Trump’s Funding Freeze Brings Chaos to North Carolina
Trump’s Executive Order Will Devastate Our Healthcare, Education, and Small Businesses
President Donald Trump’s recent executive order has stopped federal grants and loans, creating confusion and concern across the country. This decision affects trillions of dollars meant for important programs like healthcare, education, and disaster relief. The White House says this pause is needed to review spending and make sure it follows Trump’s new policies. However, no one knows which programs will restart or stay frozen. The Office of Management and Budget (OMB) has issued directives to federal agencies, requiring them to assess their programs and determine compliance with new executive orders. This has left many states, including North Carolina, uncertain how long the freeze will last and what services will be affected.
Democratic state attorneys general have already taken legal action. They argue that Trump does not have the power to withhold money that Congress has already approved. The U.S. Constitution grants Congress authority over government spending, and many see this freeze as an overreach of presidential power. Several states, including New York and California, have filed lawsuits to challenge the order, claiming it violates federal law. Even some Republicans in Congress are questioning this move, saying it could hurt communities that rely on federal aid. The backlash is growing as lawmakers from both parties push for clarity on what funding will be restored and when. North Carolina is monitoring the situation closely, as the freeze could have a major impact on the state’s economy and essential services.
North Carolina depends on federal funding for many essential services. Grants help pay for Medicaid, education, and rural development. Over a million people in the state rely on Medicaid, jointly funded by the federal and state governments. If funding delays continue, hospitals, clinics, and other healthcare providers may struggle to deliver care to low-income families. Similarly, federal funds support K-12 schools, Head Start programs, and Pell Grants for college students. Schools may face budget shortfalls without this money, affecting teachers, students, and infrastructure projects. The freeze also impacts rural development projects, including broadband expansion and small business grants critical to its many communities.
Past funding delays have already shown how damaging this can be. For example, previous government shutdowns and budget impasses have delayed payments for disaster recovery efforts following hurricanes and flooding. North Carolina, affected by natural disasters, relies heavily on federal aid for rebuilding efforts. If this freeze lasts too long, the state could face serious economic problems, particularly in rural areas where federal assistance is vital. Families, businesses, and local governments are all waiting to see what happens next, hoping for a quick resolution before the effects become more severe.
The Threat to Medicaid and Healthcare Access
The Medicaid freeze is already causing significant disruptions in North Carolina. The state’s Medicaid system serves over 2 million people, many of whom are low-income families, elderly individuals, and people with disabilities. Reports indicate that the online Medicaid payment portal, used by doctors and hospitals to receive reimbursements, has been shut down. Without access to these payments, healthcare providers may struggle to cover operating costs, forcing some clinics to cut services or shut down entirely. Rural healthcare providers already operating on thin margins are particularly at risk.
Hospitals and major healthcare institutions, including UNC Health and Duke Medical, rely on federal grants for research and patient care programs. The freeze delays critical funding for patient treatment, staffing, and medical research projects. Medical education programs at these institutions, which train future doctors and nurses, are also in jeopardy as federal funds are essential for their operation. Community health clinics, which serve uninsured and underinsured patients, face similar uncertainty, with many worried that a prolonged freeze will force them to reduce services or close entirely.
In addition to direct patient care, North Carolina has several major medical research institutions that depend on funding from the National Institutes of Health (NIH). This funding supports cancer, heart disease, and infectious diseases studies—research that could now be stalled or even canceled if the freeze continues. Without federal support, thousands of jobs in research institutions and laboratories across the state are at risk. The loss of funding could also weaken North Carolina’s position as a leader in biomedical research, potentially driving top scientists and medical professionals to other states with more stable funding.
The longer the freeze lasts, the greater the impact on the healthcare system. Patients, doctors, hospitals, and researchers are all feeling the strain, and the consequences could be severe without quick action to resolve the situation.
Education at Risk: Schools, Early Childhood Programs, and College Aid
The funding freeze is also threatening North Carolina’s education system. Programs that support early childhood education, K-12 schools, and higher education are all affected, creating uncertainty for students, teachers, and families across the state.
Head Start and Early Childhood Programs
Head Start centers across the state are struggling to stay open due to funding shortages. These centers provide essential preschool education for low-income families, helping children develop early learning skills before entering kindergarten. Without federal support, many Head Start locations may be forced to cut staff, reduce enrollment, or shut down entirely. This would leave working parents without affordable childcare options and could hinder early childhood development for thousands of children statewide.
