By BEX Staff for NVBEX
The federal government froze spending on loans and grants earlier this week, causing an uncertain future for many programs and agencies in the county. The government has since rescinded the freeze.
Shortly before the freeze went into effect, U.S. District Judge Loren AliKhan blocked parts of the order. This allows funding to trickle through until a hearing scheduled for this upcoming Monday.
The impact to construction projects could be far reaching and detrimental. Project types likely to be negatively impacted if federal funding is reduced or withdrawn include:
- Transportation projects;
- Transit projects;
- Aviation projects, and
- Multifamily projects that utilize HUD or LITCH mechanisms.
A coalition of attorneys general from 22 states and the District of Columbia, including Nevada’s Aaron Ford, created a lawsuit to cease President Trump’s executive order regarding the freeze.
In the face of the confusion and challenges created by the freeze, the Trump administration rescinded the order on Wednesday. Before stepping back the order, the administration had stated it planned to analyze how federal funds are being spent and cut down on things it views as unnecessary.
According to area news reports, a Pew analysis of U.S. Census Bureau and National Bureau of Economic Research showed Nevada had a higher total of revenue stemming from federal funds than the national average, with the Silver State pulling in more than $9.1B.
Democratic Senator Catherine Cortez Masto announced a hesitation in approving Sean Duffy to lead the Department of Transportation. She cited the uncertainty of funding for seniors, veterans, families and “job-creating transportation projects statewide.”
Republican Governor Joe Lombardo made a statement indicating he is waiting to participate in a meeting with the Office of Management and Budget to discuss impacts the freeze may have on state agencies.
The Southern Nevada Regional Housing Authority, Nevada Department of Transportation, Nevada Department of Health and Human Services and the nonprofit Opportunity Village are among some of the other agencies investigating how they will be affected by the freeze.
Other Affected Entities
Members of the administration claimed it is a “waste of taxpayer dollars,” to fund a vague number of social programs and federal projects. The administration claimed individuals will not stop receiving federal assistance such as Social Security, Medicare, food stamps, student loans and scholarships. Apart from that, nothing has been specified. Instead of offering clarity on the matter, the administration pointed to nebulous “wokeness” as the target of the funding freeze.
A variety of federally funded operations in Nevada are trying to find answers regarding the funding. Particularly health and education services have established fears of what could come of the freezing. For example, the nonprofit Nevada Health Centers had its 330 Grant paused. This grant funds 20% of the organization. Typically, the organization serves more than 50,000 people in Nevada annually.
President Trump has frequently expressed his disdain for the U.S. Department of Education. The Clark County School District claimed it has been working with the Nevada Department of Education to find potential solutions. District officials believe there will be no immediate disruptions to programs and student services but will keep families updated as more impacts become clear.
A report from the Nevada Independent stated Nevada had been ranked 46th in the nation for education with statistics from 2022. The report also found that 73% of fourth graders in the Silver State did not meet reading standards and 79% of eighth graders did not meet math standards.
Nevada’s public higher education institutions have received millions of dollars of federal funding. Nevada’s universities also have DEI programs, which are programs Trump has criticized numerous times. In 2023, University of Nevada, Reno received more than $22M and University of Nevada, Las Vegas received more than $10M in federal funding from the National Science Foundation. The foundation focuses on supporting researchers. Officials at UNR stated it is unclear how the institution will be affected.
UNR applied for Hispanic Serving Institution status, which would allow the institution to seek an array of federal grants. An institution can only receive the status if its enrollment is at least 25% comprised of Hispanic undergraduate full-time students. UNLV already has HSI status.
Agencies are to submit a report on programs, projects and activities by Feb. 10.
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