I go to our Capital each day focused on Oregon and the challenges we face here. Last Monday started out as a fairly routine week in Salem with budget committees beginning to hear from state agencies and policy committees holding hearings on bills.
And then Monday night, the White House moved to pause federal grants and loans as President Donald Trump’s administration begins an across-the-board ideological review of its spending. That move caused a lot of confusion as leaders took action to understand what a freeze might mean for the state and its residents. The pause was scheduled to take effect at 2 p.m. Pacific Time on Tuesday, just one day after agencies were informed of the decision.
Administration officials said the decision was necessary to ensure that all funding complies with Trump’s executive orders, which are intended to undo progressive steps on transgender rights, environmental justice, and diversity, equity and inclusion, or DEI, efforts.
These are real programs that affect real people.
Thrown into uncertainty was the Oregon Health Plan. State figures show 33.5% of Oregonians are on the state’s Medicaid program. About 14% of Oregon’s annual education budget comes from the federal government, amounting to more than $1 billion each year. And 17,500 preschool children are enrolled in Head Start.
Other affected programs include SNAP and child care, roads and highways, health care research, child support enforcement, wildfire prevention and home resilience, and grants providing financial assistance to firefighters.
NOAA and university research are at risk, including many programs at the Hatfield Marine Science Center. Oregon State University is among the biggest recipients of federal research funding in the state. The university was awarded $370 million in federal grants last school year.
Looking at the bigger picture, altogether, federal funds account for around $38 billion of Oregon’s current two-year budget — nearly a third of spending. Suddenly we were looking at how we might need to backfill those losses, how to cut state funding by a third, or where needed replacement revenue might come from. |