Federal freeze rescinded, for now: ‘Every nonprofit in town … is watching’

Local organizations, schools and more get a breather Wednesday, say they’re ready to scramble again on a potential federal spending freeze still looming.

(Photo: Unsplash)

Greater Lafayette organizations, from schools to nonprofits to local governments, were taking a breath and collecting themselves a bit Wednesday afternoon, after President Donald Trump’s administration pulled back on a call to pause payments on federal grants and programs while the White House looked for signs of spending on diversity efforts and other so-called wokeness.

What the conflicting messages meant still weren’t clear as of late Wednesday. And some local leaders were cautious about predicting what was coming on a potential federal fund freeze from the White House.

“Every nonprofit in town that I know is watching this very closely,” said Marie Morse, executive director of Homestead Resources, a Lafayette-based organization that offers home buying support for families. Homestead also is part of construction of a housing project next to the Historic Jefferson Centre Senior Apartments that came together with assorted federal, state, local and private funding.

“Many do not have the reserves to hold on, especially since most federal funding is a reimbursement of cash already spent,” Morse said. “And these programs that were going to be frozen are a clear indication, in my opinion, of the programs that the president may want to do away with completely. I hope that is wrong.”

According to national reports, the Trump administration said Wednesday’s move to rescind the Office of Management and Budget order didn’t mean the White House was backing away from cuts coming to federal programs and spending.