CLEVELAND, Ohio — Before a federal judge temporarily blocked a push by President Donald Trump to halt federal grants and loans, the executive order was creating confusion nationwide and in Northeast Ohio.
This week, a two-page memo issued by the Office of Management and Budget (OMB) alerted agencies about the order. The pause was scheduled to take effect at 5 p.m. Tuesday and would have scrutinized whether programs receiving federal funding are aligned with the president’s priorities.
“Other people who’ve been doing this much longer than me - we’ve never seen this before. So we don’t know. We’re literally all walking around going - ‘What does it mean?’” said Dr. Jacklyn Chisholm, president and CEO of Step Forward.
Chisholm estimated about 97% of the community action agency’s funding comes from federal dollars. Some of its services, including its Home Energy Assistance Program (HEAP) and early childhood program Head Start, are completely federally funded.
She said Step Forward and other organizations had been parsing the language in the OMB memo and executive order.
The pause excluded programs, like Medicare and Social Security benefits, that provide direct funding to Americans.
In a briefing Tuesday afternoon, White House Press Secretary Karoline Leavitt explained the order was about eliminating wasteful spending. The administration planned to examine programs receiving federal dollars and trim progressive initiatives that don’t align with the president’s agenda.
“The reason for this is to ensure that every penny that is going out the door is not conflicting with the executive orders and actions that the president has taken,” Leavitt said.
Step Forward and other agencies said it wasn’t immediately clear what could qualify under the order.
“At the end of the day, we have to go back to the mission of the organization and make sure we’re providing the services that meet the mission of the organization and the clients that we serve,” Chisholm said.
In another OMB memo issued Tuesday, the administration clarified programs like Head Start, as well as Pell grants and loans for small businesses and farmers, would not be subject to the pause.
However, Step Forward still planned to seek clarity on its other services.
Likewise, other social service organizations were discussing the implications. The Boys and Girls Club of Northeast Ohio said its state and federal partners were reviewing the order.
CEO Allen Smith said about 60% of the organization’s costs are government-funded, but the majority of that money comes from the state level.
News 5 previously reported BGCNEO’s financial challenges tied to schools and the loss of pandemic-era funding. In the fall, the organization shut down dozens of its after-school clubs to cut costs.
Smith said community support has since helped bridge any remaining financial gaps, and he’s hopeful a pause on federal funding would have minimal impact.
“It doesn’t matter what side of the aisle you’re on, we’ve seen support from both sides. And we believe that people agree that the types of services and programs we provide are important,” Smith said.
The White House originally gave agencies until Feb. 10 to plead their case about keeping federal funding. Step Forward said unless it runs out of money or is directed otherwise, it plans to continue operating its services as usual.
“Our mission hasn’t changed. The work hasn’t changed. We’ll continue doing the work until we can’t,” Chisholm said.
If it moves forward, the order could potentially put trillions of federal dollars under review. The administration said it also planned to review grants that have already been issued but not yet spent.
The ruling blocking the order came minutes before the funding pause was scheduled to go into effect. It lasts until Monday afternoon.
