On Tuesday, Houston and Harris County were rushing to determine how President Donald Trump’s block on federal grants and help may affect them. According to local authorities, the pause could delay hundreds of millions of dollars in financing.
The operating finances and constituent services of the city and county may be significantly impacted by the halt and possible future removal of federal funding.
The White House memo specifically calls for a halt to federal funding for nonprofit organizations and international aid, and it goes further to halt initiatives like the Green New Deal, DEI, and woke gender ideology. According to a second administration memo, the suspension is not intended to have a broad, uniform effect on federal programs, but local authorities claimed the instruction is too ambiguous.
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Local governments nationwide, including in Houston, had until Tuesday at 4 p.m. (Central Time) to determine which services and programs would be affected.
This could have far-reaching effects that are beyond description. According to Christian Menefee, the attorney for Harris County, there are numerous programs that get full or partial federal funding. Harris County might freeze as a result of this.
According to Menefee, the suspension may jeopardize a $250 million award for solar panels, infrastructure projects, and certain public housing schemes. Following the death of a student at Milby High School who was hit by a train while commuting to school, the county was awarded a $2 million federal grant earlier this month to evaluate the safety of over a dozen nearby railroad crossings. According to the county attorney, that funding may also be in jeopardy.
According to Menefee, his office also received a letter and communication from the U.S. Department of Energy stating that, per Trump’s directive, beneficiaries were required to cease all operations.
Officials from the mayor’s and controller’s offices stated that the city is still in the process of figuring out how much of its future financing will be impacted. A halt or eventual removal of government funding for current programs could have a big impact, especially because the 2018 budget already has a $230 million deficit.
Although Menefee’s office presented it as a significant amount of the county budget, Harris County is still finalizing the possible financial impact.
According to Menefee, his office has discussed potential litigation partners with at least one attorney general and is deciding what legal action to pursue.At least seven state attorneys general, including those from California and New York, declared their intention to challenge Trump’s order in court. On Tuesday, the National Council of Nonprofits submitted a request for a temporary restraining order.
The original letter, which was made public by the federal Office of Management and Budget on Monday, mandated that federal programs be analyzed to make sure that funding was allocated to the administration’s top objectives and that other executive orders issued in the early days of Trump’s presidency were followed.
The deadline for reports from federal agencies about the suspended allocations is February 10. When awards could be formally canceled is unknown.
According to Menefee, the county doesn’t want to end up spending federal funds in an incorrect or unlawful manner, so it essentially pencils down federal payments.
According to Menefee, this freeze means that even funds that have already been fully committed and obligated are now blocked, and grantees’ local governments must immediately cease all further obligating or dispersing activities.
Since certain collaborations that rely on federal financing have already been suspended, nonprofits that fill up the gaps in city services may also be at risk.
For instance, grant funding from the U.S. Environmental Protection Agency that was given to the Black United Fund of Texas and the Houston Health Department in August has been stopped, according to Velika Thomas, chief financial officer for Black United Front of Texas.
Through targeted programs, the $20 million, which was obtained through the Biden administration’s Inflation Reduction Act, is intended to assist underprivileged areas in addressing environmental and climate justice challenges.
The grant was used in Houston to improve Kashmere Gardens and Greater Fifth Ward’s energy resilience. It also involves a collaboration with Houston Community College-Northeast to provide solar project training to the local population. The first class for the 22-week program is slated to start on February 10; the orientation took place on Saturday.
According to Thomas, my EPA representative informed me today that money has been put on hold. For our 40 participants, we were able to launch our program; once the financing is finished, we will simply need to start searching for further funding to put them to work.
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