Trump grant freeze: Immediate impact on the most vulnerable people in our community
For immediate release
Date: Jan. 28, 2025
Contact: Lisa Demer, external relations director, 907-312-9547
The grant freeze ordered by the Trump Administration could have an immediate impact on those experiencing homelessness, those who rely on housing subsidies and the programs that serve them.
Life-saving programs that serve the most vulnerable Alaskans now are at great risk. In the short term, homeless services program staff — many of whom face homelessness and housing insecurity themselves — may lose pay. Services may pause for lack of funding. With rent coming due for so many just days from now, rent checks to landlords feel uncertain.
Late Monday, the White House directed the Office of Management and Budget (OMB) to order all federal agencies to temporarily block activities associated with the obligation and disbursement of all grants, loans, and other financial assistance.
“It is unprecedented that a president is freezing dollars that have been congressionally authorized and approved by the prior administration,” said Meg Zaletel, executive director of the Anchorage Coalition to End Homelessness.
ACEH is the lead agency for the Anchorage Continuum of Care network of nonprofit organizations that receive federal funds to serve those experiencing homelessness. The Coalition is reviewing the impacts, and much is unknown. The Coalition receives federal funds for several projects including the Coordinated Entry program in Anchorage. It results in a by-name list of those who are unhoused prioritized by vulnerability.
Will rents be paid for federal voucher holders? Will operations continue for organizations that operate permanent supported housing and rapid rehousing, two federally funded programs that serve people who have experienced homelessness? Those questions had not been answered as of Tuesday morning.
News of the freeze emerged just as an unfunded, federally mandated count of those who are unhoused was underway. In Anchorage, teams started the count early Tuesday morning. Among the first people counted were those huddled under blankets in downtown Anchorage on an icy 18-degree morning. The U.S. Veteran’s Administration had committed to be a key partner but was not able to take part on Tuesday.
Before the freeze’s scheduled start of 1 p.m. Alaska time Tuesday, the apparatus that supports federal funding stopped working. Nonprofits in Alaska were locked out of the system that the U.S. Department of Housing and Urban Development uses to pay grants. As of mid-morning in Alaska, the system was temporarily back up and nonprofits were urged to draw down funds they are eligible to receive.
Even if legal challenges reverse the drastic grant freeze, the Trump Administration appears bent on erasing all efforts to prioritize services for those whose communities have been most impacted.
ACEH is keeping organizations in the Anchorage Continuum of Care informed and is working closely with our colleagues at the Alaska Coalition on Housing and Homelessness on next steps.
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