UPDATED: Federal funding freeze rescinded

Island organizations are eyeing the Trump administration’s next moves. 

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White House press secretary Karoline Leavitt defended the Trump Administration's freeze on federal loans and grants during a press conference on Tuesday. —Courtesy White House

Updated Jan. 29

A threatened freeze on federal loans and grants proposed by the Trump administration wreaked two days of havoc across Island institutions — some that provide essential services — and left many scrambling to understand the possible impacts.

Wednesday afternoon, the New York Times broke the news that Trump would rescind his order to freeze trillions of dollars in funding, after a federal court had moved to pause the attempt, with constitutional experts pointing out that the executive branch cannot override Congress’ role in controlling the purse strings.

Even as Trump rescinded the order, many on the Island and around the country remained concerned about a new era of chaos and confusion, as the Trump administration moves with haste to reshape the federal government. 

Leaders at the Aquinnah Wampanoag Tribe worried about grant funding they rely on for programming, while Island nonprofits, the hospital, and airport officials were concerned about ongoing projects. 

 A Monday memo from Matthew J. Vaeth, acting director of the Office of Management and Budget, ordered all federal agencies to halt disbursement of financial aid and obligations. The agencies were ordered to review, by Feb. 10, which of their programs were “implicated” by President Donald Trump’s executive orders. 

“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,” the memo reads.

The freeze was scheduled to go into effect on Tuesday at 5 pm, but federal Judge Loren AliKhan in Washington, D.C., temporarily paused the order to give courts time to evaluate the case. 

The suit to block the order was filed by multiple plaintiffs, including the National Council of Nonprofits and the American Public Health Association. A coalition of attorney generals from 22 states, including Massachusetts, are also suing Trump over the order. 

Prior to Wednesday’s news of the administration pulling the freeze, on the Island, the Wampanoag Tribe of Gay Head (Aquinnah) chairwoman, Cheryl Andrews-Maltais, said the tribe already received its base annual funding. The tribe anticipated they could weather through the end of the order, if it had taken effect; but she was eyeing how the rest of the federal budget would play out. 

The tribe’s programs and services are “totally reliant” on annual federal funding and grants, according to Andrews-Maltais. She said the tribe’s various activities — including environmental, elders’, children’s, justice, and social services programming — could have been impacted, depending on how the order played out. 

“The memo and other executive orders are very disturbing and troubling to us, and all of Indian Country,” Andrews-Maltais told The Times. 

A freeze on federal assistance would have also had countywide repercussions. A Wednesday morning press release from Dukes County stated the county provides and supports various social programs, including federal food programs like SNAP and WIC. 

“This freeze may affect more services and people on the islands than many may realize,” Dukes County Manager Martina Thornton said in a statement Wednesday morning. “Federal funds are critical in providing support to the more vulnerable members of our community, whether related to housing, food security, or healthcare.”

Schools on Martha’s Vineyard were also determining how the order could impact their programs. 

Mark Friedman, Martha’s Vineyard Public Schools business administrator, told The Times there were updates multiple times a day from statewide education organizations regarding the order, advising them how to prepare. 

Officials from the superintendent’s office say they already received funding for the current fiscal year through the state Department of Elementary and Secondary Education, so they were less worried about the current fiscal year, and more concerned about next year. 

“Since the fall, we’ve been kind of bracing for some of these things that have happened through our president’s executive orders,” Martha’s Vineyard Schools Superintendent Richie Smith said. 

Federal funding comes to the Vineyard schools for a variety of services, including grants for English language learner programs and special education grants through the Individuals with Disabilities Education Act. However, Smith said there are also concerns that “competitive grants” — funding schools and nonprofits apply to receive — may not be as “flush” in the future. 

Still, the Vineyard schools likely wouldn’t have been as heavily impacted as some districts if there had been a cut in federal assistance. Friedman said school districts on the Island do not qualify for as much federal assistance, so there would be less of a hit. 

“Because of our financial demographics, our property values tend to be better than some parts of the state,” Friedman said. 

Meanwhile, transportation services on the Island were also feeling a pinch.

Geoff Freeman, director of Martha’s Vineyard Airport, said funding from the Federal Aviation Administration (FAA) usually covers 90 percent of the airport’s airside projects, like equipment purchases and rehabilitating runways. Freeman was especially concerned about the $40 million airport terminal renovation, which was kick-started with a $15 million FAA grant the airport received in October, but they were proceeding with the project as planned. 

The Steamship Authority communications Sean Driscoll said the ferry line was also keeping an eye on the order, and how it might impact some capital or maintenance expenses.

“While there are no immediate effects of this order on the Steamship Authority, we remain deeply concerned about the situation, and are working with our local, state, and federal representatives to determine the status of previously obligated federal funds for reimbursable expenses,” Driscoll told The Times. 

Some nonprofits could have also taken a hit. In a mass email, the Martha’s Vineyard Nonprofit Collaborative told organizations dependent on federal funding to closely monitor the situation, and that the order “could significantly impact a wide range of programs, including those managed by nonprofit organizations.” There was particular concern for organizations “focused on health and research initiatives, providing essential services, or educational programs.” 

Martha’s Vineyard Hospital has been jabbed at before for receiving federal funding. Last year, Rand Paul, a Republican Senator from Kentucky, criticized more than $1 million in federal funding the hospital had received as “shameful.” Claire Seguin, Martha’s Vineyard Hospital chief nurse and vice president of operations, said in a statement they were “assessing the situation, and determining if there will be any impact from the recently announced federal actions.”