Confusion and worry quickly spread Tuesday among charitable groups and state and local governments as the Trump administration put a freeze on federal grants. Even with legal challenges, some say the fear in states such as North Dakota could be real.

The White House issued a memo ordering agencies to "temporarily pause all activities" related to distribution of federal financial assistance. Officials stressed it's meant for programs to show their priorities align with the new administration, and said direct aid for programs such as Social Security and SNAP won't be disrupted.

However, Richard Fiesta, executive director of the Alliance for Retired Americans, noted the psychological effect in this part of the United States.

"The Dakotas, for example, are in the top 10 [states] of having per capita oldest populations in the United States," he said. "So, it would be much more important to have these programs on time and ready to go, rather than this chaos we're seeing."

With programs such as Meals on Wheels, he said, unexpected headlines about their funding status makes seniors feel uneasy about meeting day-to-day needs. A judge on Tuesday temporarily blocked the pause from taking effect, but that court order only lasts until next Monday. Democrats and even some Republicans in Congress took issue with the administration's actions, with questions about legal authority.

Critics of the move said even a temporary pause in funding could be harmful to services such as Head Start, or suicide-prevention hotlines. Fiesta said he worries that some programs could look very different after agencies are "reviewed" by White House budget leaders. He warned that pursuing government efficiency in chaotic fashion doesn't really help taxpayers.

"We could see much more strain on the health-care system, in general, on hospitals," he said. "You could see a ripple effect because of inability to get care."

He pointed out that Medicaid plays a big role in funding rural health-care networks, including nursing home costs.

Policy experts have said drastic cuts, no matter how they're carried out, could put more pressure on state budgets.


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A report indicated layoffs in federal agencies by the ad hoc Department of Government Efficiency could affect a significant number of Ohioans and substantially undercut the state's budget.

There are approximately 114,000 federal employees in the state. A Center for Community Solutions study found if all federal employees in Ohio were to lose their jobs, the unemployment rate would increase by almost 40%.

Dylan Armstrong, public policy fellow at the Center for People Solutions, said it would have a profound effect on many state agencies and potentially cause service interruptions.

"For federal fiscal year 2021, almost $58 billion of investments through all the different federal agencies," Armstrong pointed out. "The state doesn't have the capacity to replace those dollars. No one has the capacity to replace the dollars."

The report examined federal employment and funding by Ohio congressional districts. Alexander noted Congressional District 6 in Appalachian East Ohio receives the most federal funding, at $6.4 billion, while District 10, with Wright-Patterson Air Force Base, has 20,000 federal employees.

Alexander underscored the three largest federal agency outlays in Ohio are from the Departments of Education, Agriculture and Health and Human Services. He said H-S cuts could have the most ripple effects, as they fund programs such as Medicaid, assistance to families, Head Start and research at universities and medical institutions.

"If there's researchers at a university in Ohio who are receiving federal funding from the National Institutes of Health to do a research project, if that funding dries up that's their job," Alexander stressed. "That's how they get paid. That's how they do their research."

The report showed 76% of federal resources in Ohio are distributed through state, township, county or other local government districts. Alexander added those entities would be responsible for making up the loss of revenue.

"At the end of the day, you'd need more revenue and that can only come from so many places," Alexander acknowledged. "A likely place would have to be increasing taxes on taxpayers if we wanted to continue to have the same level of service."

Reporting by Ohio News Connection in association with Media in the Public Interest and funded in part by the George Gund Foundation.


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South Dakota farmers leading the "locally grown" movement have visions of a dynamic regional food production system but some of it is in doubt with looming federal cuts.

The U.S. Department of Agriculture is swept up in the Trump administration's downsizing of federal agencies, including cancellation of the Local Food Purchase Assistance Cooperative Agreement Program for food banks to buy local produce at a market rate. Grants from the Regional Food Business Center program are also in limbo.

Stephanie Peterson, a funding recipient who operates a small egg-producing farm called Fruit of the Coop near Sioux Falls, said she is unsure she will get the rest of her money to scale up.

"The pandemic showed us the fragility of our industrial ag system, and how important it is to build up and focus on these regional and local systems," Peterson contended.

But after pouring her heart and soul into this seven-acre farm, Peterson wonders if the dream will slip out of her hands. It would mean local restaurants would have one less option for buying eggs at a time when avian flu is disrupting supply chains. The USDA has resumed funding for some initiatives but the department's top official has categorized certain local food programs as "nonessential."

The group Dakota Rural Action said ending the purchasing program for food banks affects nearly 30 farmers around the state.

Kjersten Oudman, owner of Blue Sky Vegetable Company, makes produce deliveries on behalf of a regional food hub. She said she is sad her local food shelf will lose out on some fresh and healthier options.

"We were one of the few deliveries that was giving it potatoes, cabbage, carrots or microgreens," Oudman explained. "I am most upset that people who need good, healthy, nutrient-dense food may not be able to get it."

On the business side of things, Oudman worries specialty farmers in South Dakota will lose ground in attracting new customers and markets for their products.

"We're pretty behind a lot of our other states in our infrastructure," Oudman pointed out. "There's just a lot of uncertainty and a lot of questioning of (if) grant programs do not come through, what do our businesses need to do in order to continue pushing for development?"

Postmaster General Louis DeJoy is joining forces with the so-called Department of Government Efficiency to cut costs at the Postal Service, this week announcing plans to cut 10,000 workers, amid other reforms.

Kentucky has lost postal service offices at higher rates than other states, especially in rural and Appalachian counties.

Mark Dimondstein, president of the American Postal Workers Union, said older adults, veterans and others depend on the service's commitment to deliver mail to everyone, regardless of where they live, noting the Postal Service delivers to every address in the country, 169 million addresses and 318 million pieces of mail, every day. Local unions in Kentucky are participating in a National Day of Action on Thursday.

"Part of the effort on Thursday is to make the postal customers around the country fully aware of this threat to what belongs to them," Dimondstein explained.

In a letter to Congress, DeJoy said the agency needs help with lease renewals on its retail centers and tackling the issue of counterfeit postage. The Trump administration has also floated the idea of privatizing the post office. Supporters argued the change would make the Postal Service run more efficiently and save money.

Polling from the Pew Research Center finds 72% of Americans have a favorable view of the Postal Service.

Dimondstein pointed out more than five decades ago, postal workers won collective bargaining rights. He stressed the union is prepared to fight back on any attempt to weaken union rights or target worker protections and working conditions.

"It's also very important, I think, for the public to be reminded that good living-wage jobs help our communities," Dimondstein added. "They help make them stronger. That's good jobs, turnover in the community to restaurants to small retail stores to housing."

According to the union, privatization would eliminate more than 600,000 living-wage union jobs, including more than 70,000 military veterans. As of last November, the Postal Service employed more than 7,000 Kentucky workers.