BALTIMORE — Maryland Democratic leaders have been critical of a January 27 memo issued by President Donald Trump's Office of Budget and Management (OMB) they claim ordered a halt in federal financial assistance.
Like all county and local governments in the country, Maryland relies on annual federal grants and loans to fund various subsidized programs, meant often times for lower income citizens.
Despite the memo specifically stating the pause would "not include assistance provided directly to individuals," Maryland Governor Wes Moore and Baltimore Mayor Brandon Scott were among many accusing the Trump administration of causing "instability and chaos."
Moore suggested the memo "could potentially cost jobs, raise prices, and stifle economic growth in Maryland," while Scott insisted the order was both "illegal and politically-motivated," putting "billions of dollars destined for [Baltimore] at risk."
The outrage led to nearly two dozen states and non-profits filing a lawsuit.
In response, the White House reiterated welfare programs such as SNAP, Social Security and Medicaid would not be impacted. Officials also cited the memo's original language that stated "OMB may grant exceptions allowing Federal agencies to issue new awards or take other actions on a case-by-case basis."
A federal judge in Washington D.C., however, still sided against the government, ordering a temporary stop to the freeze.
The administration was ordered to resume already appropriated funds through February 3.
Grants yet to be allocated were not included in the ruling, meaning any future funding could be redirected.
OMB ultimately rescinded the memo, but President Donald Trump said his executive orders to review federal funding remain in full effect.
"The Executive Orders issued by the President on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments."
Even though OMB rescinded the memo, area non-profits on Thursday continued expressing concern, while at the same time the Mayor’s Office of Homeless Services Baltimore City Continuum of Care announced a $33.1 million award from the U.S. Department of Housing & Urban Development (HUD).
“We are grateful to our federal partners for understanding this program is essential to our community and enables us to provide vital support to our most vulnerable population in Baltimore City,” said Mayor's Office of Homeless Services Executive Director Ernestina Simmons, in a press release. “We are thankful that this award includes a cost of living adjustment which will strengthen our service providers ability to offer a competitive salary to their staff who are critical to serving clients."
“We are so thankful for the HUD CoC Program funding—this is a huge deal for Baltimore,” added Baltimore City Continuum of Care (CoC) Chair Tara Taylor. “This support helps us provide safe housing and critical services to people experiencing homelessness, making a real difference in building a stronger, more equitable community.”
HUD also awarded tens-of-millions to other non-profits throughout the state, totaling $78,754,682.
TheVA issued a response to the memo as well saying all 44 of its financial assistance programs will continue uninterrupted.
As for the judge's orders, a follow-up hearing is scheduled for Monday.
