Trump's federal funding freeze prompts mass confusion across North Carolina
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The Trump Administration's attempt to halt federal grants and financial assistance programs had institutions, cities, nonprofits and politicians across North Carolina scrambling to understand what the ruling would mean for their budgets, investments and programs.
- Even North Carolina's governor said it remained unclear what implications the freeze could have on the state.
Why it matters: Federal grants can be found everywhere from city budgets and university research to aid for nonprofits and Hurricane Helene relief in Western North Carolina.
- The Triangle's economy, in particular, has benefited greatly from federal funding, with universities like UNC and Duke and institutions like RTI International, bringing in billions of dollars from the National Institutes of Health and the National Science Foundation.
Driving the news: A federal judge on Tuesday temporarily halted President Trump's effort to pause federal grant, loan and financial assistance programs.
- But that news came in at the very end of a tumultuous day for organizations and programs throughout the state.
What they're saying: "Like many of you, I am concerned that freezing federal funding will hurt North Carolinians, especially those recovering in [Western North Carolina]," Gov. Josh Stein said in a statement on X at 2:30pm, about two-and-a-half hours before the judge stepped in.
- "My office is currently reviewing and seeking clarity about what [Office of Management and Budget] order to freeze federal grants means for our state."
- Rep. Valerie Foushee, a Democrat who represents much of Durham and Chapel Hill in Congress, said the freezing of funds will harm researchers and students in the Triangle.
- "This extreme order will not only pause countless federally funded research projects," she said in a statement, "but will also ... withhold essential funding from first responders, schools, infrastructure improvement projects, healthcare centers, small businesses, veterans, seniors, and more."
Zoom out: The online portal through which states access federal Medicaid funds stopped working Tuesday morning, the New York Times reported.
- The North Carolina Department of Health and Human Services, which has a budget that's 79% reliant on federal funds, said it is assessing the scale of the pause. NC Medicaid was not able to access the portal for part of the day but now it can.
- "We are confirming that (the) requested funding will be received. At this time, there is not an impact to beneficiaries," NCDHHS said in a statement to Axios.
Zoom in: Raleigh depends on federal funding for a range of services and infrastructure, from affordable housing programs to its bus system to electric charging stations, city manager Marchell Adams-David said in a statement to Axios.
- "These are real dollars that make a noticeable difference for our community," Adams-David said.
Between the lines: The temporary pause, outlined in a memo from the White House Office of Management and Budget, aimed to give the new administration time to review agency spending.
- The memo said agencies have until Feb. 10 to submit detailed information on any programs, projects or activities subject to the pause.
- The memo said the pause "does not include assistance provided directly to individuals."
Yes, but: There is great uncertainty about how widely the pause would have been applied and how long it would last.
- Legal scholars were quick to be skeptical of the order, Axios' Neil Irwin writes.
- "I can't imagine that the president would knowingly cut off housing assistance for people displaced from their home. So we've just got to sort through it and see how they ultimately implement it," Republican Sen. Thom Tillis told a reporter Tuesday.
Editor's note: We've updated this story with fresh details.