Update: Trump spending freeze sows confusion for Tri-Cities agencies, schools, hospitals
Update Jan. 29, 2025:
On Wednesday morning the White House Office of Management and Budget rescinded its memo ordering the freeze on federal loans and grants it announced late Monday. The White House later said the freeze is still in effect despite rescinding the memo.
--------------------------
Tri-Cities area government projects and agencies that depend on federal funding were left confused and scrambling to learn details as a Tuesday 2 p.m. Pacific Time deadline approached for a Trump administration freeze to federal loans and grants.
The freeze was blocked minutes before it took effect, but only temporarily.
The Monday night announcement of the freeze led to “complete chaos” at several Head Start programs, with some preparing to close their doors on Wednesday, said Joel Ryan, executive director of the Washington State Association of Head Start and the Early Childhood Education and Assistance Program.
It and some health programs received a clarification from the White House Office of Management and Budget hours before the freeze was set to take effect, saying that they would not be included in the freeze.
At that time, some payment portals, including for Head Start, community health clinics and Medicaid, were out of service for several hours.
The Washington State Hospital Association said during a noon news media briefing on hospital finances that it had just learned that Medicaid and Medicare would not be impacted by the freeze.
However, Washington state hospitals receive other federal grants, as does the hospital association, said association Chief Executive Officer Cassie Sauer.
An Office of Management and Budget memo released mid-day said that Social Security and food stamp programs also would continue without pause, along with money for small businesses, farmers, student Pell grants and rental assistance.
The White House also distributed a press release about 4 p.m. Tuesday saying that the Office of Management and Budget had made clear that federal assistance programs were excluded from the freeze.
It said it only applied to “unnecessary spending” such as “funding nongovernmental organizations that undermine the national interest.”
A pause in some federal spending was needed to ensure that federal programs were being executed in accordance with President Trump’s policies, it said.
That included the Department of Energy, which has the Hanford nuclear site adjacent to the Tri-Cities with $3 billion in annual federal spending on environmental cleanup, and Pacific Northwest National Laboratory in Richland with $1.6 billion in spending annually, much of it from the federal government.
“The Department of Energy is conducting a department-wide review, which includes funding such as grants and loans, to ensure all activities are consistent with President Trump’s executive orders and priorities,” DOE Press Secretary Ben Dietderich said in a statement to the Tri-City Herald Tuesday night.
All programs that could be impacted by the federal order were given a reprieve as the freeze was temporarily blocked by a District of Columbia federal judge Tuesday afternoon just before it was set to take effect. The reprieve lasts until Monday afternoon, according to The Associated Press.
Washington joins lawsuit
New Washington state Attorney General Nick Brown announced Tuesday afternoon that Washington had joined 21 other states suing the Trump administration over the financial freeze in federal court in Rhode Island.
The direction issued Monday by the Office of Management and Budget could impact childcare and special education grants, highway planning and construction dollars, energy cost assistance rebates, substance abuse treatment and nursing care for veterans, among other programs, according to the Office of Attorney General.
The administration’s memo on the freeze does not explain any legal authority for the order because there is none, the Office of Attorney General said in a news release.
“The White House justifies this damaging move with culture war alarmism, but in reality they’re robbing governments and service providers of funds that keep people safe and serve urgent needs in all of our communities,” Brown said in a statement.
Washington Gov. Bob Ferguson said that he was confident the courts would find that the Trump administration was exceeding its authority.
“ ... President Trump’s refusal or inability to advance his priorities in a lawful and constitutional manner is creating needless and cruel chaos,” he said.
Sen. Murray calls freeze illegal
Sen. Patty Murray, D-Wash., called the freeze a brazen and illegal move after the Office of Management and Budget announcement late Monday.
It would block funding passed into law by Republicans and Democrats alike, she said.
The Trump administration could not pretend that it had no idea of the chaos its announcement would cause, she said Tuesday.
“Entire budgets and payrolls across the country are carefully hinging on these resources—we’re talking about small towns, cities, rural America, school districts, universities, and much more.,” she said.
“And look—saying, ‘just kidding’ not even 24 hours later—is not a solution,” she said.
The Trump administration’s action was unprecedented, she said.
“We could see a screeching halt to resources for child care, housing, police officers, opioid addiction treatment, rebuilding roads and bridges and even disaster relief efforts,” she said Tuesday morning.
A document circulating among some Senate Democrats laid out a long list of additional programs that might be affected, including federal food inspections, research grants, school lunch programs, community health centers and K-12 special education programs.
Murray and other Democrats called for a postponement of a Senate Budget Committee vote scheduled Thursday on Trumps nomination to lead the Office of Management and Budget, Russell Vought.
Tri-City schools
The Washington school superintendent’s office said Trump’s pause will not impact federal funding for poor and disabled students.
“The U.S. Department of Education has shared with our federal association that the ‘pause’ will not impact Title I, IDEA, or other formula grants; however, the Department has not yet officially sent this guidance to states,” said Washington OSPI Chief Communications Officer Katy Payne.
But the agency, which oversees financial apportionment for Washington’s 295 public school district, says there are “no reserves” within the Legislature or OSPI to cover gaps in federal funds.
An extended break in federal grants would impact the Tri-Cities’ most vulnerable and disadvantaged students.
Richland, Kennewick and Pasco school districts receive more than $73 million annually for special education, vocational education, assistance for low-income students, lunch and breakfast programs, summer food programs, migrant education and students struggling with English language learning.
Public schools in the Tri-Cities serve about 53,000 students from kindergarten through 12th grade.
The U.S. Department of Education clarified late Tuesday that student loans, Pell Grants for low-income students and other federal tuition assistance for college students wouldn’t be interrupted in the freeze.
National and state Head Start and ECEAP leaders were also confused Tuesday by the funding pause, with the Office of Management and Budget later clarifying that the agencies would not be included.
Ryan said those programs were ready to shut their doors on Wednesday and were worried about making payroll without the federal funds.
Benton Franklin Head Start in Richland provides local early learning services for children birth to 5 years old. They serve about 470 children and provide more than 85,000 meals a year.
“President Trump’s half-day shutdown of Head Start was irresponsible, illegal and created unnecessary chaos,” Ryan said in a statement.
This story was originally published January 28, 2025 at 5:52 PM.