While the Trump administration’s halt on certain federal grants and other financial support goes before a district court judge on Monday, Peninsula city leaders, service groups and care providers say any pause in funding could have a tremendous human impact.
“It’s just been two days of constant communication and trying to decipher what this means,” said Angela Futrell, CEO of the Southeast Virginia Health System.
The U.S. Office of Management and Budget issued a memorandum Monday evening that required agencies “complete a comprehensive analysis of all of their Federal financial assistance programs” to ensure they abide by President Donald Trump’s executive orders issued last week.
It read that “to the extent permissible under applicable law, Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”
It was to go into effect Tuesday evening before being temporarily blocked by U.S. District Judge Loren AliKhan until Feb. 3. The office has since rescinded the memo, though the White House said that the freeze and requirement for agencies to review their programs have not.
The memo has been confusing and concerning for people needing the money. While a fact sheet released by the White House Tuesday afternoon indicated the freeze “does not apply across-the-board” and that programs such as Social Security, Pell grants, Medicare and Medicaid are excluded, the Virginia Mercury reported access to Virginia’s Medicaid portal was temporarily paused.
“I want to be clear that our services are still ongoing,” said Daphne Cunningham, deputy director of the Hampton-Newport News Community Services Board, which receives 45% of its funding through Medicaid billing and grants. “The thing that is the most concerning is we wake up one day and think we’re on sound footing and we’re not.”
At a Thursday press conference organized by Virginia 3rd District Rep. Bobby Scott, Futrell said her organization was unable to access funds it uses to pay its employees until 4 p.m. Tuesday.
“We heard things from the system is overwhelmed to maintenance is in order,” she said. “I have colleagues who are actually sitting in the audience today and they have yet to be able to receive their drawdown.”
A drawdown is the process for recipients to electronically receive their awards.
Michel Bilé, Hampton Roads Community Health Center CEO, said his facility is one of those Futrell referenced.
“Right now, I’m looking at cutting some services because my drawdown did not come through,” he said. “We are the only OB facility in the city of Portsmouth.”
Newport News Mayor Phil Jones said federal grants for city projects and initiatives operate on a “reimbursement basis” and are not provided until city money is spent. He said the city has just under $6 million in reimbursements still pending and $80 million in federal grants allocated but not yet spent.
“This is causing a lot of chaos at the federal level, at the state level and at the local level,” Jones said. “I would encourage everyone to come together, because we need to ensure that we have a common operating picture going forward.”
In an email to WHRO Tuesday morning, Hampton Deputy City Manager Brian DeProfio said the city was “reviewing the full extent of the potential impacts” of the freeze on its more than $27 million in grants, $20 million of that is earmarked to protect the historic Aberdeen Gardens neighborhood from flooding.
Representatives of various service groups and care providers said they are crafting contingency plans in case the freeze is allowed to go into effect after Monday.
Scott called the freeze an illegal impoundment of money Congress had approved, something the Trump administration argues is not true.
“You don’t get to make up stuff as you go,” he said. “Money has been appropriated by law. It’s up to the president to execute, faithfully execute, the laws.”
