Trump administration rescinds freeze on federal funds, leaves local agencies confused

NIAGARA FALLS, N.Y. (WIVB) — The Trump administration on Wednesday rescinded an order freezing federal grants and loans. The order comes after the federal government enacted the freeze, which caused mass confusion across the country and the filing of lawsuits.

Even with the order on federal grants and loans being rescinded, local agencies still have many questions on whether they’re going to get the funds they expect, and whether they have to create backup plans.

The order freezing federal grants and loans was set to go into effect at 5 p.m. Tuesday and state attorneys general from across the country, including in New York state, sued the Trump administration. A federal judge then temporarily blocked the freezing order.

Still, with the order being rescinded, agencies like Pinnacle Community Services in Niagara Falls still haven’t been assured that it will receive the federal funds it expects.

Pinnacle relies on $1 million per year from the federal government to operate two homeless shelters and a program geared to local youth.

“We were able to get some access to the system yesterday, but since then, that access has been limited across the state,” said Laura Pennington, president and CEO of Pinnacle Community Services.

Democratic states sue Trump administration over federal funding freeze

With the back and forth over federal funding, Pinnacle said it would have to close its shelters if the money does not arrive.

“At this point, we’re going to do our best to keep the programs in place and I hate to say it’s on a day-to-day basis as to whether or not the funding is going to come through,” said Steve Sinclair, board treasurer of Pinnacle Community Services. “We have to determine how long can we do the program for.”

A spokesperson for the Erie County government said the county is still waiting on $5 million in FEMA reimbursements from the deadly Christmas blizzard that took place over two years ago.

The county executive’s office said that the federal freeze threatened funding to over 120 grants and programs in the county.

Just last week, the regular Home Energy Assistance Program (HEAP) ran out of money from the federal government. Governor Kathy Hochul’s office said it then had to replenish the program using $35 million in state funds.

“I think what’s important is that customers get their applications in early, that’s really key,” said Shelby Cohen, a spokesperson for NYSEG. “These funds are only available until they are exhausted, so what’s really important is that if you’re having trouble paying your bill, reach out and look for those resources.”

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