The Trump administration rescinded a memorandum that had directed a freeze on federal financial support for a range of programs after questions circulated over what could be affected and for how long.
The administration, though, said that executive orders that were the basis of the freeze remain in effect.
“In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage,” said White House press secretary Karoline Leavitt on Wednesday.
“The executive orders issued by the president on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments. This action should effectively end the court case and allow the government to focus on enforcing the president’s orders on controlling federal spending.”
The original directive had widespread implications over hundreds of millions of dollars in grants to states.
Multiple states reported that they had lost access to Medicaid after the Trump administration directed the freeze, but West Virginia officials say the state’s Medicaid portal is functioning today. Medicaid is a joint federal and state program that gives health coverage to some people with limited income and resources.
Head Start, the early childhood education program, also receives funds from the Administration for Children and Families, U.S. Department of Health and Human Services, that then flow to states. Head Start, nationally, was also experiencing blocked access to funding portals on Tuesday.
“The West Virginia Department of Human Services is aware of the recent federal funding freeze and continues monitoring potential impacts on our programs. At this time, our financial processes are operational,” Angel Hightower, a communications specialist with the state agency, said today.
This week’s confusion was set off by a memorandum by White House Office of Management and Budget acting director Matthew Vaeth. It said federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance.”
The policy was set to take effect at 5 p.m. Tuesday. The memorandum that kicked off the concern said federal spending should reflect the priorities of the incoming Trump administration:
“Financial assistance should be dedicated to advancing Administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending ‘wokeness’ and the weaponization of government, promoting efficiency in government, and Making America Healthy Again.
“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve.”
Entities that receive federal loans and grants were trying to interpret the effects of the directive.
The West Virginia Nonprofit Association described being “deeply troubled” by the federal funding pause, saying it “raises significant concerns about its potential impact on the entire nonprofit sector and the communities we serve.”
The organizations within the statewide association rely heavily on federal funding to provide essential services such as workforce development, housing assistance, healthcare, education, and food security.
“Even a temporary disruption in funding could have far-reaching consequences, jeopardizing critical programs and affecting the well-being of our state’s most critical communities,” said Rosemary Ketchum, executive director of the West Virginia Nonprofit Association.
Nationally, the senior nutrition program Meals on Wheels issued a statement describing “uncertainty and fear” with providers across the country.
Meals on Wheels President Ellie Hollander noted that funding flows from the Agency on Aging within the Administration for Community Living to State Units on Aging and through Area Agencies on Aging to roughly 5,000 community-based senior nutrition providers.
So, while the federal memo stated the funding pause excludes assistance “provided directly to individuals,” Meals on Wheels funding does not go directly to the individual recipient. “That’s where the confusion lies,” Hollander said.
Effects of the freeze would be significant for higher education, although federal support for individual students was not anticipated to be affected.
More likely effects would be on grants affecting research conducted through higher education institutions. Also affected could be student support programs and discretionary grants for programs ranging from foreign language instruction to Historically Black Colleges and Universities.
“We understand that the pause does not apply to Title IV aid to students, including Pell and direct loans. Beyond that, we are awaiting guidance from federal agencies,” said Jessica Tice, senior director of communications for the West Virginia Higher Education Policy Commission.
At West Virginia University, “We are currently reviewing the latest federal guidance and having conversations with members of our campus community to gain a better understanding of their potential scope and impact,” said April Kaull, executive director of communications.
“We are also in close contact with federal agencies and other stakeholders so that we may identify next steps.”
Healthcare providers are also weighing potential effects for medical researchers and clinicians, for example. Or, if Medicaid payments wind up being affected, that would certainly affect the bottom line of hospitals and local clinics.
“We are trying to get more information and the impact on West Virginia,” said Jim Kaufman, president of the West Virginia Hospital Association. “More to come.”