Austin scrambles to assess local impact of federal grant freeze

President Donald Trump issued a directive on Monday ordering a sweeping freeze on federal grants, including money to state and local governments. This action caused an immediate uproar, as well as lawsuits to put the order on hold. A federal judge stayed the order just before it was slated to take effect but legal wrangling over what a president may and may not do could continue for months.

The Washington Post and The Guardian were among those reporting that a group of nonprofits, which are largely dependent on grants for their funding, filed suit in federal court in Washington, D.C. U.S. District Judge Loren AliKhan ordered an administrative stay on the Trump order until Feb. 3. The freeze would put a hold on numerous programs designed to help children, the elderly and students. It also impacted grants to cities, counties and universities, including the University of Texas and Austin.

On Tuesday afternoon, Austin City Manager T.C. Broadnax said the city was aware of the federal memo and that staff was currently assessing its impact.

“We are compiling a total amount of grant funding for all City of Austin programs that could be affected,” he said in a statement.

“Federal grant funds and the services they help us provide are vitally important to all communities. They support things like housing needs, nutrition programs for children, safe streets and roads, and basic medical care for low-income seniors. This is a critical issue precisely because it impacts so many basic services,” he continued. “We will continue monitoring this evolving situation and make necessary adjustments as we gain more insight on the specific impacts.”

Council Member Ryan Alter told the Austin Monitor via email, “Freezing federal grants does nothing but hurt our community. It doesn’t hurt the City, it hurts the people we serve by denying them the benefits of the tax dollars they send to the federal government. This is money for parks, public safety, the environment, public health, housing, and more. Taxpayers deserve a government that works for them, not one that prioritizes politics over people.”

Council Member Marc Duchen also commented. “Setting aside the questionable intent behind freezing all federal grants, the bigger issue is the way the administration handled this. I saw no strategic plan or public input; instead the administration unleashed more chaos and confusion across the country. It’s natural to want to review how our public dollars are spent, but how we do it is hugely important if we want to be effective and restore public trust. This looks more like a half-baked publicity stunt than a well-executed plan. I truly hope this isn’t a prelude to the next 4 years.”

Council Member Zo Qadri told the Monitor, “While the new administration insists on governing via chaos and risking the lives and livelihoods of countless Americans at home, we will continue to focus on the things we can control – delivering quality services and building towards an Austin that is welcoming, safe, and equitable for all.”

Two local Congress members also issued strongly worded statements in opposition to the cessation of federal grant money. Longtime U.S. Rep. Lloyd Doggett said in a news release: “Trump said he’d be a dictator on Day One. We are now witnessing far more than one day of damning power grabs.

“He has hit our community directly with an authoritarian decree abruptly halting most all federal loans, grants, and aid impairing work at our schools and universities, community health centers, a large number of vital social service nonprofits, and local governments. As a result, I continue to receive calls of concern from a wide range of groups that have long done much good in Austin.

“Last week, Trump also halted all grants from the National Institutes of Health of which the University of Texas is a major recipient. This interferes with vital health research concerning dread diseases and potential pandemics.

“As a member of the House Budget and Ways and Means Committees, I will be at the center of pushing back on what I believe are unconstitutional moves.”

U.S. Rep. Greg Casar, of Austin’s District 35, said in a news release, “Trump is breaking the law and starving the most basic programs of all of their funding. Trump is illegally defunding Pre-K classrooms, firefighter salaries, meals for hungry seniors, and countless other critical services.”

Casar, chair of the Congressional Progressive Caucus, added, “The damage Trump’s illegal actions today will inflict on our communities – red and blue – cannot be overstated. Trump, unconstitutionally, is taking food away from low-income seniors and newborn babies so that he can enrich his corporate backers. Trump, illegally, is freezing infrastructure projects and throwing construction workers off the job so that he can give his billionaire buddies a tax break. Trump is ignoring the Constitution and slashing the funds that pay for firefighter and police salaries, and his excuse is ‘DEI’ and ‘wokeness.’

“Trump wants to push us into an era of lawless corruption, and it’s up to Democrats and all Americans of good conscience to stop him before he goes any further,” he said.

Casar also noted that “Trump’s funding decision today heavily damages Republican-run states. According to the Pew Charitable Trust, nine states receive over 45 percent of their overall budgets from the federal government: Louisiana, Alaska, Arizona, South Dakota, Wyoming, Missouri, Kentucky, West Virginia, and Mississippi.”

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