In the News, Press Releases

LOUISVILLE, Ky. (WDRB) — Late Tuesday, a federal judge temporarily blocked a push from President Donald Trump to pause federal funding, such as loans and grants, just minutes before it was scheduled to take effect.

The judge’s blocking came after a day of confusion for the U.S. government and uncertainty among states, schools and organizations that rely on funding from the government.

The freeze on the funding raised concerns among agencies and programs like Medicare, Social Security and more. Trump’s administration said those programs that provide direct assistance to Americans would not be effected, including student loans and food stamps.

Local organizations spoke about what impacts they’re already seeing and plans they’re making in the interim.

Jefferson County Public Schools said in a statement it doesn’t know how the order might impact the district.

“Like other entities, we are reviewing the action and awaiting guidance from the federal government,” the statement continued.

Louisville Mayor Craig Greenberg mentioned funding for Louisville Metro Housing Authority, which is 90% funded by federal dollars.

That funding provides public housing for the elderly, disabled, and low-income families through programs like Section 8.

LMHA’s director said Tuesday she’s making contingency plans as it prepares to outlast a possible funding freeze.

“We are making sure we can keep the lights on, that we can keep making payroll, that we can keep paying landlords, so people shouldn’t be panicked,” LMHA Director Elizabeth Strojan said. “So I know there’s a lot of uncertainty today, anyone watching the news is asking what’s happening, are my programs impacted or not, but people with LMHA assistance shouldn’t be panicked right now.”

WDRB has not yet received a response from Kentucky’s Medicaid office about what they are dealing with in the aftermath.

The confusion had many Louisville area nonprofits concerned about funding and their futures.

The Center for Women and Families took to social media asking people to contact their members of Congress.

The center provides emergency assistance like housing for those escaping domestic or sexual abuse. Leaders said pausing federal funding threatens their work helping survivors.

Late Tuesday afternoon, clarification that pre-K and child care money would be safe provided some relief for Head Start programs fearing their federal dollars would be lost. But as some nonprofits tried to submit claims for reimbursement, they found the federal portal to do so was not working.

The chief financial officer for Family and Children’s Place said it took all day for them to finally submit about a $1 million funding request. The request will allow them to keep four Head Start centers that the nonprofit runs operational into March, directly impacting 300 kids and 40 workers.

“The common theme in all of it is confusion and anxiety and not knowing if their program is stable and if their program is stable, how reliable they will be, (will they be) able to request and receive the funds that they need and honestly, what the next step might be,” Adam Faris, CFO for Family and Children’s Place, said.

Local nonprofits are propped up by federal dollars across many sectors, including housing, health, education, child care and workforce programs, among others. Millions of dollars flow in to Kentuckiana every month, impacting a number of people.

Click here to read the article from WDRB.