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Editor’s Note: Update: On Wednesday, Jan. 29, President Donald Trump’s administration announced it would reverse course and rescind a decision to freeze spending on federal grants. The move came after substantial outcry from leaders, both nationally and locally.
The Trump administration’s announcement on Monday, Jan. 27, that it was implementing a federal spending freeze left local leaders with numerous questions and significant concerns about what it would mean for programs and services that rely on federal funding.
A Jan. 27 memo from the U.S. Office of Management and Budget announced that “federal agencies must temporarily pause all activities related to obligation or disbursement of all federal financial assistance.” The order prompted confusion from national, state and local officials about the extent of the freeze, as well as opposition to the halt on federal funding.
The memo exempts Medicare and Social Security benefits, as well as “assistance received directly by individuals,” but lacks details on what that would mean in practice.
Officials across the country raised concerns about the impact of putting federal funding on hold for early childhood programs, major infrastructure projects, health care and housing programs that support low-income populations.
On Tuesday afternoon, Jan. 28, a federal judge in Washington, D.C. temporarily suspended the implementation of the spending freeze until Feb. 3.
With rapid changes and a lack of information, local elected officials, nonprofits and government entities were left with no shortage of questions on Tuesday afternoon.
Responses from local elected officials
Local elected leaders responded to the federal funding freeze, denouncing the sweeping implications of the order and promising to challenge it.
“This freeze on federal grants is illegal, immoral, and dangerous,” said state Sen. Josh Becker, D-Menlo Park. “These funds support critical programs and jobs that people depend on every day. Halting them would put lives at risk, jeopardize major infrastructure projects, and hurt the economy by driving up unemployment.”
Becker listed several public safety investments threatened by the freeze, such as firefighting, police, homeland security and anti-fentanyl programs. He also noted that grants for affordable housing, school meals and reproductive health care were at risk.
“The UC system alone faces $6 billion in losses, with statewide impacts totaling $50 billion in losses to our economy. No district – red or blue – would be spared from the harm,” Becker said.
Similarly, state Assembly member Marc Berman, D-Menlo Park, criticized the halt in federal funding, describing it as part of the chaos and confusion of the Trump administration.
“While it is hard to determine the full impact due to the vague language of the order and contradictory statements that have come out of the White House today, the uncertainty it has created is already having a devastating impact on programs that support disaster victims, law enforcement programs, early childhood education, and so much more,” Berman said.
Berman praised state Attorney General Rob Bonta for filing a lawsuit to block the order, a sentiment shared by other elected officials
“Sensible budget-cutting requires discernment, not disregard for human suffering from halting essential public safety, health care, or disaster relief,” said U.S. Rep. Sam Liccardo. “I will fight to push the President to abide by the 1974 Budget and Impoundment Control Act and our Constitution” he said.
Maggie A. Cornejo, executive director of the San Mateo County Sheriff’s Activities League, said in a written statement that her organization will continue providing critical services to county youth.
“The Trump Administration’s position to temporarily freeze federal funding will have a direct impact on SAL’s budget,” she said. “Despite that reality, we will continue to serve San Mateo’s children and will not turn anyone away. Now more than ever, we are going to need community support to assist us with our mission of being a lifeline for San Mateo County’s youth.”
Nonprofits and other groups
The federal funding freeze has also prompted alarm for various organizations that rely on federal funding to support their operations.
In Mountain View, the Community Services Agency released a statement noting that it relies on federal money to help fund its programs. CSA serves thousands of the most vulnerable residents in Mountain View, Los Altos and Los Altos Hills, providing food, direct financial assistance, case management and other services.
The nonprofit receives federal funding to support programs including its food and nutrition center, services for homeless individuals, homeless prevention services, senior case management and senior nutrition, Executive Director Tom Myers said.
“We are evaluating the potential impacts of this freeze on CSA’s programs and will keep the community informed,” he said in a statement. “Thank you for your continued support during this time.”
Housing will take a hit from the funding freeze, according to YIMBY Action, a statewide nonprofit housing advocacy group that released a statement Tuesday.
“This unprecedented funding freeze, taking place in the midst of a historic nationwide housing shortage, will have devastating consequences for every member of our society, especially those already facing housing insecurity,” said Laura Foote, executive director of YIMBY Action.
YIMBY Action listed several programs administered by the U.S. Department of Housing and Urban Development that were at risk. This includes Section 8 Housing Choice Vouchers and Project-based Rental Assistance, which help house low-income families, seniors and people with disabilities.
It also noted that the freeze would likely impact grants that fund shelters, outreach and permanent supportive housing for people experiencing homelessness, as well as grants that help individuals and families stay in their homes.
“Everyone who relies on affordable housing production is damaged by this arbitrary and capricious action, from the senior citizens living in subsidized housing to the corporations who rely on predictable contracts to deliver the homes we desperately need,” Foote said. “At a time when housing costs are prohibitively expensive for so many, this is a devastating blow that will only make our economic conditions worse.”
Almanac Editor Angela Swartz contributed to this story.
This is a developing story and will be updated.
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