UPDATE:
An update on this item came in late this evening as the Executive Order from President Donald Trump on freezing federal grants and loans is now in the courts.
Just minutes before the order was set to go into effect at 5 p.m. this evening, U.S. District Judge Loren L. AliKhan blocked the funding freeze, according to the Associated Press.
“The administrative stay, prompted by a lawsuit brought by nonprofit groups that receive federal money, lasts until Monday afternoon. Another court hearing is scheduled that morning to consider the issue,” the AP reported.
Check back for more on the story as it develops.
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An announcement came from the White House overnight that President Donald Trump has suspended all grants and loans in process from being distributed by the Federal government in the slew of Executive Orders signed during his first week in office impacting all corners of life.
President Trump’s spending freeze is already facing lawsuits from nonprofit organizations impacted by the freeze in federal support, while local government in Polk County is still determining what impact it will have on ongoing and pending projects.
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City Managers Edward Guzman and Stacey Smith, along with County Manager Matt Denton all said that they are evaluating the situation and awaiting further details from programs like the Appalachian Regional Commission (ARC) to determine what will happen moving forward.
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The impact could be wide ranging, since projects funded via grants through the ARC such as Rockmart’s amphitheater project or Cedartown’s expansion of recreation projects, for instance. Others like road widening projects, economic development and more also have a potential for being impacted in the future as well.
Additional programs that could be impacted include those utilized by the Department of Public Health in the state. Spokesman Logan Boss said the grant and loan freezes are being evaluated.
“DPH does not know how the mandates will be interpreted by HHS and the extent of or the ramifications to public health programs. Additionally, DPH at state level is awaiting guidance from the Office of Planning and Budget(OPB) as the funding freeze would affect agencies and programs beyond public health,” Boss said in a brief reply on the matter.
For the moment, officials are seeking additional information and will provide updates as necessary.
The suspension according to reporting from the Associated Press came after President Trump’s Executive Order to dissolve Diversity, Equality and Inclusion (DEI) programs, in an effort to review programs receiving funding from the government and suspending those with DEI-related initiatives involved.
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Grants that have been awarded by not yet distributed are also being halted under the new order.
The President’s latest order does not impact funding to Medicaid, Medicare, Social Security, food stamp programs, student loans and scholarships. It does however have an impact on trillions of dollars that go to a variety of programs across the federal, state and local governments. Major impacts on education and health care research are also expected.
A suit to block the order is already being promised by New York State Attorney General Letitia James, seeking a Manhattan Federal court to block the move by the President.
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