Here’s how a federal funding freeze could impact Fresno hospitals, Head Start, colleges
Organizations in the Fresno area that receive significant amounts of federal funding are grappling with how a potential federal funding freeze could impact them and the people they serve.
The Trump administration’s proposal to pause spending on federal grants has created mass confusion since it was introduced this week. A judge temporarily halted Trump’s executive order, and the White House rescinded the order Wednesday. It’s unclear whether Trump will pursue the funding freeze.
Still, such a freeze could have a considerable impact in Fresno County, which receives about $1.2 billion from the federal government. That’s about $1,143 for every man, woman and child in the county.
Certain direct payments to individuals, including programs such as Social Security or SNAP (Supplemental Nutrition Assistance Program) are not subject to the freeze, according to the White House Office of Management and Budget.
The Social Security Administration’s payments to recipients in Fresno County for the 2024-25 federal fiscal year that began Oct. 1 are expected to amount to more than $836 million by the end of September 2025. And the SNAP program from the U.S. Department of Agriculture provided more than $41.5 million to 115,000 Fresno County households in the first half of 2023, according to the most recently available data.
But other grants are less certain as a slew of federal departments strive to “align Federal spending and action with the will of the people as expressed through Presidential priorities,” according to a memo from acting OMB director Matthew Vaeth. The memo takes aim at “wokeness” and directs all federal agencies to ensure their assistance programs are “consistent with the President’s policies and requirements” and reverse what Vaeth described as “Marxist equity, transgenderism, and green new deal social engineering policies.”
The payment-freeze directive was to have taken effect Tuesday afternoon, but a federal judge issued an administrative stay that blocks the action until Feb. 3.
Grants this year to agencies and organizations in Fresno County add up to almost $248 million.
The city of Fresno is among the local agencies dealing with the uncertainty.
“Right now we are doing research to see what the impact will be,” said city spokesperson Sontaya Rose. “We are also trying to determine what the implication is from a cash flow perspective.”
USASpending.gov, an online database of contracts, grants and other government expenditures, indicates that Fresno is due to receive almost $5.8 million in federal grants, of which outlays amount to about $4.4 million.
Fresno County is in line for almost $6.4 million in federal grants this year, largely in Community Development Block Grants that can be applied to a wide range of needs.
But the largest amount of grant money for any government agency in the Fresno area is for the Fresno County Economic Opportunities Commission, which receives more than $188 million. Of that, about $183.4 million is for its early childhood education programs, Head Start and Early Head Start.
“At this time, we are awaiting further clarification and guidance from federal agencies,” the EOC said in a statement issued Tuesday, before the federal court stay. “Until then, our programs will continue operating, and we are focused on serving the community to the best of our ability.”
Among other sizable grant recipients are nonprofit health clinic operators including United Health Centers of the San Joaquin Valley, at about $88.6 million and Valley Health Team Inc. at more than $52 million. The Veterans Home of California - Fresno is listed with a grant of more than $50.5 million.
A representative for United Health Centers said its federal grant for covering uninsured or underinsured patients this year amounts to $13.25 million – an amount on which the organization draws each month. That’s far less than what’s shown in the government’s database.
At the State Center Community College District, which includes Fresno City College, Reedley College and Clovis Community College, Chancellor Carole Goldsmith addressed the uncertainty surrounding the freeze and what it could mean for students. The district is up for $750,000 in federal grants, not including Pell grants and other student aid for individual students.
“We are committed to working with state and federal officials to best understand the situation and advocate strongly for our students and colleges,” Goldsmith said in a statement shared with the district’s staff and students.
Goldsmith told students that “while this may sound concerning, we want to reassure you that your financial aid is still active and being provided as usual at this time.”
This story was originally published January 29, 2025 at 10:32 AM.
