With federal funding freeze lifted, everything proved ‘to be just fine’

Nonprofit organizations and government agencies at local, state and federal levels who depend on federal funding surely breathed a collective sigh of relief Wednesday afternoon when President Trump’s decree to freeze federal funding of grants and loans was rescinded, ending, at least for the moment, the state of flux and confusion for millions of Americans.

Although the Eastern Oklahoma Development District (EODD) and, by extension, the Sallisaw Nutrition Center could have been left without financial resources in the face of funding freeze, EODD Executive Director Scott Harding had already chosen to remain optimistic, taking the approach that “we’re going to be just fine.”

Turns out Harding may not only have been right, but prophetic also.

“Honestly, certainly it’s on our radar, and if you start talking about worst-case scenarios, then those don’t look great,” Harding said Wednesday morning prior to the about-face by the Office of Management and Budget. “But I don’t think we’re there yet. And I honestly think we’re going to be just fine. We haven’t gotten any indication about reduction in funding. We have no plans right now to change any of the things that we’re doing. We’re just kind of continuing on business as usual, because a lot of what we’re hearing, I think, is just speculation.”

In hindsight, Harding may have been one of the few voices of reason.

The pause in funding was set to take effect Tuesday. But a U.S. District Judge temporarily blocked the plan until Monday, which ensured that federal agencies, states and other organizations that receive money from the federal government would continue to receive funds. The injunction, Harding explained, was to provide an opportunity for the court to “hear arguments for and against it.”

Harding had said the EODD was like most other agencies, eager for clarity as to any impact in personnel and services due to the funding pause. Because the edict was still in its infancy and most were confused as to the ramifications, EODD was in a holding pattern as the agency continued “doing what we’ve been doing.”

Unable to foresee the freeze being rescinded within two hours of talking with Your TIMES, Harding acknowledged that “a lot of people are concerned, and we’ve had some calls and things like that,” but confirmed “we haven’t reduced any of our services. We haven’t been told that we’re going to see any reductions at all.”

For Sequoyah County, the EODD administrative umbrella encompasses the Sallisaw Nutrition Center, which, through its nutrition provider, serves lunch for seniors Monday through Friday, and delivers meals to those who are homebound.

“All the Title 3 sites, barring something unrelated, are still going to operate. This isn’t going to have any effect right now on services or anything like that,” he assured.

In the end, Harding’s optimism that “I think we’re going to be fine” proved to be the case, at least for now.

The catalyst

For the past two weeks, the new administration has sought to make broad changes to the federal workforce. The memo announcing the funding freeze followed dozens of executive actions signed by President Trump during the past week. In addition to calls for reviews of various programs and funding, Trump has explicitly targeted all DEI programs, and is pushing for more government efficiency and less spending by the federal government.

The text of the memo issued Monday was farreaching, and any followup guidance had been vague. A fact sheet issued by the White House on Tuesday specified that “any program that provides direct benefits to Americans” — like Social Security, Medicare and food stamps — “is explicitly excluded.” Also exempt from the freeze were funds for small businesses, farmers, Pell grants, Head Start, rental assistance “and other similar programs.”

Federal dollars recipients whose status was murky following the funding freeze announcement included the Meals on Wheels programs, which rely on federal grants and serve more than 2 million senior citizens annually, and Tribal Nations.

“The United States has a unique government-to-government obligation to Tribal Nations,” Native American Rights Fund director John Echohawk said. “Because of this unique relationship, Tribal Nations and Native people are especially and disproportionately affected by any federal actions.”

Critics called the demand for the funding freeze unlawful because Congress had already approved the money to be spent, contrary to what the administration claimed.

“There were a couple of memos that came from the federal level — one that kind of laid it out, and then a second one [where] they sort of clarified …,” Harding said prior to the freeze being rescinded. “At first it was like it’s going to focus on everything. But then I think they tried to come back and clarify that there are certain services it wasn’t going to affect — like direct assistance to individuals.”

Harding said the initial list was extensive, and “primarily focused on those that deal with some of the President’s Executive Orders regarding green energy, some of the environmental programs, Diversity Equality and Inclusion, DEI programs, as well as some stuff kind of related to some non-governmental organizations.”

He said it was his understanding that the administration wanted agencies to review a checklist and determine if any items applied to the work being pursued or funding being received by the agencies.

Potential impact

The OMB rescinding its original memo alleviates, at least for the present, concerns over the impact a loss of federal funding would have on nonprofit organizations and government agencies. “One of the things that so many individuals in a lot of our communities don’t understand is federal funding has a huge impact on all sorts of things, things that we don’t even necessarily realize,” Harding said, looking at the big picture. “I think we often know that there’s state funding for programs, but typically, those state dollars oftentimes go with federal dollars.

“There’s the potential, if you completely turned off the spigot to federal funding, it would be devastating. I don’t think that’s going to happen, but it just goes to show how many different local programs and services have some connection to federal funding in one way, shape or form.

“I think that, in a sense, because it does have such a connection, that’s what kind of gives me some optimism, because so many people would be affected by this,” Harding said. “I mean we’re talking construction companies, engineers, food companies, it would absolutely affect so many different groups of people in a negative way. I don’t think anybody’s wanting to do that.

“I think they’re just trying to target specific things that are a priority and focus for the President and his administration. Personally, I think that’s what this is all about. I think maybe the way it was done kind of opened people’s eyes — ‘Oh my gosh, are we going to stop all federal funding indefinitely?’ I don’t think that’s going to happen.”

And Harding was right. The EODD has broad oversight of service providers, and the agency administers financial dealings and reimbursements for the nutrition providers, as well as ensuring they are compliant with all state guidelines.

Harding said DOCServices, which is the nutrition provider for the Sallisaw Nutrition Center, is an established provider that has been handling nutrition services for about 30 years.

The nutrition services company provides services to individuals age 60 and older, which include congregate meal sites, home-delivered meals, homemaker services, transportation, outreach, and nutrition education and counseling by a registered dietician. The social and nutritional services to seniors and caregivers in the organization’s service area stems from the Older Americans Act, which was established in 1965.

Your TIMES also reached out to the Sequoyah County commissioners, the City of Sallisaw, Sallisaw NOW Coalition and People Inc. regarding any impact a federal funding freeze would have on their organization, constituents and those they serve. No comments were received before or after the freeze was rescinded.