What's at stake?
Local governments and agencies rely on hundreds of millions in federal support. Trump’s freeze on federal funds appeared to jeopardize key dollars that keep a number of agencies afloat, from road projects to firefighters to domestic violence services.
Update 1/29: The U.S. Office of Management and Budget rescinded its freeze on federal funding following a federal judge blocking it. However, White House Press Secretary Karoline Leavitt said Wednesday the freeze is still in effect. Local impacts remain unclear.
Fresno government and community leaders were scrambling Tuesday, like many others across the country, to assess the impact of President Donald Trump’s unprecedented freeze on federal funding.
A leaked memo from the U.S. Office of Management and Budget required revising federal assistance not in line with a Jan. 20 Trump executive order. In the 24 hours since, the federal OMB office issued clarifications on the impacts of the federal freeze.
On Tuesday morning, 23 states, including California, sued the Trump administration over the pause on federal funds. Minutes before the freeze was supposed to go into effect Tuesday, a federal judge temporarily blocked it until Monday, Feb. 3.
On Tuesday, Mayor Jerry Dyer said his team was researching the impacts of the federal funding pause, but didn’t comment on the specifics.
While some programs, including Medicaid, were not supposed to be impacted by the pause on federal funding, the national Medicaid system was reportedly down for several hours Tuesday morning. Sen. Ron Wyden, D-Oregon, wrote online Tuesday that his staff “confirmed reports that Medicaid portals are down in all 50 states.”
Other programs that are not supposed to be impacted by the federal OMB memo include Medicare, Social Security, Pell grants for low-income college students and rental assistance, among other programs that provide “direct benefits to Americans.”
U.S. Rep. Jim Costa released a public statement online saying “Congress, not the President, has the power of the purse.”
“President Trump’s unlawful freeze on federal funding will make it harder for people to access the basic services they count on,” read the statement from Costa’s office. “This includes funding for affordable housing programs, community healthcare clinics, disaster relief, water infrastructure projects, and repairing our roads and highways.”
Millions at stake for firefighters, domestic violence victims, and refugees
Officials with the City of Fresno, Fresno County and the Fresno Unified School District all told Fresnoland they are actively assessing impacts from the OMB memo. Several local agencies that rely on federal funding told Fresnoland the same thing.
Ahead of the OMB memo on Monday, the Fresno Immigrant and Refugee Ministries, a local nonprofit, received a ‘stop work order’ for its refugee resettling program Friday afternoon from the U.S. State Department.
In the U.S., refugees go through a years-long process of vetting to verify eligibility. When they arrive in the country, they are paired with a local organization — like FIRM — for help with housing, enrolling in English classes, getting their kids vaccinated to attend local schools and providing general support.
The order impacted 130 refugees landing in Fresno, according to Christine Barker, FIRM’s executive director. There are still five families they’re working with that are still in local hotels. Federal funds are supposed to help them find housing. Now, Barker said they’re looking to the community to find support for refugee families from Senegal, Afghanistan, El Salvador, and Haiti.
“We have to hope that after review, the administration will see that refugees are the most scrutinized visas that exist in the US government, and that after review, they see the fiscal, economic, and other benefits that welcoming refugees provides” she said to Fresnoland.
The City of Fresno relies on federal funding for a myriad of projects and funding priorities — including firefighters, road projects, and senior meals. The city’s current fiscal year budget relies on about $194 million in federal funds —- or nearly 10% of their $2 billion budget.
The Marjaree Mason Center, a local nonprofit that provides emergency and support services for domestic violence survivors in Fresno County, relies on millions in government grants every year.
“The survivors we serve cannot afford to wait while federal agencies review funding—they need our help now, in the aftermath of some of the most traumatic and difficult moments of their lives,” the center’s Tuesday statement read.
The statement went on to say the center is assessing the impact of the OMB memo and will plan for upcoming program expenses accordingly.
The Fresno Economic Opportunities Commission, a local poverty-fighting nonprofit, relies on more than $100 million in government grants every year for its myriad programs and services, including Head Start, a preschool program for families with lower incomes.
In a written statement, EOC spokesperson Jose Moreno said the nonprofit’s leaders are monitoring the situation closely and remain committed to providing vital services.
“At this time, we are awaiting further clarification and guidance from federal agencies,” Fresno EOC’s Tuesday statement read. “Until then, our programs will continue operating, and we are focused on serving the community to the best of our ability.”
Do you contract with the federal government or receive federal funding? Fresnoland would like to hear from you about what this week has been like. Contact us at tips@fresnoland.org.
Fresnoland editor Danielle Bergstrom contributed to this story.
Disclosure: Christine Barker, the executive director of FIRM, serves on the Fresnoland Board of Directors.
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