‘Massive confusion’: Nevada officials worry over looming federal funding pauses

Nevada elected officials and advocates raised alarms Tuesday following the Trump Administration’s pause on federal funding for grant, loan and federal financial assistance programs implicated by recent executive orders.

A federal judge temporarily blocked Trump’s push Tuesday afternoon, though some leaders worry the funding freezes on federal grants and funding will jeopardize services many Nevadans use — if the plan moves forward.

Trump Administration calls for funding pause

On Monday, President Donald Trump’s acting director of the Office of Management and Budget sent a memo requiring federal agencies to identify and review federal financial assistance programs, projects and activities “that may be implicated by any of the President’s executive orders” — citing specific orders, including ones on foreign aid, energy and diversity, equity and inclusion programs.

“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” the memo reads.

The memo said in the interim, federal agencies “must temporarily pause” all activities that might be implicated by the executive orders, “including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology and the green new deal.”

Sowing confusion

Trump’s order, which was set to go into effect 2 p.m. Tuesday, was met with confusion across the country and in Nevada, where leaders worried about the status of funding for a variety of services with federal funds. Judge Loren AliKhan’s administrative stay pauses the freeze until Monday.

Sen. Catherine Cortez Masto, D-Nevada, said Tuesday she heard from Nevadans worried about accessing Medicaid and VA benefits, as well as concerns about law enforcement funding, housing assistance, Meals on Wheels and Head Start, a program for early learning and development.

Nevada’s Democratic legislative leaders, Senate Majority Leader Nicole Cannizzaro and Assembly Speaker Steve Yeager, said the freeze could impact Nevada’s state budget, as federal funding accounts for more than one-third of Nevada’s budget. It also funds services by local governments, the court system and local nonprofits.

“Trump’s funding freeze will cause massive confusion for Nevada families, delay delivery of vital services in health care and education, and could plunge our state budget into further chaos,” the legislative leaders said in the Tuesday morning statement.

Following the federal judge’s temporary block, Cannizzaro accused the Trump administration of reversing itself and saying the freeze doesn’t apply to as many programs vital to Nevadans. She called the judge’s decision a “temporary victory” and claimed Republicans in D.C. intend to target programs like food stamps and Medicaid.

The directive has already led to some questions from local education officials. The Clark County School District said it was seeking “further clarity on the language contained in the memo” from Trump’s budget office.

“Based on current information, we do not anticipate an immediate interruption to District programs and students’ services,” according to a Tuesday statement. “As we learn more about the impacts of this decision, we will inform our employees, families, and the community.”

Cannizzaro and Yeager urged Republican Gov. Joe Lombardo’s office to demand answers from the federal government and to call on reversing the decision.

Governor’s office on the lookout

Lombardo’s office said it is in communication with the White House and will participate in a larger meeting with the Office of Management and Budget to discuss the potential impacts to state agencies.

The office highlighted those programs with direct benefits to Nevadans such as Medicaid, Medicare, SNAP and Head Start, will not see interruptions.

“Despite the shameless political theater on this issue, the Office of the Governor will continue to provide state agencies and Nevadans with timely, accurate and correct information,” the governor’s office said in the statement.

A spokesperson for Rep. Mark Amodei, R-Nevada, said the office is engaged in ensuring scheduled payments like Medicaid and education programs are still flowing.

“We’re confident that they are, but that’s where the focus is right now,” Amodei Communications Director Carrie Kwarcinski, said in an email.

Rep. Susie Lee, D-Nevada, expressed concern that hospitals and health care providers will be forced to discontinue services, and federally funded infrastructure projects will halt. She also warned that people won’t get the food they need, and federal research into cancer treatment and cures will also pause, she said.

“All of this is just a fraction of what could be affected by Trump’s order,” Lee said. “It’s not just a presidential power grab – it’s plain wrong.”

National outlets reported Tuesday that states’ Medicaid payments were paused. A spokesperson for the Nevada Department of Health and Human Services said the agency was “reviewing funding sources and evaluating the potential impact of the federal grant and loan pause on programs,” but did not specify whether it still had access to funds.

Contact Jessica Hill at jehill@reviewjournal.com and McKenna Ross at mross@reviewjournal.com. Follow @jess_hillyeah and @mckenna_ross_ on X.

Katie Futterman contributed to this report.