Here’s how a freeze on federal grants could impact the Central Valley

FRESNO, Calif. (KSEE/KGPE) – A D.C. federal judge paused the Trump Administration’s plan to freeze federal grants Tuesday.

The freeze was set to take effect at 5 p.m. Tuesday and would have impacted agencies all over the country.

“My understanding is the courts have already put an injunction on this, I think that’s wise,” Democratic Congressman Adam Gray said.

The judge paused the freeze until Monday morning when she can hear arguments from both Democrats and Republicans.

Gray says he is interested in hearing the Trump Administration’s perspective, but believes all approved grants should be paid in full. He says it is important for the government to keep its commitments.

“I think some broad, vague statements have been made. I’d like to see specifically what we’re talking about. And at the time that I see those specific cuts, I’m happy to comment on those individual programs,” Gray said.

White House Press Secretary Karoline Leavitt sees the freeze as imperative.

“It means no more funding for illegal D.E.I. programs. It means no more funding for the green new scam that has cost American taxpayers tens of billions of dollars. It means no more funding for transgenderism and wokeness,” Leavitt said.

In a press briefing before the federal judge’s decision, Leavitt clarified the pause would not affect individuals relying on Social Security, Medicare, food stamps or student loans. She says it would instead pull trillions of dollars planned for healthcare research, education programs and environmental justice programs.

“Assistance that is going directly to individuals will not be impacted by this pause,” Leavitt said.

One local program that would be impacted is Fresno Housing.

The agency posted on their Facebook page Tuesday that they are working to come up with short-term funding options if they lose federal dollars.

Although the freeze would impact many local groups, California would still feel less impact than other states. According to a 2024 WalletHub study, California ranks 49th on the list of most federally dependent states.

However, the federal grants California does take advantage of now hang in the balance, depending on the outcome of Monday’s hearing.