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Rapid Response Needed: Federal Grant Freeze by Trump’s Executive Orders

By Lisa Shipek

Many of you may be wondering how the Executive Orders of the Trump administration are impacting WMG. We were initially concerned that new grant revenue would be impacted by the Trump administration, however, the Executive Orders are impacting our funding now. 

The current reality creates uncertainty for our staff and programs. My number one priority is developing a rapid response plan to best protect our program work and care for our staff. Our community of supporters are critical to help us weather this storm. 

In mid-January, the Trump administration issued an Executive Order pausing all federal grants; however, a judge promptly overturned it that same week. 
What many people don’t know is that the Trump administration put a separate freeze on all disbursements of money from the Bipartisan Infrastructure Law (BIL) and Inflation Reduction Act (IRA), President Biden’s signature climate bills. This is what is impacting WMG right now. 

Currently, $381,356 of revenue from federal grant dollars included in our annual budget are frozen for disbursement because they are either BIL or IRA funded. In our multi-year grant contracts, we have almost 2 million dollars at stake. 

The grant funding covers a variety of WMG’s projects and initiatives both in our River Run Network and Community Conservation programs. Initiatives include our regional drought planning efforts, beaver-based river restoration projects, green infrastructure projects with underserved neighborhoods, and much more. 

We do not know when the freeze on disbursement will end, or if funds will be resumed. We do know Trump is working to freeze and pull back all Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL) funding that these grants are funded by. In January Federal agencies were directed to immediately pause the disbursement of funds appropriated and agencies have three months to report to the White House on whether the paused funds align with the President’s stated policy objectives. If the funds do not align, funds will not be distributed.

Our 2025 annual budget is 36% donations, 38% grants, and 26% fees for service. A big portion of our fees for service revenue is contracts funded by IRA and BIL grants with partners like the City of Tucson, City of Phoenix, and ASU.   

I am working with the board and staff to create a Rapid Response Financial Plan to ensure our programs can continue strong this year and next. WMG’s cash reserve is modest, and we do not have an investment account or endowment to depend on for major lost revenue. Therefore, we will need to start making adjustments immediately to reduce our risk and keep programs running.

How can you help? 

The good news is our work has always been powered by the community. With the backing of our communities, I expect WMG’s work to continue to be transformational for the watersheds we work in, and I’m hopeful local initiatives will emerge stronger from these trials. 

 


Articles to learn more:
Washington Post: Here’s who’s losing out as Trump freezes the Inflation Reduction Act
(Paywall free link)

BayNature: How Trump’s Attack on Environmental Programs Is Already Affecting Local Conservation Work