This is a developing story. It was last updated on Jan. 29 at 3:13 p.m.
Some Western North Carolina officials say they were confused by and concerned President Donald Trump’s attempted freeze on federal grant spending would hurt local programs, especially ones related to Hurricane Helene recovery.
The Trump administration announced a temporary freeze — which a judge on Tuesday stopped — of grants, loans and other federal funding. A group of non-profit organizations and some state attorneys general filed a legal challenge.
By Wednesday afternoon, the White House itself curbed its attempt at immediate cuts but political observers largely expect Trump’s team will continue with slashes to some federal spending.
When a now-rescinded two-page memorandum leaked Monday, it appeared to impact a sweeping number of sectors or programs that benefit from federal funding, including education, natural disaster relief, public housing assistance and health care. Two noted exceptions were Medicare and Social Security benefits, according to the memo.
Before the judge’s ruling to block the funding freeze, North Carolina Gov. Josh Stein wrote on X that he was “concerned that freezing federal funding will hurt North Carolinians, especially those recovering in WNC.”
“My office is currently reviewing and seeking clarity about what OMB’s order to freeze federal grants means for our state. We are also working with federal partners to ensure people in WNC get the support they need,” he said.
In a phone call Tuesday, Asheville Mayor Esther Manheimer told BPR that this is “a new experience” for her. “I don’t think anyone knows what this memorandum means and as a community we're all struggling to figure it out,” she said.
Manheimer said she had been communicating with other mayors and lawmakers all day Tuesday and that “frankly, all communities are doing this right now.”
“It is our sincere hope that this will not affect individual assistance to hurricane victims or our effort to rebuild after the hurricane,” she added.
BPR reached out to representatives from the City of Asheville and Buncombe County for comment.
The city shared the following statement on Tuesday:
“We are aware of the memo from the federal Office of Management and Budget (OMB) that takes effect tonight at 5 p.m. The federal government has until February 10 to identify the impacts of this order on funding grants and programs. As additional information is made available, the City will be able to have a better understanding of the implications this memo will have on our community and continued Helene recovery efforts. We hope that the critical federal assistance for disaster response and recovery, particularly related to Tropical Storm Helene, will be exempted from the pause of federal financial assistance.”
Buncombe County spokesperson Lillian Govus issued the following statement on Tuesday evening.
"Our budget, grants, human resources, and legal teams are working to understand what this pause in federal funding means for Buncombe County County operations and how we serve our community. While we don't know the full impact, we do know that key human services like Social Security, SNAP, Medicaid, and Medicare will continue uninterrupted. As soon as we have additional information, we will share that with our employees, our partners, and our community."
White House officials on Wednesday said the Trump administration still intends to enact some funding changes in line with previous executive orders. To that end, the memo said the freeze aimed to eliminate federal funding for “Marxist equity, transgenderism, and green new deal social engineering policies.” But it failed to specify which programs qualify under those categories.
Federal agencies were tasked with submitting by Feb. 10 detailed information to the federal Office of Management and Budget on their affected programs and initiatives. Now, White House officials say all agencies must review their programs in relation to recent executive orders and consult with department-specific attorneys on whether program or funding changes are needed to comply with Trump’s directives.
