will happen to those funds. Westlands Water District also receives federal funds.
“We have not heard from that agency or any agency or any individual that those grants could be impacted,” Stretch said. “They might be, they might not. So, we’re at work and we’re waiting to hear more.”
What About Education Grants?
Schools rely on federal grants for many operations, special education in particular. The Council of Great City Schools said states already received funding under the Individuals with Disabilities Education Act for the year.
“The funding pause … only applies to discretionary grants at the Department of Education,” according to a memo sent out by the organization. “These will be reviewed by Department leadership for alignment with Trump Administration priorities.”
The Council has sought clarification on whether states can pay out money for Title I and IDEA.
Confusion About Essential Medicaid, Social Programs
During the White House press briefing Tuesday, press secretary Karoline Leavitt said federal payments made directly to individuals would not be affected. That means Social Security, Pell Grants, Medicaid, Medicare, and more.
Despite that claim, three Democratic senators reported that some states were not able to access reimbursement funds for the program, The Hill reported Tuesday. Leavitt wrote on X that while the administration was “aware of the Medicaid website portal outage,” no payments had been affected and they will be sent out.
Programs Will Continue for Now: Fresno EOC
The Fresno Economic Opportunities Commission, which administers health, nutrition, and social programs across the county, said in a statement to GV Wire that programs will continue while it awaits clarification from the government.
“While we are monitoring this evolving situation closely, we want to assure the community that Fresno EOC remains committed to providing the vital services that families and individuals in Fresno County depend on,” an EOC spokesperson said.
Marjaree Mason Center Asks for Charitable Support
The Marjaree Mason Center took the opportunity to emphasize the importance of charitable giving considering the unreliability of federal funds.
“This situation is a stark reminder that while federal grants are invaluable, they are not always reliable, and philanthropy plays a critical role in sustaining essential services. Thanks to the generosity of our dedicated donors and community supporters, the Marjaree Mason Center remains committed to providing uninterrupted support for survivors during this uncertain period,” the domestic violence shelter said in a statement.
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