White House backs down on funding freeze

Yahoo

29-01-2025

Stewart HuntingtonICT
Native leaders hailed a move by President Donald Trump's budget office Wednesday to rescind an order freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across Indian Country and beyond.
'I am happy for every federally recognized tribe, as well as states and organizations that this has affected in which the people that need services are going to be provided,' said OJ Semens, Sicangu Lakota, executive director of the Coalition of Large Tribes.
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The Monday evening order freezing the funds from the White House Office of Management and Budget sparked uncertainty over a crucial financial lifeline for tribes, states, schools and organizations that rely on trillions of dollars from Washington, and left the White House scrambling to explain what would and wouldn't be subject to a pause in funding.
Late Tuesday, a federal judge issued an injunction halting the order until Monday, Feb. 3. The White House issued the order rescinding the funding freeze in a terse memo Wednesday that leaves unanswered whether the funding freezes would be reinstated.
'OMB Memorandum M-25-13 is rescinded,' it stated. The memo was signed by Matthew J. Vaeth, acting director of the Office of Management and Budget.
White House posts on social media, however, indicated the memo had been suspended but not the administration's efforts to cut spending it opposes. And some reports continued to surface of difficulty accessing funds that had been suspended.The coalition, which represents some 20 Native nations with large land bases, demanded that the administration declare 'that any Federal funding going to Tribal governments or entities serving Tribal citizens is a legitimate Federal expense and need not be the subject of any further justification or paperwork by any Federal agency.'
The coalition further cited what it said were repeated difficulties tribal entities had accessing federal funding – even before Monday's funding freeze.
'Since January 23, 2025, tribal governments and tribal organizations that serve tribal citizens have encountered escalating problems with Federal accounts suddenly and without explanation 'zeroed out' and our access to Federal payment systems shut-off,' according to the coalition's resolution demanding the White House reverse course.
'These freezes were not limited in any way, and included everything – public safety funds, healthcare funds, waste management funds, child protective service funds, etc.," the statement said. "Most COLT Tribes are more than fifty percent funded by Federal dollars, meaning our tribal governments will have to shut down in days or weeks if the broad freeze persists, which would be devastating to our Tribal citizens.'
Semens said that his group had been in contact with White House officials and others before the order rescinding the funding pause was issued.
'We are very proactive reaching out to our congressional people, reaching out to the cabinet nominees,' Semens said. 'We are very, very proactive in ensuring that the individuals know what large land-based and treaty tribes are and need.'
Democratic U.S. Rep. Sharice Davids of Kansas said before the order rescinding the funding pause that the freeze on federal funding was not what the nation needed – or wanted.
'This is not what the people voted for, whichever party they supported,' said Davids, Ho-Chunk Nation of Wisconsin. 'America wants better prices at the supermarket and safe communities.'
Semens said that, while the latest series of events might be a new experience for tribes, there is always a learning curve with a new administration.
'We don't care whether they're on the Republican side or the Democratic side, we have worked through administrations,' he said. 'And every time there is a change in administrations, it comes down to us educating them on their treaty obligations. And you've got to remember, they pull in thousands of people and put them in jobs. And most of these people don't even know Indians exist. So it's a continual educational process that we have to go through.'
Other lawmakers hailed the apparent White House about-face.
"This is an important victory for the American people whose voices were heard after massive pressure from every corner of this country—real people made a difference by speaking out," said Sen. Patty Murray, a Democrat from Washington. "Still, the Trump administration – through a combination of sheer incompetence, cruel intentions, and a willful disregard of the law – caused real harm and chaos for millions over the span of the last 48 hours which is still ongoing."
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