Vermont Orgs Announce Layoffs, Cutbacks After Funding Freeze

While the pause was reportedly rescinded, those local organizations said they still can’t access federal funding portals they use to pay for their operations.

Joe Wiah, director of the Vermont branch of the Ethiopian Community Development Council — a refugee resettlement agency — said he was forced to lay off nine employees over the past week.

“These are staff that have been with us from the beginning, who have been supporting our clients,” Wiah said.

He was one of about 50 people, some of whom were on the verge of tears, who participated in a virtual roundtable hosted by U.S. Sen. Peter Welch (D-Vt.) on Friday morning to discuss the local ramifications of a chaotic week.

The White House’s Office of Management and Budget initially planned to implement the freeze on Tuesday evening, but a federal judge halted the action after it was challenged in court as unconstitutional. The office then announced on Wednesday that it had rescinded the memo — before a White House spokesperson said executive orders going after federal grants would remain in effect.

Amid the confusion, local organizations that depend on federal dollars said they are still locked out of their funding portals. The money is often appropriated through reimbursements, putting organizations that operate on shoestring budgets in a difficult position.

Many, such as the Ethiopian Community Development Council, have been forced to make tough choices to stay afloat.

The Vermont Family Network — which supports children with disabilities — hasn’t been able to access its federal funding, which it uses to reimburse families for medical needs and run a helpline for parents. The network suspended all of its planned activities and has talked about furloughing its employees.

“We cannot sustain this long-term,” said Karen Price, the organization’s director of family support. “Every day since Tuesday has been filled with anxiety and uncertainty.”

Jenna O’Farrell, executive director of Northeast Kingdom Community Action, said the organization also does not have access to federal payments, including funding for a Head Start program. Head Start agencies were not included in the list of federal grants and loans whose funds are frozen.

O’Farrell said the organization is currently unable to make payroll for its 160 employees and cannot pay the lease on properties its rents. “We are in a really tough situation,” she said.

Attorneys general from across the country — including Vermont’s Charity Clark — are taking legal action in an attempt to reverse the order. They argued that it was illegal to put conditions on funding that had already been awarded.

Later Friday, a federal judge issued a temporary restraining order that prohibits the Trump administration from freezing funding until a full ruling is made later.

Welch, too, has been vocal about his intent to challenge the decision in the halls of Congress. On Friday, he also offered words of encouragement to the distraught community organizations.

“I see how much you all contribute to the individual well-being of Vermonters. It’s very disturbing to me what’s going on,” Welch said. “Your delegation here in D.C. is completely united to try to mitigate the harm that is so cruelly being inflicted on you and so many Vermonters.”