Threat of funding freeze sets off alarms

Local school superintendents, healthcare CEOs, city administrators and nonprofit leaders were all on high alert this week when they received a White House memo saying funding for assistance programs would be frozen in a matter of hours

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Columnists

January 31, 2025 - 1:39 PM

In his first two weeks in office President Donald Trump has signed dozens of executive orders from immigration and climate change to health and medical research, as well as eliminating federal diversity programs, directives defining gender and much more. On Tuesday, a memo from the Office of Management and Budget announced the goal to eliminate $3 trillion in assistance funding, resulting in an immediate freeze of disbursements. It was rescinded the next day. (Yuri Gripas/Abaca Press/TNS)

Tuesday afternoon Register reporters Vickie Moss and Sarah Haney and I began calling those we thought would be affected by the news that by 5 p.m. that day the federal government was going to freeze funding for assistance programs. 

Our list included the nonprofits Thrive Allen County and Hope Unlimited; Humboldt and Iola’s school districts; the Multi-County Health Department, SEK Community Health Center, Allen County Regional Hospital, SEK Mental Center and the Veterans Affairs health clinic. 

Most of those we visited were in the dark, saying Monday night’s announcement was unduly vague and they didn’t know if their services and programs would be targeted because they suddenly are not reflecting “MAGA values.”

When I read the two-page memorandum issued by the Office of Budget and Management, I felt their pain.

The parameters were a mile wide, but top of the list was the goal of ending “wokeness,” specifically the diversity, equity and inclusion hiring guidelines as well as the “green new deal.”

The memo said “the pause” would remain in place “until the Office of Management and Budget has a chance to review spending.”

We now know that is not the case.

On Wednesday, the administration rescinded the ill-thought-out policy.

“So what’s the big deal?” you ask. You can dry your “liberal tears.” This is what people voted for, right?

Consider the following.

On Tuesday, Cole Herder, city administrator of Humboldt, was sweating bullets knowing the city’s $13 million overhaul of its water system relied solely on federal grants and loans. 

And yes, to qualify for those funds the city attested it was following DEI guidelines so that while seeking bids it would consider all applicants regardless of their age, race, sexual identity or physical impairments.

If the funding were pulled, “It would mean we would not be able to continue providing water to our community,” Herder told me Thursday evening.

Herder immediately wrote to his state and federal representatives of his concerns, saying, “Our water system is failing. Our distribution lines are so corroded that we can no longer patch them, our three water towers will soon require full replacement if we do not complete necessary rehabilitation, and our 40-year-old water plant’s ability to provide safe water is in jeopardy, if we do not receive the loan and grant funds that were promised by USDA-RD in 2022.”

Knowing now that the executive order has been pulled, Herder wonders if his message came across “a bit dramatic and desperate.” At any rate, he said, “It was a relief to hear that a judge had temporarily stopped the order and the Administration rescinded it. It’s not necessarily a green light, but at least it feels like a break.”

In our visits with local employers, most were concerned about staffing and programs.

At Hope Unlimited, the center that provides assistance to survivors of domestic violence, almost all staff positions are paid by federal grants, said Director Dorothy Sparks. 

Thrive Allen County currently has 10 federally funded grants that provide about 40% of payroll for its 26 employees and two interns, said Jessica Thompson, deputy director. 

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