Title I and School Nutrition Programs
Many public schools rely on federal Title I funding to support students from low-income families. This funding is used for classroom resources, teacher salaries, and student services. The freeze puts these programs at risk, forcing schools to find alternative funding sources or make brutal budget cuts. Additionally, school nutrition programs, including free breakfast and lunch initiatives, may be impacted, leaving many children without reliable meals during the school day. Local school districts are already under financial strain, and this disruption could make it even harder for them to meet student needs.
Higher Education and Student Financial Aid
While Pell Grants and federal student loans have not been directly affected, they remain under review, creating uncertainty for students relying on financial aid. North Carolina’s historically Black colleges and universities (HBCUs), which receive federal funding to support student success and campus improvements, are facing disbursement delays. Research grants for university programs across the state are also on hold, which could impact innovation and job opportunities for students and faculty. If the freeze continues, universities may be forced to raise tuition or cut academic programs to compensate for lost funding, placing additional burdens on students and families.
The effects of the funding freeze on education are far-reaching, impacting early learning, public schools, and higher education. Without federal support, students and educators across the state may face significant challenges in the months ahead.
Economic Consequences for Small Businesses and Rural Communities
The funding freeze also harms North Carolina’s economy, particularly in rural areas that rely on federal assistance.
Paused USDA and Small Business Grants
Rural communities depend on USDA funding for agriculture and economic development. Farmers cannot access essential grants and loan programs needed for crop production and farm expansion with the freeze in place. Small business loans, which help entrepreneurs and local businesses grow, are also at risk, creating economic uncertainty. Programs that support broadband expansion and farm assistance are now on hold, limiting growth opportunities in rural areas and threatening local economies.
Food Assistance Programs and Economic Strain
The freeze raises concerns about food security as funding for SNAP and WIC faces potential delays. These programs help low-income families afford groceries; any disruption could lead to increased hunger. Food banks and local charities, which often supplement these programs, are bracing for a surge in demand. Meanwhile, grocery prices continue to rise, making it even harder for families to afford basic necessities.
North Carolina’s Job Market and Federal Workforce
Federal agencies and contractors operating in North Carolina feel the effects of the funding pause. Job losses in research, infrastructure, and public service sectors are becoming a growing concern. Additionally, reduced consumer spending due to economic uncertainty could slow the state’s recovery. Many businesses that rely on federal contracts now face uncertainty, raising fears about long-term job stability and economic growth.
The Path Forward for Us
The funding freeze has left us in a horrible position. Legal challenges that argue that the freeze is unconstitutional and a gross abuse of presidential power are already underway. The U.S. Constitution makes it clear: Congress controls federal spending, not the president. Trump’s decision to unilaterally halt funding violates this principle and puts millions of Americans at risk.
Senator Thom Tillis’s recent comments dismissing fears about housing assistance (“I can't imagine that the president would knowingly cut off housing assistance for people displaced from their homes) echo his earlier defense of Trump’s pardons for violent offenders (“I find it hard to believe that the President of the United States… would look at facts that were used to convict the violent people on January the 6th and say it was just an intemperate moment”). His refusal to push back against this overreach is troubling.
Senator Ted Budd and every other North Carolina Representative have remained silent, failing to stand up for the state’s families and communities.
There are several possible outcomes to these legal and political challenges. Courts may overturn or modify the freeze, ensuring critical programs can resume. Congress also has the power to intervene, but such action would require bipartisan support—a tall order in the current political climate. In the meantime, state and local governments may need to find temporary solutions to fill the gaps, though these measures would likely fall short of meeting the full scope of the need. The 2026 elections could also be pivotal in shaping future funding policies, as voters hold leaders accountable for their actions—or inactions—during this crisis. But that is a long way off…
We have a role to play as well. First, contact Tillis, Budd, and your Representative to demand action and advocate for restoring essential funding. Supporting local relief organizations and food banks can also alleviate some immediate impacts on vulnerable families. Staying informed about changes to federal funding and ongoing legal developments is crucial. Finally, grassroots efforts and community advocacy can push for stronger protections against such overreaches in the future.
Trump’s funding freeze has created chaos, as he so loves to do. But silence and inaction from the state’s representatives cannot go unnoticed. It is essential to hold them accountable and demand leadership that prioritizes the well-being of all North Carolinians.