Federal Grant Freeze Sparks Concern Across North Coast and Beyond (UPDATED)

The Trump administration’s Office of Management and Budget issued a memorandum directing federal agencies to temporarily pause all activities related to federal financial assistance, including grants and loans. Scheduled to take effect this Tuesday evening, the directive caused widespread confusion and concern for critical programs such as Meals on Wheels, Head Start, and wildfire resistance initiatives. However, the memo clarified that the pause would not affect Medicare, Social Security benefits, or other programs providing direct assistance to individuals.

A temporary halt: Just before the freeze was set to take effect, U.S. District Judge Loren AliKhan issued an injunction temporarily blocking the freeze. According to the Washington Post, the ruling does not address the legality of the order but gives the administration and concerned organizations more time to present their arguments. Further court proceedings are scheduled for Monday.

To understand the potential local impact of this freeze, KMUD News reached out to key organizations in Humboldt County for their insights:

CalPoly Humboldt Says “Federal Grants and Aid to Continue in California”

The Wiyot Tribe’s Perspective

Michelle Vassel, Administrator of the Wiyot Tribe, shared via email that the tribe relies on federal grants for two-thirds of its budget, most of which operate on a reimbursement basis. She explained the immediate challenge:

“The Wiyot Tribe’s budget is made up of two-thirds federal grant funding. We operate these programs with the Federal government on a reimbursement base, one month in the rears. When the federal government suddenly and unexpectedly issues a temporary order pause to all activities related to obligation and disbursement of all federal financial assistance, the immediate impact to the Tribe is cash flow.

As the funds were already expended, timely reimbursement of expenses like employee salaries, public service purchases, and social programs leaves the Tribe at a loss for these costs until the freeze is lifted. According to the letter issued by the Office of the President, the agencies have until February 10th to make their determinations. If that date stands, the immediate impact to the Tribe could cause layoffs or program/service shutdowns.”

Vassel also raised concerns about the language in the memorandum, which she described as subjective:

“What is ‘woke programs’? For all we know, that could be all federal assistance to tribes. We really will not know how this impacts us until the review period is over.

If the freeze extends past February 10th, Vassel warns it could lead to layoffs or program shutdowns for the tribe.

The executive orders issued on January 20, 2025, under President Trump’s second administration are poised to significantly impact other programs and operations for the Wiyot Tribe. Among the most concerning are directives related to environmental initiatives, tribal hiring preferences, and healthcare access.

“Putting America First in International Environmental Agreements” (January 20, 2025)
This executive order may directly affect several environmental programs currently operated by the Tribe, potentially requiring the layoff of at least one staff member, the Climate Change Specialist. Additionally, this order’s evaluation of other environmental grant programs could jeopardize funding for initiatives aimed at climate adaptation and resilience.

“Ending Radical and Wasteful Government DEI Programs and Preferencing” (January 20, 2025)
Depending on how this order is interpreted, it could lead to the loss of environmental grants designed to promote environmental justice. The language could also be used to undermine tribal hiring and contractor selection preferences, which are vital for ensuring culturally relevant and locally driven work on tribal lands.

“Unleashing American Energy” (January 20, 2025)
This order presents a dual threat to the Tribe’s green energy programs. The Tribe currently holds multiple green energy grants and operates in-progress projects, all of which could be rescinded, leaving costs already incurred unreimbursed or even subject to a “clawback,” forcing the Tribe to return funds that have already been spent. Furthermore, the order revokes 13 prior executive orders, including Executive Order 11991, which improved environmental quality through the National Environmental Policy Act (NEPA). Proposed changes to CEQ’s NEPA regulations could further weaken environmental oversight, exacerbating the financial and ecological risks for the Tribe.

“Enforcing the Hyde Amendment” (January 24, 2025)
While this order does not directly impact the Tribe, it carries serious implications for the broader community, particularly those reliant on Indian Health Services (IHS). By limiting funding for abortions and revoking prior orders—such as Executive Order 140876 (Protecting Access to Reproductive Healthcare Services) and Executive Order 14079 (Securing Access to Reproductive and Other Healthcare Services)—this policy threatens access to essential healthcare for Native women and others in need of reproductive services.

Southern Humboldt Health Care District

Matt Rees of the Southern Humboldt Health Care District expressed concerns about the impact on healthcare in the region. He highlighted the district’s ongoing efforts to construct a new hospital and clinic in Garberville, which are heavily reliant on federal grants. Delays or disruptions in funding could jeopardize these critical projects and the healthcare services they aim to provide.

Updates from the White House

This morning, White House Press Secretary Karoline Leavitt, the youngest press secretary in U.S. history, addressed the media for the first time. During her briefing, Leavitt defended the administration’s federal grant pause, stating it is a temporary measure to align federal spending with President Trump’s priorities.

Leavitt emphasized that direct assistance to individuals—such as Social Security and Medicare—would remain unaffected but did not specify which organizations or programs would face cuts. The ambiguity prompted sharp questions from reporters, particularly regarding the memo’s language targeting programs linked to foreign aid, diversity, equity, and inclusion (DEI) initiatives, and environmental policies like the Green New Deal.

A Local Perspective on National Policy

As Humboldt County organizations brace for potential disruptions, concerns grow about how this pause might affect vulnerable communities. Programs like Medi-Cal, critical to low-income residents, have not yet reported disruptions, according to the Humboldt County Department of Health and Human Services. However, the long-term effects remain unclear.

KMUD News will continue to monitor this developing story and provide updates on how national policies are impacting our local community. For a deeper dive into this issue and insights from local leaders, tune in to our full audio story.

Update: 01/29/25
The Trump administration has rescinded its order that froze trillions of dollars in federal grants and loans after a federal judge blocked the directive on Tuesday. However, the administration remains committed to reviewing government programs and eliminating funding for what it describes as “woke ideologies.”

According to The New York Times, the freeze, which was issued Monday night, caused mass confusion among states, nonprofits, schools, and hospitals, many of which were uncertain if they had suddenly lost federal funding. The directive was intended to implement President Trump’s executive orders that call for a review of government spending and the removal of funding from programs deemed inconsistent with his policies.

Though the White House walked back the freeze, Press Secretary Karoline Leavitt stated that the executive orders behind it “remain in full force and effect” and will be rigorously enforced. The Office of Management and Budget (OMB) confirmed that agencies will no longer be required to halt payments while reviewing program eligibility.

The freeze had already caused disruptions, with several states—including Arizona, Washington, Colorado, Rhode Island, and New Jersey—reporting that they were temporarily locked out of federal grant payment systems. In Washington State alone, up to 32% of the state’s budget was at risk, affecting programs such as school lunches, child care, substance abuse treatment, and highway maintenance.

Democratic lawmakers, including Senator Patty Murray of Washington, called the White House’s reversal an “important victory for the American people” and accused the administration of sowing chaos through incompetence and disregard for the law.

Nonprofits that rely on federal grants also breathed a sigh of relief. Diane Yentel, CEO of the National Council of Nonprofits, stated that organizations providing services such as disaster relief, housing assistance, rape crisis support, and suicide hotlines can now continue their essential work—at least for now.

While the immediate freeze has been lifted, the Trump administration is expected to continue exploring ways to reshape federal funding in line with its priorities. Critics have drawn comparisons to Trump’s first-term travel ban, which was initially blocked in court due to its haphazard rollout and widespread confusion.