Administration officials said the decision was necessary to ensure that all funding complies with Trump’s executive orders, which are intended to undo progressive steps on transgender rights, environmental justice and diversity, equity and inclusion, or DEI, efforts.
But then U.S. District Judge Loren L. AliKhan blocked the action Tuesday afternoon, minutes before it was set to go into effect. Then Wednesday afternoon, the same Office of Management and Budget that issued the guidance rescinded it.
That capped, for now, two days of frenzied debate over how the order would have affected everything from Medicaid and Head Start to the start of Ohio’s two-year budget process, which normally would begin next week.
Credit: NYT
Credit: NYT
Clark County impacts
The loss of federal funding could have impacted local agencies that provide social services and other types of assistance to the community.
Clark County administrator Jenny Hutchinson emphasized that federal funding directly to individuals was not part of the review.
“There is a temporary halt on this pending court ruling, but we’ll have to wait and see what’s been approved,” she said. “There’s a lot of concern, not just from (Job and Family Services) but also from (the Emergency Management Association).
County Health Commissioner Chris Cook said while aid directly to citizens should not have been affected, there could have been a financial impact on public health’s programs.
“The waters are muddy right now and I don’t know anyone who can claim to be able to see clearly to the bottom of where we are headed,” Cook said. “But as of right now our citizens will not see any disruption in the essential high-quality public health services that we deliver.”
Credit: Bill Lackey
Credit: Bill Lackey
Cook said he is “cautiously optimistic” based on past precedent that funds that have already been awarded (through a Notice of Award, or NOA) will be stable. But continued funding after current grant cycles is what is the most as risk.
“I know that the American Public Health Association has filed suit against these actions as well as many other organizations,” Cook said.
At the Springfield City Commission meeting Tuesday, Jason Via, the city’s deputy director of public safety and operations, as well as Mayor Rob Rue, said the city would not speculate as to what could happen in the future with the Trump administration.
County Commissioner Melanie Wilt said she asked Ohio Gov. Mike DeWine about the federal funding issue Tuesday, since the second highest revenue source for state governments is federal grants.
“His message was don’t panic, don’t just go changing a bunch of stuff, because we’ll get it sorted out. We’ll get some clarity, I hope,” Wilt said.
Clark County Sheriff Chris Clark said his department doesn’t get a ton of federal funding, but the issue does have some impact.
“We had some federal grants that we were dealing with. We were waiting on some tax stuff that we got from Homeland Security and that’s been put on pause. … But I look for that being a short-term pause.
Clark said the federal funding the sheriff’s office gets is mostly for equipment — “things outside of our budget that enhanced our technology.”
“So, we’ll take a little bit of a hit but its not going to affect our operations in any way,” he said.
Goodwill/Easterseals has a major presence serving people with disabilities across the Miami Valley. Easterseals national CEO Kendra Davenport said Tuesday that families who depend on organizations like Easterseals for food, housing, health care, and job training “should never have to go through another day like today.”
“For them, and those who serve them, it was a day of heartache, chaos, panic, and real fear in thousands of communities all across America,” Davenport said. “And there may be more pain on the horizon with talk of cuts to Medicaid and other programs that help Americans keep their heads above water.”
State impacts
This disruption could not have come at a worse time for Ohioans, said Hannah Halbert, executive director of Policy Matters Ohio, which is a state policy research institute.
Gov. DeWine is expected to release his budget proposal next week, she said, and federal funds make up more than one-third of Ohio’s general revenue fund, according to Policy Matters Ohio.
“Many state agency budgets that pay for programs that everyday Ohioans rely on are based on federal grants to the states,” Halbert said.
Credit: AP
Credit: AP
Funding for childcare, school meals, unemployment insurance, low-income energy assistance, substance-use disorder treatment and WIC, the supplemental nutrition program for women, infants and children, could all potentially be put on hold.
The budget for Ohio’s Department of Children and Youth includes nearly $3 billion in federal funding, just over 67% of their budget, according to Policy Matters Ohio.
“Federal funding touches every part of state government, from programs that support cancer patients to unemployment compensation,” Halbert said.
Education, Medicaid impacts
“Creating chaos is not leadership,” said National Education Association President Becky Pringle, before the OMB announced it was rescinding the freeze. “The unprecedented, illegal and reckless decision by the Trump administration to freeze federal funding will hurt students, communities and public schools - especially students in lower-income communities who benefit most from federal funding.”
Families could find themselves without crucial resources if they lose access to Head Start education classes or the National School Lunch Program, which provides free or reduced-price meals to qualifying students.
The Springfield News-Sun has reached out to the Ohio Department of Medicaid to see what potential impacts this could have on the nearly 3.8 million people in Ohio who receive Medicaid benefits. A spokesperson declined to comment.
For state fiscal year 2024, Ohio Medicaid’s budget was approximately $38.8 billion. About 73% of that budget comes from federal funds, according to the Ohio Legislative Services Commission.
The Associated Press contributed to this story.
