New Yorkers, local organizations concerned about potential future federal funding freezes

CBS News

29-01-2025

NEW YORK — New Yorkers and local organizations are confused and concerned after the White House press secretary said the administration will take more action to freeze funding of certain programs in the coming weeks and months.
On Wednesday, the White House rescinded a memo directing a temporary freeze on most federal grants and loans after a federal judge blocked the move Tuesday. Trump addressed the confusion Wednesday, saying it was a short-term pause to look at what he calls "waste and abuse that's taken place" in government for too long.
"I'm very afraid"
The Food Bank for NYC says it does partner with programs that rely on federal grants, like working with farmers to distribute food through the United States Department of Agriculture.
"We're watching closely to see what exactly is going to be impacted," said Matt Honeycutt, chief development officer for the Food Bank for NYC.
People in line for free lunch at the Food Bank for New York City in Harlem were confused whether the programs they rely on will be impacted.
"I'm 65 years old, and I'm very afraid," Harlem resident Catthy Capers said. "Just the idea of them offering or suggesting that they was going to stop funding, it's still very distraught for me."
"Since pandemic, I lost a job partially, and a friend of mine mentioned to me there's a food pantry," Harlem resident Ryo Ichi said. "My rent is more than my receiving benefit, so I have to think about what I should do."
"I felt good when they rescinded it, yes, because when it first hit, I was like, what are folks going to do?" another person said.
Meals on Wheels was also one of the programs that fell under Trump's broad order to pause funding.
The National Alliance on Mental Health's New York City Metro Division said it could mean a loss of $750,000. The federal government also provides billions of dollars to the New York City Housing Authority (NYCHA).
"I am deeply alarmed," Sen. Gillibrand says
Democratic lawmakers warn this could impact everything from public safety initiatives to child care programs and cancer research.
Sen. Kirsten Gillibrand said it could have devastating economic consequences if it eventually goes into effect.
"It threatens American families, businesses, public safety, infrastructure, our economy and our national security. As a member of the Appropriations Committee, I am deeply alarmed and I am calling on the Trump administration to reverse course," she said Wednesday. "New York alone was awarded over $90 billion in federal grants last year. All of that funding could be affected."
Sen. Chuck Schumer said it's clear the administration plans to freeze funding for things, but seemed to suggest the rescinding of the memo was a win.
"So today, we saw what happens when Americans fight back against disastrous policies," he said. "Did President Trump know he was kneecapping cops and firefighters from purchasing literally life-saving equipment, like bulletproof vests and breathing gear? Did President Trump know that he was destroying Puerto Rico's assistance program?"
"The president cannot do this. We have appropriated those funds through Congress, they are directed for the spending, and pausing that is just a breach of the Constitution in terms of the separation of power," New Jersey Sen. Andy Kim said.
Some Republicans are defending the president's actions. Rep. Nicole Malliotakis told CBS News New York's Jessica Moore that the president is well within his rights to pause funding programs to assess how taxpayer money is being spent. Malliotakis also accused Democrats of fearmongering.
DNC says 2.3 million New Yorkers will be impacted
Democratic National Committee Director of Communications Abhi Rahman told CBS News New York's Jessica Moore their research team has been looking at which states will be most impacted by the GOP's proposed budget reconciliation bill -- and now, this new freeze.
Rahman accused Republicans of trying to fund Mr. Trump's tax cuts by cutting Medicaid expansion in states like New York, where he said more than 2.3 million people will be affected.
"Republicans are attacking Medicaid, that is the main takeaway here. They're attacking critical government programs that millions of people rely on, especially in New York," he said.
When asked about White House Press Secretary Karoline Leavitt saying the freeze would not impact Medicaid, he replied, "it clearly will."
"Plus, what they're planning on doing in the reconciliation bill will affect it even more," said Rahman. "So all of it is together and all of it is an attack on critical services that people need across the country."
He went on to say while it wouldn't surprise him if the administration was intentionally hitting states like New York for political reasons, the freeze will impact everyone across the country.