Federal grant freeze could hurt Valley organizations that help children, students, elderly
A federal judge has temporarily blocked a push from President Donald Trump to pause federal funding while his administration reviews spending to uproot progressive initiatives.
This reaction comes after President Trump announced a freeze all federal grants and loans for review of the spending, which is causing concern for organizations at national, state and local levels.
The Associated Press is reporting that the funding freeze could affect 'trillions of dollars, at least temporarily, and cause widespread disruption in health care research, education programs and other initiatives. Even grants that have been awarded but not spent are supposed to be halted. State agencies and early education centers appeared to be struggling to access money from Medicaid and Head Start, stirring anxiety with answers hard to come by in Washington.'
21 News spoke with some of the local organizations that received notification of funding for projects or rely on funding for their existence, and what this potentially means for them moving forward.
"This is frustrating just finding this all out today," said Jimmy Sutman, with Golden String's Gabba Camp. "We were just about to start drawing money from the account. Now, we see it is frozen. I stand here and view this as another economic stresser. But, I consider myself a patriot and I am going to follow what my leader says. All I can do is hope for the best."
Gabba Camp is working to use a $250k Appalachian Regional Commission Grant for a new heated greenhouse and test kitchen, along with accessible restrooms. But now the future isn't certain.
"We were awarded the grant and then we signed a contract in the fall," Sutman explained. "We have a legal contract that states we are going to be getting that money. I feel bad for other organizations with no contract yet. That money could just be pulled back."
Groups like the United Way of Youngstown call these funding sources a financial lifeline. A $1.5 million federal grant was recently approved for its Volunteer Research Center. Those dollars could go away.
"We were shocked and we're learning like everybody else," explained Bob Hannon with the United Way. "It's still very early in the game but these are our dollars. This is our money. All expectations from United Way is that we will receive that $1.5 million. But there's a lot of unknowns right now. This would be devastating for our United Way. When it comes to a long-term plan, we just dont have it yet."
While the impact is unknown until a decision is made, however, this freeze will impact the organization's ability to know their ability to fund programs that impact everything from health care.
The Office of Management and Budget sent a two-page memo to federal agencies Monday telling agencies to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance" that could conflict with President Donald Trump's agenda, according to NBC News.
Programs that may be impacted by the freeze includes school meals for low-income students, the WIC program for pregnant women and infants, and reintegration programs for homeless veterans.
Locally, we spoke Jennifer Merritt, Superintendent of the Mahoning Valley School which received $2.5 million in federal funds to build its new school with a gymnasium, art therapy studio, wellness center and additional classrooms for at-risk students in the Valley.
Merritt is concerned the freeze could leave the school, which is under construction, without funding to complete the project. Another concern is the free lunches the school offers for all of its economically disadvantaged students. Merritt said losing the promised federal funds would have a significant impact on the school.
“We had bi-partisan support of our community project which is to construct an addition to our community learning center on South Avenue," Merritt told 21 News. "This will allow us to expand workforce programs and wellness resources for our students. We will monitor what is happening with the funding and hope the current administration recognizes the incredible work we have been doing to provide education, opportunities, and better outcomes for youth in the valley who have experienced trauma and hardships and who have relied on us to help them succeed.”
The Western Reserve Port Authority's Anthony Trevena said he was hopeful the pre-approved funds awarded would not be negatively impacted by the freeze, but WRPA would keep an eye on reimbursements of projects.
YSU President Bill Johnson says it's not clear if any of the freezes could affect YSU. "If I were President of the United States and my nation was $36 trillion in debt, I would be reviewing everything in the accounts payable column of the ledger sheet."
Mike Iberis from the Second Harvest Foodbank said his organization doesn't receive funding grants directly from the Federal Government but said he is cautiously watching for the potential of cuts that may impact the number of people needing to use the facility's resources.
"Right now, we're going to continue to look at it," Iberis told 21 News. "I just don't see anything that is going to directly affect us immediately. Although, we are digging into it. I don't know how deep we have to dig into it."
The Boys and Girls Club is now delaying projects, including a community park until it is certain it's finances will remain. The group was recently awarded $1.5 million to create a community park. The space would feature an athletic space, beautification, and a walking trail.
Other programs that potentially be subject to the federal freeze include child care grant programs; temporary assistance for needy families; unemployment insurance; WIC Special Supplemental Nutrition Program for Women, Infants, and Children; energy efficiency and conservation grants and low-income home energy assistance better known as HEAP.