Federal grant freeze effort causes chaos, concern

A White House memo that froze federal grants caused some panic on Whidbey.

While a White House memo that froze federal grants was rescinded after two days of widespread panic and confusion on Wednesday, it highlighted how Whidbey jurisdictions, nonprofits and schools heavily rely on federal support to provide vital services to the communities they serve.

On Monday, a memo from the Office of Management and Budget directed a blanket federal funding freeze that was meant to allow time to carefully review each spending area in the government’s budget to ensure compliance with President Donald Trump’s freshly signed executive orders aimed at reducing spending, but was blocked by a federal judge the following day until Feb. 3 to give organizations some time to challenge the decision.

The memo was rescinded the following day, though billions of dollars in funding targeted by the recent executive orders remain blocked. With more orders expected to come, there is concern that some projects and programs could be at risk.

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Following the announcement of the freeze, entities like Island County, the City of Oak Harbor, the Oak Harbor School District and the Coupeville School District were unclear about what impacts this directive would have and for how long it would be in place.

In schools, federal grants support services such as special education, Title I academic support programs, technology infrastructure and nutrition services, according to Coupeville Superintendent Shannon Leatherwood, who said that despite the fact the district has been vigilant and has maintained a contingency plan, the freeze came as a surprise.

The South Whidbey School District receives over $1 million from the federal government every year. With a fund balance of almost $5 million, Board Director Brook Willeford said the district expects to be able to serve its students for some time if the federal government decides not to support important programs and the state is unable to fill the gap.

“The majority of federal funding for schools supports students in special education, English Language Learners, and students with disabilities,” he wrote in an email. “Removing funding from these students is unconscionable, as they are some of our students who need the most assistance in getting the education they are guaranteed in our nation,” he wrote.

In Oak Harbor, the city is waiting for $5.8 million in federal funds for a series of infrastructure improvement projects, Communications Officer Magi Aguilar wrote in an email. When the freeze was announced, the city considered the possibility of having to pause, scale back or cancel projects that residents have been waiting for.

In a message sent to the community on Tuesday, Jessie Gunn from the Whidbey Community Foundation wrote that the memo did not provide clarity about how broad the order extended and what the expected long- and short-term impacts were. Because each federal agency was directed to submit information to the Office of Management and Budget by Feb. 7 regarding funding and activities through March 15, the executive director expected that meant there would be a 30- to 60-day pause on federal funding.

“Even a short pause in federal funding can have significant consequences for nonprofits and the communities they serve,” she wrote. “Essential programs addressing housing, food security, domestic violence prevention and other critical needs could face disruption, threatening the well-being of individuals and families across Whidbey Island.”

While there were no financial impacts to the Opportunity Council, Executive Director Greg Winter said the memo caused a lot of unnecessary anxiety and disruption among staff and the people served. The Opportunity Council is a nonprofit located in Oak Harbor that assists low-income families and individuals.

Winter said federal funds make up a third of the organization’s budget. In the midst of all the confusion, with no access to funding portals, the group felt the partnership with the federal government to be unreliable for the first time in the nonprofit’s 60 years of existence.

“In the longer term, we’re concerned that this action may be a symptom of greater disruption to come,” he said.

Without federal funds, the Opportunity Council would still try to serve people the best they can, looking into local partnerships with state and local government and community donations. However, the impacts of a cut in federal funding would be “tremendous,” he said.

Citizens Against Domestic Violence and Sexual Abuse had already been preparing for a dramatic budget reduction for about a year, which could cut the approximately $900,000 budget by $300,000, according to Executive Director Andrea Downs. The Victims of Crime Act, which has been providing federal funding to programs like CADA for decades, is seeing a dramatic drop in funding.

If all federal funding is cut, the county’s only domestic violence and sexual assault agency would have to close its doors, leaving vulnerable people in high-risk situations.

While community members can contribute by volunteering and making monetary donations, it wouldn’t be enough to fill the gap, she said. However, the nonprofit is looking into some grant opportunities with private philanthropies to stay afloat.

Elise Miller, executive director of Goosefoot Community Fund, said the organization is unsure if the funding received to install EV stations at the Goose will be delivered or blocked. While Goosefoot should have secured funding for a feasibility study to install solar panels on the Goose and at the Bayview Center, she doesn’t know if the funding for installation will ever be approved.

The Pacific Rim Institute, a nonprofit dedicated to habitat and biodiversity restoration, has seen a decline in community donations, according to Board Member Jim Peskuric, who added PRI would be severely impacted by program cuts targeting partners that PRI is contracted with to do restoration work.