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Mlive: Michigan Senate Democrats probe impact of federal funding freeze

March 05, 2025

Michigan Senate Democrats probe impact of federal funding freeze

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Uncertainty. Panic. Terror.

Those were the emotions described Wednesday by people who help Michigan’s most vulnerable and underserved populations after learning the Trump administration had frozen their federal funding earlier this year.

And while that federal freeze on disbursing federal grants and other financial assistance is still temporarily blocked by a federal judge, uncertainty remains.

“Thankfully, we regained access to our funds and we were able to reopen, but the terror of that moment has not left us,” Chanda Hillman, executive director and CEO of Flowers Early Learning, told state lawmakers.

Michigan Senate Democrats held a hearing Wednesday, March 5, to take testimony from disability advocates, community health clinic leaders, early childhood education program leaders and others on how they were impacted by President Donald Trump’s funding freeze.

A number of people testified about the chaos caused by the Jan. 27 memo directing federal agencies to pause federal grant funding. For many who spoke, federal grant funding is a primary or major source of their operating budget.

The freeze has shaken confidence in reliance on federal funds, and some organizations are considering scaling back services or closing locations due to the uncertainty.

While most testified they are able to access these guaranteed funds, some said funds are still being withheld.

Federal grant dollars fund a wide range of services in Michigan.

“When the news broke about the freezes, we immediately heard from head start programs, meal programs for seniors, services that support immigrants, homeless shelters, veterans programs -- more specifically those helping with housing and accessing veteran benefits such as healthcare -- domestic violence shelters, human trafficking survivors, farmland and farming projects and others that protect our natural resources, just to name a few,” said Kelly Kuhn, president and CEO of the Michigan Nonprofit Association.

Kuhn said 11% of Michigan’s workforce is employed by nonprofits that serve every county in the state, from the rural areas to the urban.

Most of these nonprofits, her organization estimates, cannot survive a federal funding freeze or pause that lasts between three and six months.

“They are addressing issues that impact families, children, seniors, veterans and mentally and developmentally disabled individuals,” Kuhn said.

Read the full article here.

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