Trump Administration's pause on federal grants sparks concern in New Mexico
NEW MEXICO (KRQE) – Despite a pause on its effect, a wide range of New Mexico leaders are still reacting to the Trump administration's directive that would have paused federal grants and loans saying it rattled the funding normalcy that so many agencies rely on.
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New Mexico's federal lawmakers say the directive has the potential of sending dozens of local non-profits, medical providers, and others into a tailspin. 'We started the day with so many of these portals closed and unable to process reimbursement of Medicaid which is the big driver of health care things like nursing homes in New Mexico that will be have been an utter train wreck within days,' said Sen. Martin Heinrich (D).
'I met with the Zuni youth enrichment project. 67 percent of their federal funding serving over ten thousand kids in public schools in Zuni pueblo essentially vanished overnight because they could not access the system to access invoices to pay at least ten of their employees that rely on federal funding,' said Rep. Gabe Vasquez (D).
Federal lawmakers detailed a wide range of funding issues on Tuesday from groups accessing housing grants to Headstart operating funds.
The New Mexico Coalition to End Homelessness said they received roughly $16 million in federal funds last year and saw immediate issues Tuesday morning. 'We are looking at people from being housed to unhoused almost instantly. The majority of the non-profits run almost paycheck to paycheck,' said Monet Silva, Executive Director, New Mexico Coalition to End Homelessness.
The New Mexico Department of Justice believes as much as $11 billion in federal funds come into the state each year. They are still working to figure out how much money the Trump Administration's budget memo could freeze if it takes effect.
While a judge put a stop to the funding pause. New Mexico's federal delegations said they believe some groups might still experiencing residual funding issues until early next week.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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