Federal Funding Freeze Chokes California’s Services, Officials Warn of Crippling Consequences
California Officials Detail Trump Funding Freeze “Chaos,” Warn of Another Could Cripple State
Maricela Ramirez was at an education conference in Washington, D.C., at the end of January when she and other attendees heard the startling news: Federal funding for Head Start programs, which provide early-learning and nutritional support for low-income children nationwide, had been frozen.
Routine Withdrawal, Then Worry and Panic
Ramirez, chief education officer for the Los Angeles County Office of Education, quickly contacted colleagues and realized it was true. They had tried to make a routine withdrawal of millions of dollars in funding the day prior, but it hadn’t arrived overnight as expected. “Stress and panic” quickly began to set in, both in her office and among the conference attendees all around her.
Pauses in Federal Funding Could Disrupt Services for Up to 8,000 Children
Ramirez’s account of the fallout and ongoing fear caused by the Trump administration’s sudden decision to halt billions of dollars in federal financial aid last month was one of more than 125 declarations of harm filed as part of a multi-state lawsuit challenging the freeze in U.S. District Court. At least 16 declarations came from California.
Chaos and Uncertainty in the Days Following the Freeze
Together, the declarations paint a picture of alarm and chaos in the hours and days after the White House budget office announced the freeze in a January 27 memo, and of lingering fear and uncertainty as the Trump administration continues to fight for such budget authority in court.
Trump Administration’s Response
The administration rescinded the Office of Management and Budget memo two days after it was issued amid substantial public uproar, but some funds remained frozen in the days that followed. In response to the states’ lawsuit, the Trump administration argued that Trump and OMB “plainly have authority to direct agencies to fully implement the President’s agenda.”
Judge’s Ruling
U.S. District Judge John J. McConnell Jr. ordered January 31 that the freeze be temporarily lifted while the litigation plays out. He further blocked it on February 10, in part on the strength of the declarations – writing that the administration’s “categorical and sweeping freeze” was “likely unconstitutional and has caused and continues to cause irreparable harm to a vast portion of this country.”
Federal Funding’s Significance for California
Medi-Cal and Other Health Programs
Mary Halterman, an assistant program budget manager at the California Department of Finance, wrote that federal funding “typically comprises about a third” of the state’s budget. In fiscal 2024-25, the state’s $500 billion budget anticipates $168 billion in federal funds, not including funding for the state’s public college and university system.
Infrastructure and Environmental Projects
The largest chunk, some $107.5 billion, is for payments under Medi-Cal, California’s version of Medicaid, which provides healthcare to nearly 15 million low-income Californians, or more than a third of the state’s population. That includes about 5 million children – more than half of the kids in the state. Congress also has allocated California $63 billion under the Infrastructure Investment and Jobs Act of 2021, and nearly $5 billion under the Inflation Reduction Act of 2022, for programs related to public transportation, roads and bridges, water infrastructure, and broadband infrastructure, among others.
State Officials’ Worries
Medi-Cal and Other Health Programs
Lindy Harrington, an assistant state Medicaid director, wrote that the department “managed to continue operations” that day, but “did not have sufficient funds to meet future financial obligations.” She now fears the “budgetary chaos” of a longer disruption – under which “health care services could be drastically curtailed or even cease altogether.”
Environmental and Infrastructure Projects
Eric Lau, acting deputy director of the division of administrative services at the California State Water Resources Control Board, said his agency since 2021 has received hundreds of millions of dollars in federal grants for projects related to safe drinking water and overflow and stormwater management. About 8 a.m. on January 28, Lau staff found only 31 of the board’s 45 grants were visible in its federal payment system, and searches for the 14 others produced an alarming message: “ERROR 839: No accounts found matching criteria.” It took days for some of the accounts to come back online, Lau wrote, warning that longer disruptions could be catastrophic.
Other Impacted Programs
Education and Workforce Development
California Supt. of Public Instruction Tony Thurmond wrote that the state receives $7.9 billion in annual funding from the U.S. Department of Education, which supports 5.8 million students. The temporary freeze on funding last month did not disrupt school programs, in part because the state did not have any major draw on federal funds scheduled. However, any interference to those funds moving forward would “do immeasurable harm” to educators and students, particularly low-income students and students with disabilities.
Consequences of Another Freeze
State and Local Budgets at Risk
Mason Matthews, chief budget and financial officer in L.A. County Chief Executive Fesia Davenport’s office, shared those wider budget concerns. The county is the most populated in the nation with about 10 million residents and a budget of about $49 billion, with an estimated $5.3 billion in federal funding. The “exact ramifications” of the recent pause on federal funding “remain unknown,” but the risks posed by another freeze are high – threatening “a range of vital commitments to [county] residents including, but not limited to, healthcare, public safety operations, public benefits, workforce development, foster care, child support, housing, and emergency management.”
Conclusion
The consequences of a prolonged freeze or another one could be far-reaching and devastating for California, with potential impacts on vital services, programs, and infrastructure. It is crucial that Congress and the Trump administration work together to find a solution that prioritizes the needs of the state and its residents.
FAQs
* What is the significance of federal funding for California?
Federal funding comprises about a third of the state’s budget, with the largest chunk going to Medi-Cal and other health programs.
* What are the potential consequences of another freeze?
A prolonged or repeated freeze could disrupt vital services, programs, and infrastructure, causing irreparable harm to California’s residents and economy.
* What are the impacted programs and services?
Medi-Cal, other health programs, environmental and infrastructure projects, education, workforce development, and more.
* What can be done to prevent another freeze?
Congress and the Trump administration must work together to prioritize the needs of the state and its residents, ensuring that federal funding is stable and sustainable.
