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Uncertainty circulates after executive order stopping federal spending

Ryan Johnson
/
NPR
A memo from the Trump Administration temporarily paused federal funds.

On Monday, President Donald Trump issued a memo halting about $10 trillion in federal spending.

The memo said “Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance.” Trump said he wanted to pause funds temporarily to investigate the fundings connection to programs he opposes such as: “DEI, woke gender ideology, and the Green New Deal.”

A judge halted the order later in the week, and on Wednesday, the Trump administration rescinded the order altogether.

In the days after the order was handed down, agencies across Arkansas were confused.

“To be honest, there is just a lot of uncertainty,” said Brian Berry, Vice Provost of Research and Dean of the Graduate School at UA Little Rock. “We've really been trying to gather all our collective people together and trying to decide what does the memo mean and what are the effects of the memo.”

If it had gone into effect, the pause could have hurt UA Little Rock’s ability to train social workers, prevent opioid abuse, perform bone regeneration research and promote programs about cyber security.

Other state nonprofits could have also lost funding. The Ronald McDonald House, Heifer International, Our House, the Museum of Discovery, ACCESS Group, Inc. and Habitat for Humanity all received federal money on their latest tax forms.

President and CEO of Goodwill Industries of Arkansas Brian Marsh said their nonprofit was “self-reliant” enough to exist without the one grant the government gives them.

The National Institutes of Health gives research grants to local hospitals, meaning the University of Arkansas for Medical Sciences could have seen money taken from their budget.

The Arkansas Department of Finance and Administration, which gets federal money for programs involving Safe Haven Baby Boxes or benefits for crime victims, would have their funding threatened. Despite that, spokesperson Scott Hardin did not express concern.

“We are working closely with the Trump administration as well as our federal delegation who have been clear that direct assistance programs will be exempt from the freeze,” he said.

After the initial memo, the Trump administration sent out a document clarifying that the halt did not apply to Medicaid, student loans or SNAP benefits.

Gov. Sarah Huckabee Sanders reiterated this in a press conference Tuesday.

“I think the bigger picture, and where the president is spot on, is the fact that the U.S. has a $36 trillion deficit and we cannot continue to waste money,” she said.

“And I think he’s right to take a step back, look at every program and make sure that we’re spending taxpayer money wisely.”

That afternoon, a federal judge halted the memo, and on Wednesday the order was rescinded by the Trump administration.

Josie Lenora is the Politics/Government Reporter for Little Rock Public Radio.