UPDATE: On Jan. 29, the Office of Management and Budget released a memo saying it is rescinding the memo that halted all federal grants and loans.
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TULSA, Okla. — On Jan. 28, a federal judge temporarily paused the Trump administration’s order to halt all federal grants mere minutes before it would have begun.
Monday night, the Office of Management and Budget put out a two-page memo, telling agencies to temporarily freeze all grants, loans, and foreign aid. Trillions of dollars would have hung in the balance, likely impacting Oklahomans who rely on local organizations for things like rental assistance or a basic dinner.
WATCH: 2 News Oklahoma’s Douglas Braff listened to local nonprofits about the potential impact:
Specifically saying all financial assistance for “nongovernmental organizations, DEI, woke gender ideology, and the green New Deal.”
The memo gave agencies until Feb. 10 to review how best to spend their tax dollars.
Some exceptions included Medicare and Social Security payments, but not much more than that. As multiple nonprofit leaders told 2 News, this led to chaos, confusion, and uncertainty this morning.
“The uncertainty is no one really knows exactly what the scope of this memo is, how long it will take, and it's just the first step, right?” said Chris Bernard, CEO and president of Hunger Free Oklahoma.
He added: “I know one of my grants will be frozen. I know that the government agency has to submit that grant to OMB by February 10th, and then I know it will be reviewed. I don't know what the standards of that review will be. I don't know whether, you know it, we will get legal protection in the meantime by some lawsuit filed. So, any dollar I commit to continue that program, I don't know if I will get back from the federal government.”
Local nonprofits, like Hunger Free Oklahoma, said they get millions from agencies like the U.S. Department of Agriculture, directly helping 70,000 to 80,000 people facing food insecurity monthly.
“While some of us are in a position that we have other dollars, and we can risk that for a while, others are not,” said Bernard. “At the same time, it's uncertainty for people who rely on these programs, and that's a much bigger crisis.”
On Tuesday afternoon, the OMB clarified its words, saying, “Any program that provides direct benefits to individuals is not subject to the pause.”
That includes SNAP benefits, funds for farmers and small businesses, and rental assistance.
The CEO of Housing Solutions for Tulsa said they’re somewhat relieved with the clarification but remain cautious about future federal action.
“It's only really been a few hours since we've seen the memo, and we're still assessing that,” said Mark Smith told 2 News on Tuesday afternoon. “But we're doing a lot of work to make sure that this is minimally disruptive to the people we serve.”
While a judge placed the freeze on hold, the freeze could potentially return pending a hearing on Feb. 3.
Tulsa Mayor Monroe Nichols released a statement:
"We are closely monitoring announcements from the White House regarding the federal funding freeze. Our City’s leadership is committed to maintaining transparency and minimizing any future disruptions to ongoing work for the community. While this initial announcement brings with it a lot of uncertainty, there is no known impact on our operations or City employees at this time. We’ll be sure to provide updates if and when we have more clarity.”
Various tribal nations also commented on the now-halted grant freeze.
"Today, the Cherokee Nation is evaluating its programs for any potential impacts related to the President's memorandum pausing federal grants and loans," said Cherokee Nation Chief of Staff Dr. Corey Bunch.
"Many of our departments, including our health facilities and housing programs are generally funded and operating as normal, and we are continuing to closely follow any developments that may impact our Cherokee Nation citizens and services," Bunch added.
The Muscogee (Creek) Nation's Principal Chief David Hill said the MCN is "closely monitoring" developments.
"Our team is actively communicating with all relevant federal partners and counterparts to better understand the administration's process and to advocate for the best interests of Muscogee Nation citizens," Hill said in part.
A hearing about this freeze is planned for Feb. 3rd.
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