Access Living friends and allies,
We’d like to share another update on the federal funding crisis. Yesterday, it was widely reported that the Trump administration had lifted the federal funding freeze, in part due to legal action to stop it. However, there has been confusion about the difference between President Trump’s original Executive Order calling for a pause on federal grants, and the federal Office of Management and Budget (OMB) memo issued on Monday night. The OMB memo caused much distress, given that on Tuesday states were also locked out of grant portals, including for Medicaid.
On Tuesday, the OMB memo was reversed, and it was reported that the portals re-opened. However, the President’s Executive Order calling a halt to federal grant activity still stands, and affects hundreds of important grants, including grants serving people with disabilities. Those grants are on pause pending review for alignment with the priorities of the Trump administration.
What is NOT impacted by the federal grant funding? Any direct aid to individuals. That includes Pell grants, Medicaid and Medicaid payments, SNAP, Social Security and any form of direct payment to individual people. These payments will proceed as usual.
However, there is still potentially significant damage in the making. Many nonprofits do not have substantial reserve funds to make up for pauses in federal funding. This means they may not be able to make payroll after one or two cycles, and may have to lay people off or close, even if they are doing important work like serving homeless people, people with disabilities, sick people, and people experiencing domestic violence. No end time has yet been announced for the funding pause, and may vary across federal agencies as they complete internal reviews.
An explainer document is being updated as new developments take place. The American Association of People with Disabilities has been continuously updating this document to help the disability community understand what is at stake. The document also has links to help people take action.
Access Living continues to monitor this crisis and we are actively working with community partners to minimize any potential harm to our communities. We know that lives are at stake. Be prepared for the likelihood that the crisis will continue to shift in unexpected ways. Please share this update with concerned fellow community members. Thank you for your advocacy, as always.