President Trump's executive order to freeze most federal grants and loans has plunged Ohio and other states into uncertainty about the potential disruption of state-level programs and services. While some major programs are exempt, Democratic lawmakers fear the freeze could still impact funding for essential programs like school lunches and childcare. State officials are scrambling to understand the full implications of the order and its potential impact on Gov. DeWine's upcoming budget proposal.
President Donald Trump's executive order to freeze most federal grants and loans has plunged Ohio and other states into a state of uncertainty regarding the potential disruption or reduction of critical state-level programs and services. State officials are scrambling to understand the implications of the order, which takes effect late Tuesday, for state government, which relies on federal funding for approximately 30% of its general fund.
Although a federal judge issued a temporary pause on the freeze until Monday, the order, issued by the federal Office of Management and Budget, includes several major exceptions, such as Social Security, Medicare, Medicaid, college financial aid, and food stamps. However, Democratic lawmakers fear this temporary reprieve could still interrupt funding for essential programs like free/reduced school lunches, childcare, and assistance with heating costs for low-income Ohioans. 'Most people don't realize that a huge chunk of state budgets comes down through these programs,' said House Minority Leader Allison Russo, an Upper Arlington Democrat. Congress has already allocated a significant portion of this money, raising legal questions about the president's authority to unobligate these funds,' Russo added. But she cautioned against assuming that Ohio will receive all the money it was promised. Gov. Mike DeWine is expected to unveil his budget proposal in the coming week, followed by negotiations between lawmakers to finalize the budget bill, which the governor must sign by July 1. State Rep. Brian Stewart, a Pickaway County Republican and chairman of the House Finance Committee, stated that while it is too early to determine the precise impact of the Trump administration's order on state finances, it is unlikely to affect core programs such as Medicaid and SNAP benefits. 'A closer review of federal spending is long overdue,' said Stewart. 'And if part of getting that done is for 72 hours in the week of January 28 you just push pause for a bit, I think that’s certainly not the end of the world.' When asked about the 72-hour timeframe, considering the freeze's duration, he clarified that the Trump administration plans to provide further guidance. 'Today, on day one, it does not appear to me like this is going to have an enormous impact on how we do our budget,' he asserted. Kirtland Republican state Sen. Jerry Cirino, who chairs the Senate’s Finance Committee, is adopting a wait-and-see approach. 'I’d still like to gather more information before speaking about how it might impact our process,' he stated. The White House has instructed federal agencies to review whether their spending aligns with a series of executive orders, targeting transgender rights and diversity, equity, and inclusion efforts. Federal agencies are required to submit their findings by February 10, but Russo believes this deadline is unrealistic. 'An agency going through and reviewing this is not a small task,' Russo noted. Furthermore, lawsuits challenging the order's constitutionality could further delay final funding decisions. 'States have to pass balanced budgets, and in order to do that, we have to have some predictability for what dollars are coming in,' Russo emphasized. 'It is extremely difficult to plan for spending when you don’t know the state of those programs.' Dan Tierney, a spokesman for Gov. Mike DeWine’s office, declined to comment on the potential impact of the order on DeWine’s upcoming budget proposal, stating that the White House’s order only applies to federal agencies. Representatives from the state's Department of Health, Department of Education and Workforce, and Office of Management and Budget provided similar responses, indicating they had no immediate comment. Tierney asserted that the order itself was 'not very broad,' but State Rep. Bride Rose Sweeney of Westlake, the highest-ranking Democrat on the House Finance Committee, offered a contrasting perspective. After consultations with state officials, Sweeney understood that the order freezes hundreds of millions of dollars in unspent federal coronavirus aid, including a portion of the $100 million allocated to the state for expanding broadband access. She also highlighted the potential impact on the Low Income Home Energy Assistance Program, a federal program that helps low-income Ohioans with their heating and cooling costs. While Sweeney acknowledged that officials are still working to determine the precise programs affected, she expressed concern about the potential ramifications, given that 30% of the state's budget is funded through federal grants. 'The ramifications are pretty terrifying,' she stated
Federal Spending Trump Administration Ohio Budget State Programs Democrats Republicans Uncertainty Coronavirus Aid Broadband Access Low Income Home Energy Assistance Medicaid SNAP Benefits
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