Federal Funding Freeze Memo Rescinded, Questions Linger

This week, President Donald Trump’s administration introduced then rescinded a memo freezing trillions of dollars in federal funding.

At his press conference on Tuesday, Governor Patrick Morrisey said his administration was planning to talk to the Trump administration about the freeze and review of federal funds. Morrisey said federal funds make up almost half of state revenue.

The freeze was initially announced in an internal memo on Monday, leading to widespread confusion ahead of a 5 p.m. Tuesday deadline for the freeze to take effect. However, a federal judge paused the freeze late Tuesday afternoon.

Then Wednesday afternoon, the Trump administration rescinded the memo. A review of federal funds for compliance with Trump’s recent executive orders can still continue, and confusion lingers after Trump’s Press Secretary Karoline Leavitt said the freeze itself was not rescinded.

State Medicaid portals were temporarily unavailable on Tuesday but have since been restored.

“The West Virginia Department of Human Services is aware of the recent federal funding freeze and continues monitoring potential impacts on our programs,” Communications Specialist Angel Hightower wrote to in a Wednesday email to WVPB at 1:25 p.m. “At this time, our financial processes are operational.”

According to a recent Pew study, federal funds cover over 80% of West Virginia’s Medicaid costs.

Federal Funding Freeze Creates Uncertainty, Concern For Local Educators

It is unclear what local programs will be impacted by the federal funding freeze.

A federal funding freeze has left many scrambling for answers. 

The freeze was first outlined in one of President Donald Trump’s inauguration day executive orders. But a White House memorandum released Monday orders federal agencies to temporarily halt  “all activities related to obligation or disbursement of all federal financial assistance” starting at 5 p.m. Tuesday, Jan. 28. 

West Virginia received more than $7 billion in federal funds for fiscal year 2021, the most recent year data is available. According to analysis by the data nonprofit USAFacts, almost 9% of that money – more than $600 million – went to the state’s schools and other educational programs.

Kristie Skidmore, president of the American Federation of Teachers-West Virginia (AFT-WV), said it is unclear how the payment stop will impact workers paid through federal programs ranging from Title I to Head Start. 

“I’ve had teachers contacting me today that are paid through federal programs saying ‘How’s this affect me?’ and I just can’t answer their questions,” Skidmore said. “There are still a lot of unknowns, but what we do know is that it is creating some panic, some confusion and chaos in the lives of our working families.” 

Initial analysis indicates that programs like Title I, which distributes its funds months ahead of school semesters, would not be immediately affected by the freeze, but Skidmore said the fate of the federally funded school meal programs like the National Free Lunch Program are also unclear at this time.

“We also know that our students are fed with federal funds in our schools, so that’s a concern at this time as well,” she said.

Title I aims to close educational achievement gaps by allocating federal funds to schools with a high percentage of low-income students. More than half of West Virginia schools qualified for Title I funding in the 2021-22 school year, and the state received more than $60 million from the program.  

The Head Start program, which provides early education and comprehensive services to children and families in greatest need, provided more than $80 million to West Virginia in fiscal year 2024. 

Federal agencies that provide Federal financial assistance now have until Feb. 7 to complete a spreadsheet asking questions such as:

  • Does this program provide Federal funding to nongovernmental organizations supporting or providing services, either directly or indirectly, to removable or illegal aliens?
  • Does this program promote gender ideology?
  • Does this program promote or support in any way abortion or other related activities identified in the Hyde Amendment? 
  • Does this program support any activities that must not be supported based on executive orders issued on or after January 20, 2025 (including executive orders released following the dissemination of this spreadsheet)?

Morrisey Breaks Down Budget Gaps, Will ‘Try To Unpack’ Trump Administration’s Federal Funding Freeze

At Tuesday’s press conference, Gov. Patrick Morrisey started writing budget lines items on a whiteboard: $67 million to maintain PEIA, even with recent premium, copay, and deductible increases; and $153 for state Medicaid match previously funded with one-time funds. In the face of costs like those, Morrisey said that “third grade math would understand” his administration’s upcoming budget proposals.

“We’re meeting with all of our cabinet secretaries to discuss the budget,” Morrisey said. “Yesterday, we spent most of the day doing that going line by line, and this is the first time I think you’ve seen that level of activity in a while.”

During his first week in office, Morrisey outlined a projected $400 million budget deficit for the upcoming fiscal year – a stark contrast to the fiscal health outgoing governor Sen. Jim Justice projected at the end of his term.

Those budget issues come after years of state tax cuts and economic policy passed without long-term fiscal projections. Morrisey said he would release six-year projections alongside his proposed budget on Feb. 12, the first day of the legislative session.

“Number one, these are all things we’ve inherited,” Morrisey said. “We’re going to overcome our challenges. We are going to be that shining state in the mountains, but we’re going to have to change how we do things.”

Morrisey said the solution will come in the form of structural budget cuts, continuing with his aim of “rightsizing” and cutting down on government size.

“I want to be really clear, there will be no new taxes in our budget, none, period,” Morrisey said. “I’m not looking to increase taxes.”

The state’s budget issues come during a year when pandemic-era funds are already lapsing. Then, this week the Trump administration announced a freeze on continued disbursement of many federal funds, effective 5 p.m. Tuesdayday, with a reevaluation of program funding to follow.

Morrisey acknowledged federal funds make up almost half of West Virginia’s state revenue, estimating $19.9 billion in total.

We’re going to try to unpack that and talk with the Trump administration about that,” Morrisey said.

Morrisey also rounded out his cabinet by naming Ryan Kennedy Secretary of Department of Veterans Assistance, Jim Mitchell superintendent of the state police, and Jim Seward as Adjutant General – who will now also oversee the Department of Homeland Security.

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