Illinois organizations left in limbo amid possible federal funding freeze by Trump administration
CHICAGO (WLS) -- The confusion over whether or not federal grants and loans could still be frozen or taken away is causing concern for Illinois nonprofits that rely on the money.
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Less than 48 hours after signaling a sweeping federal funding freeze, the Office of Management and Budget rescinded the original memo. However, the Trump administration remains adamant the plan for a freeze is still on, causing even more confusion and whiplash for the millions of Americans who rely on federal programs.
"Every single day, we're now putting America first and fighting to get the most out of every single tax dollar for our great citizens," President Donald Trump said.
On Tuesday, a federal judge temporarily blocked the freeze. Separately, Illinois joined 21 other states and Washington D.C. to sue the Trump administration. In a hearing in that case, another federal judge stopped short of entering the temporary restraining order because of the rapidly changing circumstances.
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Harold Krent, a professor at Chicago-Kent College of Law said he expects the cases to continue despite the Trump administration's rescission.
"Because you don't know what's going to happen a week from today, three weeks from today, or three months," Krent said. "And certainly, in another context, the Trump administration may decide to impound funds that have been already allocated by Congress and cause the same kind of havoc that we've seen over the last couple of days."
Meanwhile, organizations that rely on federal funding in Illinois are paying close attention to President Trump's every move.
What we don't know is, what happens next?... What are the long-term impacts on the social safety net?Jose Muñoz, La Casa Norte CEO
La Casa Norte serves youth and families confronting homelessness. CEO Jose Muñoz said for about 24 hours they could not draw down on any federal funds that support their programs.
"You can rescind the order, but you can't rescind the chaos that was created in the last 24 hours, not just for our organization, but for the whole system," Muñoz said.
Muñoz said the impact of a potential funding freeze absolutely trickles down to average people, many of whom rely on organizations like La Casa Norte to put food on the table.
"What we don't know is, what happens next?" Muñoz said. "Is it rescinded temporarily? Is it rescinded for the next few months? What are the long-term impacts on the social safety net? We don't know."
