Two Virginia cities are waiting to learn more about how a federal funding freeze might impact their operations and budgets. Federal funding usually helps local governments pay for things like education, health care and infrastructure, to name a few. Many grants are also awarded and dispersed from the federal level.
Donald Trump’s administration has made one thing clear: comply or else. It has threatened to cut off grants to sanctuary cities and block financial assistance as a form of political punishment to localities that push back on its policies. Some fear that Trump may withhold funding from localities and states that voted against him in November.
While Congress generally approves federal grants and loans, the president has signed multiple executive orders trying to bypass the checks and balances provided by the Constitution and the Impoundment Control Act, which gives the power of the purse to Congress.
An attempt to freeze trillions of dollars in federal grants and loans by a presidential executive order was blocked by multiple courts, at least temporarily.
One judge in a 30-page ruling said in part that “the funding freeze threatens the lifeline that keeps countless organizations operational, plaintiffs have met their burden of showing irreparable harm.”
Despite the court rulings, many agencies throughout the nation have reported they are still not able to access funds, and local governments are left wondering what the funding pause could mean to them.
“At this time, we have not encountered any funding issues affecting our ongoing projects,” said Josh Knight, engagement and communications manager for the City of Staunton. “However, we are closely monitoring the situation.
“The evolving nature of federal policies introduces a degree of uncertainty.”
The impact could be felt in multiple areas including meals for seniors and students, disaster relief, public safety, public health and even small business loans, according to the American Civil Liberties Union, or ACLU, who is one of the leaders in the resistance against the broad EOs by the president..
In Waynesboro, the city has received correspondence from the U.S. Department of Forestry, under the U.S. Department of Agriculture, or USDA, stating that certain grants have been frozen and work funded by those grants should be suspended, according to City Manager Mike Hamp.
However, he said, the city recently completed some work with a DOF grant but is not presently impacted by the grant.
“At this time, the federal freeze has not impacted the municipal budget, and I have not received specific information as to how the freeze might impact future budgets,” Hamp said. “We’re alert to any such communication.
“For now, it’s business as usual.”
“The Trump administration has threatened to cut off funding to the states and cities that refuse to cooperate with its federal immigration enforcement agenda. This is not only legally dubious, but also unconstitutional,” according to the ACLU.
Trump has also railed against Diversity, Equity and Inclusion programs, removing DEI from all federal government agencies. He’s also told schools and colleges they have two weeks to eliminate DEI or face repercussions.
Staunton City Mayor Michele Edwards said its DEI Commission is a “valued part of our local government.”
She said she is not aware of any discussions among other council members regarding changes to the commission’s status.
“I can only speak for myself, not for other councilors or the city, but I remain committed to the mission and values of the Diversity, Equity and Inclusion Commission in Staunton,” Edwards said. “The commission continues to meet and is working through the report’s findings and recommendations.”
AFP reached out to Augusta County Administrator Timothy Fitzgerald and Communications Manager Mia Kivlighan for the potential impact on the county but did not receive a response.
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Crystal Graham
