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‘Extremely drastic’: Utah County agency says federal funding freeze would have overwhelming impacts

By Curtis Booker - | Jan 28, 2025

Julia Demaree Nikhinson, Associated Press

President Donald Trump speaks in the Roosevelt Room of the White House on Tuesday, Jan. 21, 2025, in Washington.

On Tuesday, a federal judge halted an executive order from President Donald Trump to initiate a freeze on federal loans and grants.

Though the extent of the order wasn’t clear, a notice sent to government agencies Monday seemingly could financially upend a vast majority of programs and agencies across the country.

According to The Associated Press, Trump administration officials said the decision to pause funding for local governments, schools and nonprofit organizations around the country was “necessary to ensure that spending complies with Trump’s recent blitz of executive orders.”

Among the programs and agencies whose funding could be in jeopardy are law enforcement, first responders, schools, child care and health care services, as well as states and local charitable organizations that would lose access to grant funding allotted to provide services.

U.S. District Judge Loren L. AliKhan temporarily blocked the push from the White House on Tuesday afternoon, just minutes before the order was set to take effect. The judge could make a more permanent ruling on the matter next Monday.

While it’s unclear which federal funding in Utah could be cut off if Trump’s orders are carried out, at least one local government agency that handles a swath of services in multiple counties says the repercussions would be significant.

The Mountainland Association of Governments works with cities in Utah, Summit and Wasatch counties on transportation planning, economic development, resources for the unsheltered, the Meals on Wheels program and other various services.

Johnathon Knapton, MAG’s communications manager, said the executive order — if allowed to proceed unfettered by the federal judge — could have dramatic consequences to local programs, as they heavily rely on federal and state funding.

“It would be extremely drastic and have a tremendous negative impact,” he said.

MAG’s Community Development Block Grant Program aids in supplying resources throughout Utah County in efforts to support communities and neighborhoods in need of improvements to infrastructure, housing and other resources.

Michelle Carroll, executive director of MAG, said most, if not all, of those projects would be greatly impacted.

“It would really cause a pause in all of our programs that we offer, with the exception of a couple small programs that we receive from local and state non-federal funding,” she said.

The agency’s Meals on Wheels program already was facing financial hurdles from a funding shortage, leaving 500 seniors on the waiting list to receive food.

Each year, MAG receives funding from the state to keep a steady flow of meals delivered each day to the area’s aging population. Recent fundraising efforts have helped secure some additional monies, but it wouldn’t be enough to sustain the program, Carroll explained.

Beyond Utah, Meals on Wheels of America said the order could impact operations abroad.

“While the memo states programs that provide direct aid to individuals — like Social Security and Medicare — are exempt from this order, the two-page memo is unclear and harmful. It is uncertain whether it applies to funds that are dispersed to states or other entities to allocate, such as Older Americans Act Nutrition Program funding,” the organization said in an email sent to media affiliates and obtained by the Daily Herald.

MAG says it hopes lawmakers can share more transparency about which programs could be impacted if the order is pushed through and that, ultimately, legislators will recognize the importance of the programs they provide to numerous communities.

“The thing that is so frustrating too, is it’s just so sweeping,” Knapton told the Daily Herald. “It doesn’t just affect us, it affects the food pantries that aren’t going to be able to have food on the shelf, the head start programs for preschool kids. It’s just a huge impact.”

As state leaders and local government agencies continue to learn more in the coming days, Knapton said the exact impact of a funding freeze is yet to be determined.

“So, a lot of variables (are in play). It’s hard to say, but in short, it would be a huge negative impact,” Knapton said.

The Daily Herald reached out to several other agencies that were not willing to comment on the matter, citing company policy or expressing a desire to wait until more information on the executive order becomes available.