Concerns mount in Capital Region over federal funding freeze

SCHOHARIE COUNTY — At 7 a.m. on Tuesday, William Federice received an email from a colleague about a new pause on federal loans, grants and other funding programs from the Trump administration.

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That news was relevant because Federice chairs the Schoharie County Board of Supervisors. The rural government is relying on $30 million in grant funding from the federal government for a major broadband overhaul. As such, news of the directive raised some alarm bells.

“It’s very difficult to say, ‘Let’s embark on this and take a chance that we’re going to get the money,’” said Federice, a Republican. “I just can’t do that and I’m sure anybody else in my position would say the same thing.” The memorandum was originally set to go into full swing at 5 p.



m. Tuesday. However, it was blocked by U.

S. District Judge Loren L. Alikhan just moments before it would go into effect.

It’ll be frozen until Monday. While uncertain what the upcoming pause will impact, White House officials have made clear that it won’t have an impact on individual assistance programs such as food stamps, social security and student loans. The memorandum, which is believed to cover upwards of $3 trillion in funding, was pursued in an effort to review programs not aligned with the new populist administration’s agenda.

This includes diversity, equity and inclusion initiatives, along with “woke gender ideology, the Green New Deal” programs, according to a memo obtained by multiple news organizations. “I’m sure it is up to interpretation, but to my knowledge, we wouldn’t have anything that really fell into those categories,” said Fulton County Administrator Jon Stead. “Certainly we’ll keep an eye on it as more information comes out.

” The pause was being watched and even evaluated by government agencies across the greater Capital Region. Saratoga County, for example, has reached out to higher-up funding partners for more information. Federal coffers provide support for programs ranging from infrastructure to education.

Such dollars are administered by the state and passed down to counties, locales and nonprofits. Any reduction or delay in funding could become problematic, noted Schenectady County spokesperson Erin M. Laiacona.

“Schenectady County depends on state and federal grants to help fund many essential services, including those that are mandated,” she said. Before the judge’s decision, United Way of the Greater Capital Region President & CEO Peter Gannon said that he was talking to nonprofit officials throughout the day. The chapter provided grant funds to more than 50 nonprofit groups last year.

Gannon noted that the White House order came all the while charities are on the “fringes of survivability and shoe strings.” “Nobody knows what to make of it yet because there is so much uncertainty, but certainly everybody’s paying attention to it,” Gannon said. Along with concerns among recipients, the directive evoked outrage among state and federal Democratic politicians.

U.S. Rep.

Paul Tonko, D-Amsterdam, alleged that the move was unlawful while U.S. Rep.

Joshua Riley, D-Ithaca, described it as “complete bulls—.” New York Attorney General Letitia James, a longtime adversary of President Donald Trump, was among 22 top state prosecutors involved in a lawsuit against the order. Meanwhile, Gov.

Kathy Hochul — throughout the day — pressured GOP officials in the U.S. House of Representatives and Senate majority to urge against a freeze.

Of note, one of Hochul’s potential 2026 election rivals, Republican U.S. Rep.

Mike Lawler, sits in the House..