Federal funding freeze causes chaos across San Diego governments

• The judge's administrative stay expires Monday, but was granted in response to a complaint by the National Council of Nonprofits, the American Public Health Association, the Main Street Alliance and SAGE.
• California Attorney General Rob Bonta also joined 22 Democratic attorneys general in a lawsuit to stop the order.

State of play: Local officials are still determining which programs are imperiled by the order, after a Monday evening memo from the federal Office of Management and Budget indicated a broad impact.

• The administration issued an updated memo Tuesday saying the order did not apply across the board and was directed at areas like DEI and climate change targeted by previous Trump orders.

Zoom in: In an internal email Tuesday, Lisa Jones, president and CEO of the San Diego Housing Commission, said the agency believes rental assistance, affordable housing and homelessness do not fall under the freeze.

• "We have been advised that this pause on federal grant funds does not apply to programs that provide direct benefits to individuals and families," she wrote.
• SANDAG — the regional transportation agency that gets 36% of its funding from federal sources — declined comment while it reviews the order and awaits guidance.

By the numbers: About one third of California's budget — or $153 billion — comes from federal funds, according to a November report from the California Budget and Policy Center.

• 75% of that money flows to health and human services programs — such as Medi-Cal, CalWORKS and child welfare services — that could be excluded from the freeze.
• Locally, that state funding flows through San Diego County's Health and Human Services Agency, which has a $3.4 billion budget that accounts for 40% of county spending.
• But the state's budget also relies on federal funds for labor and workforce development ($8.5 billion), K-12 education ($7.9 billion), higher education ($7.4 billion) and transportation ($6.8 billion).

Between the lines: The city of San Diego received a total of $68 million from the federal government in its last budget, but one grant demonstrates the complicated question local officials are trying to answer.

• Rep. Juan Vargas secured $850,000 to improve a small business corridor in Encanto by combatting blight, adding street lights and making other pedestrian-focused infrastructure improvements.
• But that grant came from a "historically disadvantaged small business revitalization program." City officials are grappling with whether it will be considered a "DEI initiative."

What they're saying: Jessica Anderson, interim CEO at the San Diego Regional Chamber of Commerce, said in a statement the freeze threatened regional stability and long-term growth.

• "Freezing critical programs such as small business loans, healthcare, education, childcare, and infrastructure will severely affect our workforce and economy," she said.
• "The City uses funding from a large portion of the listed programs in the directive issued (Monday) to support efforts that keep San Diegans safe, rebuild critical infrastructure like bridges and storm channels, and help some of our community's most vulnerable people," said Walt Bishop, San Diego's director of government affairs. "It would be highly detrimental to San Diegans – and to Americans across the nation, frankly – for federal funding to be pulled back in the manner proposed."