Federal funding freeze sparks concerns among Nebraska groups
By Abigail Carerra
LINCOLN, Neb. (KOLN) - Nebraska organizations are urging the Trump Administration to reconsider its plan to pause federal grants and loans starting Tuesday, as it could possibly negatively impact thousands of Nebraskans.
On Monday, President Donald Trump informed agencies that a freeze on federal assistance would take effect at 4 p.m. so administration officials could begin an across-the-board ideological review of its spending.
The Associated Press reported the funding freeze could temporarily affect trillions of dollars and cause widespread disruption in health care research, education programs and other initiatives. Grants that have been awarded but not spent are also supposedly being halted.
Trump’s Administration said that federal assistance to individuals would not be affected, including Social Security, Medicare, food stamps, student loans and scholarships.
U.S. Congressman Mike Flood issued the following statement in response to the recent order:
“President Trump is right to pump the brakes on federal spending. America needs to watch the piggy bank and the new administration is the most vulnerable right now as grantees are taking advantage of the newness of the leadership change. This will sort itself out in days, and it will end up being incredibly popular because people worried about federal spending have been asking for this for years.”
Nonprofit Nebraska Appleseed commented on the announcement and said while the scope of what the freeze could impact remains unclear, there is the potential that it would include SNAP, childcare subsidies, basic cash support for families, school feeding programs, rental assistance, programs to support workers, federal foster care funding, Medicaid, the Children’s Health Insurance Program, and many more services.
“The Administration’s sweeping freeze on federal funding will at a minimum create confusion and delay for people seeking basic support to navigate their everyday lives. At worst, it will leave our friends, neighbors, and communities suffering,” Nebraska Appleseed Executive Director Becky Gould said.
Coalition Nebraska For Us State Director Angie Lauritsen issued the following statement, “From what Nebraska For Us can tell, everything from rental assistance, to WIC and home heating funds, along with TANF, Head Start, and Title I education funding could be in danger. These are programs that help working class Nebraskans, who are just fighting to get by, feed their kids and send them to school. This latest order throws so much of our lives into confusion and chaos.”
University of Nebraska System’s response:
The University of Nebraska System has been working to fully understand the scope and impact the freeze could potentially have on their federally sponsored research and other federally funded programs.
So far, the institution has learned the following:
The U.S. Department of Education confirmed that Pell Grants and federally sponsored direct student loans will not be affected currently by this pause.
Federal agencies have been directed to submit detailed information to the Office of Management and Budget (OMB) by Friday, Feb. 7, regarding any programs, projects, or activities subject to this pause.
OMB has instructed agencies to pause all activities related to open Notices of Funding Opportunity (NOFOs), such as conducting merit review panels. The memo further states that agencies must halt: 1) The issuance of new awards, 2) the disbursement of federal funds under all open awards, and 3) other relevant agency actions that may be implicated by executive orders.
NU President Dr. Jeffrey Gold said their primary focus is on gaining a clearer understanding of how this pause will impact research and programmatic grants and contracts—including those already awarded. Additionally, they are working to identify next steps for faculty, staff, administration and students.
“To that end, we are in close contact with federal agencies, national higher education associations, and our peer institutions, collaborating to navigate this situation together. Additionally, we are creating a shared website to centralize resources and information,” Dr. Gold said. “As always, I am deeply grateful for your dedication to our students, our state, and the advancement of science, the humanities, and the arts—both within our institution and beyond."
City of Lincoln’s response:
“Federal funding is critical to our City’s ability to keep residents safe and healthy, grow our local economy, create affordable housing, build and maintain infrastructure and develop our workforce. We are currently working to gain a clearer understanding of the impacts of this executive order. However, implicated funding includes $23 million for the new Multi-Modal Transportation Center and $66.7 million for the 33rd and Cornhusker Improvement Project, as well as funding for many other city projects and programs.
“We also understand a federal judge has issued a temporary halt on the pause in this assistance. We will work with our congressional delegation and continue to collaborate with federal agencies and city partners to ensure critical funding continues. We are committed to providing the best level of service to the residents of Lincoln.”
