WASHINGTON – Several Alabama agencies and organizations Tuesday were trying to determine what President Donald Trump’s freeze on some federal grants could mean for them and their services.
Trump Administration officials said the pause in federal grants and loans will ensure federal money is being spent in compliance with the president’s executive orders, such as undoing diversity, equity and inclusion efforts and protections for transgender Americans, according to The Associated Press. A federal judge ruled Tuesday afternoon that the funding freeze can’t be implemented until Monday and only applies to existing programs.
Federal funding to individuals will not be impacted such as Social Security or Medicaid, the White House said.
Alabama received $18.7 billion or 43.1 percent of its total revenue from federal grants in fiscal year 2022, according to The Pew Charitable Trusts.
The Alabama Department of Finance said its evaluating any potential impacts and awaiting guidance.
The Alabama Medicaid Agency said Tuesday its payment portal was halted temporarily, but it is now accessible.
State Superintendent Eric Mackey said in a statement some discretionary grant funding could be affected.
He said the freeze should not impact programs like Title I and the Individuals with Disabilities Education Act. Title I funding provides financial assistance to districts for children from low-income families, IDEA provides grants to serve children with disabilities.
“We are working closely with other state and federal agencies to secure any funds necessary to continue normal daily operations without interruption,” Mackey said.
The Alabama Commission on Higher Education said the freeze shouldn’t affect financial awards to individuals and the commission said it is monitoring grants awarded to universities for research or public service.
Rep. Terri Sewell, D-Birmingham joined other House Democrats, including Rep. Shomari Figures, D-Mobile, sending a letter to the Trump Administration demanding the White House share a full list of frozen initiatives.
Sewell also posted on X that the freeze will have “devastating impacts on our district and EVERY community in America.” She said infrastructure projects will be halted and Head Start programs will be in trouble.
Figures posted on X that the freeze is “another example of a self-inflicted disaster.”
President Trump’s Executive Order to freeze federal funding is another example of a self-inflicted disaster. Issuing vague guidance leaves the impact and implementation open for interpretation. The WH is “unsure” if this EO will shut down access to Medicaid, which affects tens of…
— Rep. Shomari C. Figures (@repscfigures) January 28, 2025
Sen. Tommy Tuberville, R-Ala, told Alabama Daily News the freeze is “not going to hurt us.”
Sen. Katie Britt, R-Ala., said she wants to see responsible government spending and remains focused on helping Trump accomplish that.
“Alabamians don’t want their hard-earned taxpayer dollars going to leftwing partisan priorities like the Green New Deal, DEI, abortion, and nongovernmental organizations that subsidize and incentivize illegal migration,” said Britt in a written statement.
Alabama Arise, which supports low-income Alabamians, said the halt on grants and loans could cause widespread harm to people in Alabama and called for the order to be reversed.
“Policymakers should not act to make life harder for people who are already struggling to make ends meet,” Robyn Hyden, executive director of Alabama Arise, said in a statement. “They should focus instead on investing in education, health care, public transportation and other services that expand opportunity and help working people get ahead.”