A White House memo set off a flurry of panic across nonprofit groups, who said they were unable to access federal government systems used to withdraw funds.
www.nbcnews.com
Trump's funding freeze creates widespread confusion
A White House memo set off a flurry of panic across nonprofit groups, who said they were unable to access federal government systems used to withdraw funds.
The memo set off a flurry of confusion and panic Tuesday among nonprofit organizations, which said they were unable to access federal government systems used to withdraw previously awarded federal funds.
“While we understand that this is an evolving story, this disruption, at best, will slow down Head Start agencies’ ability to pay hundreds of thousands of staff, contractors, and small businesses who support Head Start operations in every corner of the country,” Yasmina Vinci, executive director of the National Head Start Association, said. “At worst, this means that hundreds of thousands of families will not be able to depend on the critical services and likely will not be able to work."
A message at the top of one website used by health care and early childhood education providers to access their federal funds warned of possible payment delays.
“Due to Executive Orders regarding potentially unallowable grant payments, PMS is taking additional measures to process payments. Reviews of applicable programs and payments will result in delays and/or rejections of payments,” the message said.
Local housing organizations were also unsure if they would have the funding available to help pay rents due Feb. 1 for thousands of low-income households in subsidized housing across the country, said Ann Oliva, CEO of the National Alliance to End Homelessness. She said her organization has heard from several members that the system used to draw down funds to reimburse their housing expenses was unavailable on Tuesday.
“What we are hearing this morning is, honestly, a pretty good amount of panic by grantees,” Oliva said. “These programs exist in red states and blue states alike, and there are vulnerable people that are going to be impacted in many, many communities and in every state across the country.”
If those funds aren’t made available in the next several days, organizations will be unable to pay rents to landlords and some tenants could face eviction.