Pelosi Warns of More Budget Cuts Despite Temporary Stay of Trump’s Funding Order

President Donald Trump issued an executive order earlier this week instructing federal agencies to stop the disbursement of federal grants and loans. His administration rescinded the controversial directive two days later.

Trump’s order frustrated state officials, who were concerned that it may jeopardize federal assistance programs such as Medicare and Social Security. Nonprofit organizations, many of which rely heavily on federal grants to subsidize their services, also expressed concern over what the order could mean for workers and the communities they care for.

Former House Speaker Nancy Pelosi confirmed that the funding freeze is inactive for now but said that the “worst is yet to come.” In a Thursday interview with KQED, she said the current administration fully intends to make budget cuts that will hurt nonprofits and assistance programs.

“We have this pause right now, and it shows how wrong they were and the weak ground they were on to do this,” Pelosi said. “But make no mistake … they believe that the executive branch can have discretion over spending or not (spending) money definitely voted by Congress.”

A federal judge in Washington issued a temporary stay on Trump’s directive through Monday after several nonprofits filed a joint lawsuit. Another lawsuit was filed by a group of states, including California.

Conflicting announcements this week by the Office of Management and Budget and White House Press Secretary Karoline Leavitt have left organizations and communities that depend on the funding confused.

“I don’t know whether they just don’t have experience with people who have needs or they just don’t care,” Pelosi said in reference to the Trump administration. “Whatever it is, we don’t agonize. We organize, and we’re going to fight.”

Pelosi said she’s spoken with constituents who emphasized the importance of federally funded programs. Parents who use food stamps to feed their children, veterans who rely on assistance from the Department of Veteran Affairs and patients with disabilities on Medicaid are among the people who would be affected by Trump’s order, Pelosi said.

“I was frightened for myself … but also for other people with disabilities, for the elderly and also for the workers who do so much for us,” said Sascha Bittner, a member of the National Council on Disability.

Rick Cohen, a spokesperson for the National Council of Nonprofits, said nonprofit organizations are in a vulnerable position because the work continues even when funding from the government is on pause.

“There isn’t anywhere else for some people to go,” Cohen said. “Even a short pause in funding can be catastrophic. It’s not a hyperbole to say that it could cost lives.”

Workers who operate emergency helplines or who respond to crises like wildfires have to keep working because the services they provide are necessary, Cohen said. However, when nonprofits cannot pay them because their organizations lack the funds, workers will eventually need to find employment elsewhere.

“A lot of people don’t realize that nonprofits are the third largest employer in the country,” Cohen said. “We’re not just a volunteer sector, and so you’ll get all of these ripple effects.”

The National Council of Nonprofits, a network of more than 30,000 organizations across the country, was one of several nonprofits that filed a joint suit against Trump’s directive.

Cohen said many organizations are still unable to access the federal funding portals they use to request payment despite the judge’s order. Others have successfully put in funding requests only to be informed that their applications are under review. He said organizers and community members feel lost and are hoping that the courts will offer some clarity.

“Our message is pretty simple,” Cohen said. “We are the people who are out there every day doing everything we can to help as many people in communities across the country. We may not be seen, but the effects will be if too much is cut.”

KQED’s Scott Shafer contributed to this report.