A federal freeze of grant funding is creating confusion in Oklahoma’s non-profit sector, tribal nations and state government agencies.
The White House’s Office of Management and Budget released a memo Monday night temporarily suspending all federal financial assistance. The memo said the pause would start Tuesday afternoon. But just minutes before it was supposed to go into effect, a judge issued an injunction temporarily blocking the pause at least until a hearing scheduled for Monday.
“The reason for this is to ensure that every penny that is going out the door is not conflicting with the executive orders and actions that this president has taken,” White House Press Secretary Karoline Leavitt said at a media briefing Tuesday.
The memo has stirred confusion about which programs would be impacted. In Oklahoma, the move could affect state agencies, nonprofits, universities and other federally funded entities.
“The executive order pausing federal grants was hurried and sloppy,” Shiloh Kantz, Executive Director of the Oklahoma Policy Institute, said in a statement. “This is unacceptable when it risks billions of federal dollars that everyday Oklahomans rely on for everything from filling prescriptions to getting school lunches.”
Leavitt clarified that the pause would not directly affect federal assistance for individuals, such as programs like Social Security, SNAP, and Medicare. A follow-up memo from the White House said funds for small businesses and farmers, Pell grants, Head Start programs and rental assistance would not be paused.
The memo highlights a few priorities for federal funding after the pause: “focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending ‘wokeness’ and the weaponization of government, promoting efficiency in government, and Making America Healthy Again.”
It’s also unclear how long the pause will last, but the memo calls it “temporary.” Federal agencies have been asked to submit reports on their use of funds for review by Feb. 10.
Rebecca Thiess, manager at The Pew Charitable Trusts, said in a statement federal funding helps states pay for public services like health care, education and infrastructure.
“States are currently facing tighter budgets than in recent years due to the expiration of federal pandemic aid and stagnating tax collections, among other challenges,” Thiess said.
In 2022, Oklahoma’s state government received 42.8% of its revenue from federal grants. With a total of $14.5 billion received, the state ranked 13th overall in the highest percentage of state revenue coming from the federal government, according to The Pew Charitable Trusts.
“As one of the nation’s poorest states, Oklahoma relies on the federal government and federal dollars,” Kantz said. “In fact, Oklahomans receive far more in federal support than we pay in. While we’re grateful the courts put a temporary block on this planned federal aid freeze, the actions signal grave concerns for our state moving forward.”
The pause wouldn’t just affect state agencies and nonprofits, Kantz said.
“It also disproportionately affects Tribal Nations, which rely on federal funds for essential needs stemming from the unique sovereign-to-sovereign obligations the U.S. has to Tribal Nations,” Kantz said.
Despite Oklahoma being one of the nation’s top federal dollars recipients, Rep. Tom Cole, R-Moore, said he approves of Trump’s use of executive orders to reverse the Biden-Harris agenda.
“Assessments that ensure agencies are abiding by recent directives reaffirm accountability across government,” Cole said in an email. “My office and I are working with the Administration on additional details, and I look forward to collaborating with President Trump in the coming months as we work to safeguard taxpayer dollars and deliver on the mandate of the American people.”
The memo follows dozens of executive orders signed by President Trump over the past week, including one that halted nearly all global health funding from the U.S. and threatens federally funded programs like PEPFAR.
The memo is already facing legal challenges. New York Attorney General Letitia James announced Tuesday afternoon that she and other Democratic attorneys general are filing a lawsuit to stop the Trump administration from enacting the pause, calling it unconstitutional.
A group of nonprofit organizations including the National Council of Nonprofits, American Public Health Association and the Main Street Alliance filed another lawsuit to stop the funding freeze.
“Given the few hours that remain before federal grantees are thrown into disarray, Plaintiffs file this Complaint and seek a temporary restraining order to maintain the status quo until the Court has an opportunity to more fully consider the illegality of OMB’s actions,” the suit reads.
U.S. District Court Judge Loren Alikhan granted that order and will hear more arguments next week.
Nonprofits
Though the memo explicitly discluded individual assistance for people, a significant chunk of federal funding goes toward organizations that provide direct services to Oklahoma communities.
That includes the Regional Food Bank of Oklahoma, Cathy Nestlen, a food bank spokesperson, said in a statement.
“The Regional Food Bank of Oklahoma is monitoring the administration’s freeze on federal funding that goes into effect later today,” she said. “We are in contact with our federal delegation and our state agency partners to understand the impact of the freeze on our work and the fellow Oklahomans we serve.”
The Regional Food Bank will always stand with our neighbors experiencing food insecurity. Together, with our partners and supporters, we will ensure they have access to the food they need.”
