Trump’s Federal Funding Freeze Could Hit New York Hard
An order from President Donald Trump’s budget office to freeze grant funding to states has already sown confusion and spurred pushback in New York.
States Sue Trump Administration
The state’s Attorney General, Letitia James, and five other state attorneys general on Tuesday announced they will sue the Trump administration in an attempt to stop the enforcement of the directive, which came down Monday evening.
"There is no question this policy is reckless, dangerous, illegal and unconstitutional," James said during a virtual press conference. "From the families who rely upon Head Start for childcare, to the children across the country who depend on SNAP for their next meal, to the seniors who rely on state services to get the care that they need — this policy will disrupt the lives of millions of Americans in New York and nationwide."
Impact on New York
The National Council of Nonprofits, the American Public Health Association, Main Street Alliance and SAGE filed a lawsuit in federal court challenging the order, which had been scheduled to take effect at 5 p.m. on Tuesday. Shortly before then, a judge issued a ruling staying the pause until Monday.
Billions in NYC
Both Gov. Kathy Hochul and Mayor Eric Adams expressed uncertainty around how the directive will affect New Yorkers and indicated they’re assessing which programs could be impacted.
New York State relies on about $93 billion in federal aid, with the biggest portion for Medicaid, which provides health coverage for seven million people in the state. New York City receives nearly $10 billion in federal spending, according to an analysis from the Citizens Budget Commission.
Disruption to State and City Budgets
But the freeze could affect many other agencies, including the MTA, other transit agencies, and public universities. It could also endanger billions of dollars from the Biden infrastructure bill promised to New York for the Gateway Tunnel ($12 billion), the MTA ($4.5 billion), and city projects ($2.3 billion).
"I am concerned about a lot of our funding sources," Hochul said Tuesday, adding that she plans to appeal to congressional Republicans representing New York. "We are into governing, not panicking. And as I said, I’m not playing whack-a-mole with every single initiative that comes out of Washington. I have to govern a state and find more ways to make New York more affordable and safer. Those are my priorities. We will deal with the issues when they become a reality."
Conclusion
The impact of Trump’s federal funding freeze is far-reaching, with potentially devastating consequences for New York State and its residents. The state and city governments are scrambling to assess the impact and plan for a potential disruption to their budgets and services.
Frequently Asked Questions
- What is the purpose of the federal funding freeze?
The funding freeze is intended to halt the flow of federal funds to states and local governments, with the goal of reducing the national debt and promoting "national interest." - How will the funding freeze affect New York?
The funding freeze could have a significant impact on New York State, which relies heavily on federal aid for various programs, including Medicaid, infrastructure, and disaster relief. - What is the current status of the lawsuit challenging the funding freeze?
A judge has issued a stay, halting the enforcement of the funding freeze until Monday.
