Kentucky lawmakers react to pause on federal grants, loans by Trump administration

Several Kentucky lawmakers and organizations are expressing concern over the Trump administration’s decision to pause federal grants, loans and other financial assistance programs.

On Monday, the Office of Management and Budget issued an internal memo directing agencies to pause federal grants so the administration can review them and determine whether they fit the president’s priorities. The suspension goes into effect at 5 p.m. Tuesday.

It remains unclear what funding will be halted, though the memo exempts assistance received directly by individuals, including Medicare and Social Security benefits.

Here’s what Kentucky officials are saying about the freeze and its potential impacts on the state.

Gov. Andy Beshear

In a statement to The Courier Journal, Democratic Gov. Andy Beshear said he is concerned about the legality and consequence’s of Trump’s decision.

“I have concerns about both the legality of the President attempting to stop or freeze laws explicitly passed by Congress, as well as the damage this action will cause to farmers, small-business owners and struggling families who are receiving important job training or health care services to improve the lives of their children,” Beshear said.

More: Beshear shares concerns over Trump’s withdrawal from World Health Organization

U.S. Sen. Mitch McConnell

In a statement, a spokesperson for Republican Sen. Mitch McConnell said longtime politician will continue to advocate for the “economic interests of Kentucky.”

“New administrations typically take steps to review federal funding allocated to grant recipients,” the spokesperson said. “Sen. McConnell will continue to advocate for the economic interests of Kentucky, and ensure that every tax dollar is spent responsibly.”

Louisville Mayor Craig Greenberg

At a press conference Tuesday, Louisville Mayor Craig Greenberg said his team is working to understand the magnitude of the freeze and how it will impact Louisville.

“For example, 90% of Louisville Metro Housing Authority is funded by the federal government. They serve 30,000 residents in our community. They have 90 days of cash available. That’s the standard that they have for their operations,” Greenberg said. “That’s just one of many examples, beyond just the traditional grants that come from the federal government. So maintaining the flow of federal funds into our city to help individuals is critically important.”

Greenberg added “we’ll be continuing to advocate for that freeze to end.”

Kentucky Sen. Cassie Chambers Armstrong

Democratic state Sen. Cassie Chambers Armstrong, who represents part of Louisville, said in a statement she is “extremely troubled” with Trump’s decision to freeze federal assistance, particularly when it comes to childcare support for low-income families.

“Thousands of working families in Kentucky depend on this program to afford care for their children. Without childcare, these parents cannot go to work, which means they can’t support their family and can’t contribute to the workforce,” Chambers Armstrong said. “I have heard from people who are scared about this order and what it means for their family. I hope we can come together in a bipartisan effort to ensure that no family in Kentucky loses access to childcare because of this order.”

Jefferson County Public Schools

It is unclear how the pause could affect Jefferson County Public Schools, the state’s largest district, which receives federal funding for many different programs and student groups.

“We’re reviewing it,” spokesman Mark Hebert said Tuesday morning.

More: After transportation cuts, thousands fewer JCPS students apply to magnets. See the data

Kentucky Democratic Party

Kentucky Democratic Party Communications Director Jonathan Levin released a statement saying the freeze “will inflict unimaginable pain across our Commonwealth.”

“This sweeping freeze jeopardizes basic programs that Kentuckians depend on to survive,” Levin said. “Programs like LIHEAP, which keeps families warm during the winter, and SNAP, which helps them put food on their tables, as well as FEMA relief for our communities still recovering from tornadoes and flooding, are all at risk.”

“Kentuckians deserve stability and compassion, not this Republican-driven chaos that will inflict pain on our families.”

This story could be updated.

Reporters Eleanor McCrary and Krista Johnson contributed to this report. Reach reporter Hannah Pinski at hpinski@courier-journal.com or follow her on X, formerly known as Twitter, at @hannahpinski.

This article originally appeared on Louisville Courier Journal: Kentucky lawmakers react to pause on federal grants, loans

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