As word spread about the Trump administration’s freeze on federal grants and loans ordered Monday, emergency meetings were called by many nonprofits, agencies and programs that rely on that funding to provide services to the community.
By Tuesday afternoon, a U.S. judge temporarily paused the freeze until a hearing in federal court on Feb. 3 in Washington, D.C.
The White House Office of Management and Budget (OMB) had ordered all federal agencies to pause grants in order to “review agency programs and determine the best uses of the funding for those programs consistent with the law and the President’s priorities,” OMB acting director Matthew Vaeth wrote in a memo Monday to all department and agency heads.
The City of San Antonio decided to carry on, at least for now.
“The implementation details are not clear,” City Manager Erik Walsh said in an emailed statement. “In short, we do not know which or to what extent City departments and programs may be impacted, until we receive further guidance.”
The city’s fiscal year 2025 budget includes about $325.5 million in federal funds for operating programs and capital projects from affordable housing initiatives to airport construction, Walsh noted. “We will continue to focus on delivering City services while we monitor the situation to better understand the implementation scope, timing and potential impact.”
Other agencies, especially those that conflict with President Donald Trump’s myriad of executive orders, may see funding cut off if or when the order goes into effect. It was originally slated to take effect today at 5 p.m.
While the memo and subsequent clarification sent out by OMB states the funding freeze “does not include assistance provided directly to individuals,” some nonprofits have already experienced interruptions, said Scott McAninch, president and CEO of the local Nonprofit Council.
Medicaid and Head Start centers have been locked out of federal funding websites, McAninch noted.
“A [funding] pause, no matter how many days or weeks, will have a severe impact on the operations of nonprofits,” he said. “It’s hurting the people who are being served in our community. That’s the bottom line.”
The funding freeze almost immediately drew a lawsuit from national groups including The National Council of Nonprofits, the American Public Health Association, Main Street Alliance and SAGE, which advocates for LGBTQ+ elders.
“It’s just a moving target,” McAninch said. “We just want our nonprofits to know we’re watching it, and … will be any kind of voice that we can be.”
If the uncertainty continues, the funding freeze is sure to be a main topic of conversation as the Greater Chamber of San Antonio brings a local delegation of leaders to D.C. in March, he noted.
“The only certainties to emerge from the administration’s pause on federal financial assistance are chaos and fear, and if that’s the actual goal – mission accomplished,” Mayor Ron Nirenberg said in a text.
“These funds were approved by Congress and are our tax dollars that San Antonio residents sent to Washington,” he wrote. “We will be closely monitoring the situation and will keep the public updated on impacts to the city.”
