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IPHA Comments on Federal Office of Management and Budget Memo Freezing Federal Funding

On January 27, 2025, the federal Office of Management and Budget issued a directive to pause federal grant funding and other financial assistance by 5:00 PM on January 28, 2025. The language in the memo issued by the federal Office of Management and Budget is unclear and is causing a great deal of concern and fear among funded and pass-through grantees.  While it explicitly names Medicare and Social Security as being exempt from the funding freeze, the memo does not specify whether the freeze includes money sent first to states or organizations and then provided to households, so it is unclear whether this will affect SNAP and WIC grant funds at this time.  It also does not explicitly exempt Medicaid, Temporary Assistance for Needy Families, HeadStart, or dozens of other essential programs. Also unclear is how long this “pause” will  be in effect.

Illinois has 97 certified local health departments  that are funded through pass-through grants from state agencies and also direct federal grant funds.  These health departments deliver critical public health programs and services, including disaster assistance, housing support, rural healthcare delivery, and addiction treatment. Additionally, a myriad of community-based organizations, Federally Qualified Health Centers, community health centers, universities, schools, and nonprofits, like IPHA,  rely on these critical federal funds to conduct their work and serve our communities.  This funding freeze could cause a widespread disruption in health care research, health education programs, emergency response, and programs  that protect the health of our most vulnerable residents (i.e., immunization programs).

Due to the pause in federal communications, there has been little guidance issued by federal agencies about the scope of this directive. Potentially affected organizations are poised to shut down programs and to possibly lay off staff, however, more information and guidance is desperately needed. Cutting off funding, even temporarily, from communities throughout our state and the country is alarming and will have far-reaching, potentially irreparable, health impacts. 

The Illinois Public Health Association and its leadership urges Congress, the federal Office of Management and Budget, and all federal agencies to act quickly to end these pauses in federal activity, given the threats they pose to public health and safety, and to ensure the economic stability of our nation.