The White House budget office on Tuesday ordered a pause on federal financial assistance, including grants, loans, and other payments. The initial announcement caused widespread fear and uncertainty, but as the day progressed, further clarifications narrowed the scope of the disruption.
In an FAQ shared by the Office of Management and Budget (OMB), it was clarified that programs providing direct benefits to individuals are not subject to the pause. The order is limited to “programs, projects, and activities implicated by the President’s Executive Orders,” including initiatives related to Diversity, Equity, and Inclusion (DEI), the Green New Deal, and funding for nongovernmental organizations deemed contrary to national interests.
Mendocino County CEO Darcie Antle expressed initial concern, noting that federal funding supports numerous county programs. However, the clarification provided some reassurance that the impact would be limited. Antle stated that she would continue monitoring the situation for potential updates.
The city of Ukiah appears to face limited impacts. Assistant City Manager Shannon Riley explained the city relies on federal funds for transportation projects and housing grants through the U.S. Department of Housing and Urban Development, including funds are funneled through state agencies. “Whether the state will continue to make reimbursement payments in light of this news is yet to be determined,” Riley said.
Nonprofits in Mendocino County are also preparing for potential disruptions. Amanda Friscia, executive director of the Mendo Food Network, noted that while the food bank receives federal funding, the organization is taking steps to prepare for any funding pauses. “There’s no reason to panic,” she said, adding that they are closely monitoring developments.
Congressman Jared Huffman, who represents Mendocino County, sharply criticized the move, calling it an attempt by the former president to consolidate power. “With this one memo, Trump is sidelining Congress and placing supreme authority over most of the federal budget and bureaucracy in the hands of Russ Vought – the principal architect of Project 2025,” Huffman said, referencing the controversial initiative led by the former OMB director.
California Attorney General Rob Bonta joined forces 23 attorneys general, including New York Attorney General Letitia James, to challenge the directive. The attorneys general sought a temporary restraining order to block the order from taking effect, citing immediate harm to the residents of their states.
Separately, a federal judge in Washington, DC issued a temporary restraining order that blocked part of the directive. U.S. District Judge Loren AliKhan ordered the Trump administration not to block "open awards," or funds that were already slated to be disbursed, until at least Feb. 3.