The Federal Office of Management and Budget’s temporary pause Tuesday on grants, loans, and federal financial assistance programs that are targeted by President Trump’s executive orders was rescinded only 24 hours later, but not before sending local organizations into a panic.
“Any program not implicated by the President’s executive orders is not subject to the pause,” read a note on the White House website yesterday morning, before the order was rescinded. That assurance did little to quell concern at local nonprofits like the Retreat and Organizacion Latino-Americana (OLA) of Eastern Long Island.
“The Retreat, a leading nonprofit organization dedicated to providing comprehensive services to survivors of domestic violence, sexual assault, stalking, and human trafficking is facing an unprecedented crisis due to the sudden freeze of federal grant funding,” read a press release from the 37-year-old organization put out Tuesday afternoon. According to Cate Carbonaro, the Retreat’s new executive director, approximately 40 percent of the organization’s funding comes from federal grants.
“We weren’t worried, because we didn’t think we were in a priority area,” she said in a phone call yesterday. “We’re a non-political organization. We work with domestic violence and victims of trafficking. But then Tuesday I woke up and saw that every grant was frozen. Halfway through the day we weren’t able to access the funds. They didn’t say ‘We’re going to look at this.’ They said ‘We’re freezing everything and then we’re going to look at it.’ “
The emergency shelter, 24-hour bilingual hotline, counseling services, legal advocacy, and the Long Island Fatherhood Initiative, were all at risk, she said.
By late afternoon Tuesday, according to the Associated Press, the directive was halted by United States District Judge Loren L. AliKhan, and the funds freed up. However, the halt was only temporary. Before the order was completely rescinded early yesterday afternoon, the freeze would have gone back into effect on Monday.
“Thank God not a lot of our funding comes from federal grants,” said Minerva Perez, the executive director of OLA. However, for the last four years, her organization has received a Centers for Disease Control grant totaling a little over $100,000 annually. “It’s a tremendous loss if we lose that funding,” she said. “The C.D.C. Foundation money has been a wonderful way for us to get messaging out and connect people to health care.”
“OLA is growing. We have some programs funded by the state, but ideally there would be a way to work with the federal government,” she said.
Gov. Kathy Hochul was quick to release a statement Tuesday after the funds were frozen.
“In the hours since the federal government released their memo threatening to slash $3 trillion in federal funding, millions of New Yorkers have voiced their fears that this unprecedented step would take away their health care, defund their local law enforcement agencies, block repairs to roads and bridges, and so much more,” she said.
“The federal government committed this money to New York — they must keep their end of the bargain. For that reason, I am working with Attorney General Letitia James on new litigation to ensure these funds are delivered to New York as promised, and as required by law. And as we let the judicial process unfold, New York’s Republican leaders in Congress must step up and use their influence to protect our state, our people, and our federal funding.”
East Hampton Town Supervisor Kathee Burke-Gonzalez also expressed concern yesterday before the order was rescinded.
“While we understand the federal funding freeze has been put on hold pursuant to a judge’s order, the town continues to monitor the situation closely,” she said in a statement. “The proposed funding freeze has the potential to impact financial support for many of our important programs, such as affordable housing and senior nutrition. We are hopeful funding will continue to be allocated as has already been approved through the appropriate channels. Since the announcement, we have been in contact with our federal representatives for updates and for their assistance to keep the funding intact.”
Amidst the chaotic messaging from the White House, Representative Nick LaLota did not return a request for comment before The Star went to print yesterday afternoon.
“The pause does not apply across the board,” read a fact sheet on the White House website that was still available yesterday, after the order was officially rescinded. “It is expressly limited to programs, projects and activities such as ending D.E.I., the green new deal, and funding nongovernmental organizations that undermine the national interest.”
Social Security, Medicare, Head Start, Pell grants, and programs like Medicaid and the Supplemental Nutrition Assistance Program, would not have been affected according to the White House. Agencies that were concerned about the status of their funding were advised to consult the Office of Management and Budget “to begin to unwind objectionable policies.”