Like Oklahoma City’s Homeless Alliance, homeless assistance providers also expressed uncertainty about what the funding freeze could mean for their efforts.
“Denial of these funds will undoubtedly only exacerbate the issues facing our nation – including homelessness,” said Homeless Alliance President Megan Mueller in a statement. “At this point, there are more questions than answers.”
Tribal nations
The memo does not explicitly mention tribal nations, though they receive billions to support their communities and tribal governments.
The United States has a federal trust responsibility to more than 570 tribal nations, including 38 tribes in Oklahoma. That means they are legally obligated to safeguard tribal lands, resources and assets by supporting Indigenous sovereignty.
The Muscogee Nation’s response to the federal funding freeze pointed to this trust responsibility.
“Our team is actively communicating with all federal partners and counterparts to better understand the administration’s process and to advocate for the best interests of Muscogee Nation citizens,” said Muscogee Nation Principal Chief David Hill in a statement. “It is important to note that the OMB order recognizes a distinction between non-statutory funding and other statutory obligations such as the federal trust responsibility to tribal nations.”
Cherokee officials said they are monitoring the situation, but some tribal departments have already secured federal funding for the year ahead.
“Today, the Cherokee Nation is evaluating its programs for any potential impacts related to the President’s memorandum pausing federal grants and loans. Many of our departments, including our health facilities and housing programs are generally forward funded and operating as normal, and we are continuing to closely follow any developments that may impact our Cherokee Nation citizens and services,” Cherokee Nation Chief of Staff Corey Bunch said in a statement.
Like the Cherokee Nation, Otoe-Missouria Tribe Chairman John Shotton said the tribe could continue operations as usual until federal agencies offer more clarity on the path ahead.
“We are thankful we have the financial ability to sustain our programs while we determine the next steps,” Shotton said.
A spokesperson from the Caddo Nation told KOSU they are figuring out how this will impact them and mentioned that a gathering of seven neighboring tribes will convene on Thursday to discuss the implications further.
Osage Nation Principal Chief Standing Bear said the Osage Nation is working with other tribes to continue serving citizens and staying alert to the issue.
State agencies and universities
State agencies and public education institutions are still working to understand the implications of this memo. Billions of dollars pour into the state annually for government services from Oklahoma to its citizens.
The Oklahoma Health Care Authority (OHCA) administers Oklahoma Medicaid benefits. OHCA CEO Ellen Buettner said during the authority’s January state senate budget hearing the agency facilitates insurance services for over 1 million Oklahomans, including children, pregnant women and low-income adults.
This is a state-federal partnership with the Centers for Medicare and Medicaid Services (CMS).
An OHCA spokesperson said in a statement the Payment Management Services portal, which is used by CMS to process federal grant payments, was temporarily unavailable to state Medicaid programs nationwide. The spokesperson said it is now accessible by OHCA.
They also said Oklahoma Medicaid member and provider portals are operating as normal.
“OHCA is evaluating the impact of the executive order and does not expect significant changes to eligibility or benefits based on recent guidance from the White House,” the spokesperson said. “OHCA remains dedicated to delivering quality health care to Oklahomans and will provide direct communication to members and providers if any changes arise.”
Oklahoma State University issued an official statement saying it “closely monitors and engages on issues related to student success, including the impacts and effects of government actions at all levels.” The university clarified that financial aid for the Spring 2025 semester has already been disbursed to students.
For now, OSU researchers should proceed with business as usual, according to an email OSU Vice-President of Research Kenneth Sewell sent to grant-funded university employees.
“Perhaps the most important thing to know at this point is that NO ONE yet knows the answers to the vast majority of questions these actions have provoked,” Sewell wrote. “Most of the federal agencies themselves are scrambling to understand how they will comply with these directives.”
The University of Oklahoma released a similar letter from President Joe Harroz.
“We are committed to serving the needs of our students and conducting research that benefits us all,” Harroz wrote. “We will continue to engage with all state and federal agencies and key stakeholders to gain clarity on the scope and impact of these initial executive orders and the Executive Branch’s directives. Thank you in advance for your patience as we navigate these early days.”
The Oklahoma Department of Agriculture Food and Forestry has multiple federal grant programs it administers. In an email, JanLee Rowlett, the department's deputy commissioner, said that ODAFF's priorities will be serving Oklahomans and the state’s agriculture industry.
“We are working to learn more about the impacts of the recently announced pause on federal disbursements and develop a plan to work with the federal administration to continue services and meet our shared goals,” Rowlett said.
The Oklahoma Broadband Office doles out hundreds of millions of dollars in federal funds to Oklahoma communities.
“We are aware of the Presidential Order to pause federal grants,” OBO spokesperson Tim Allen said in an email. “Our office will release information as it becomes available.”
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