The San Diego Regional Chamber of Commerce said Tuesday the Trump administration’s abrupt freeze on federal funding — which a judge temporarily paused — is “deeply alarming” and threatens the local economy.
“The funding freeze announced by the Trump administration is deeply alarming for our region,” said Jessica Anderson, interim president and CEO of the chamber. “Freezing critical programs such as small business loans, healthcare, education, childcare, and infrastructure will severely affect our workforce and economy.”
“These programs are intrinsically tied to our regional economy, and halting their support threatens both immediate stability and long-term growth,” Anderson said.
A vaguely worded memo issued late Monday by the Office of Management and Budget announced a temporary halt to all loans and grants from the federal government.
Lawmakers, public officials and average Americans were left struggling to figure out what programs would be affected by the pause. Even temporary interruptions in funding could cause layoffs or delays in public services.
Administration officials said the decision to halt loans and grants — a financial lifeline for local governments, schools and nonprofit organizations around the country — was necessary to ensure that spending complies with Trump’s recent bevy of executive orders.
Officials said programs that provide direct assistance to individual Americans would not be affected, including Medicare, Medicaid, Social Security, student loans and food stamps. However, access to Medicaid funding for healthcare providers was reportedly cut off.
Less than 24 hours after the memo was issued, U.S. District Judge Loren AliKhan in Washington ordered the Trump administration not to block “open awards,” or funds that were already slated to be disbursed, until at least Feb. 3.
The judge said her temporary ruling was intended to “maintain the status quo.” It does not block the Trump administration from freezing funding to new programs, or require it to restart funding that has already ended.
“We strongly urge the administration to restore funding as soon as possible and look forward to working closely with our federal representatives to advocate for our region’s programs,” the chamber’s Anderson said.
The San Diego Chamber is the largest local business organization on the West Coast.
Updated at 3:30 p.m., Tuesday, Jan. 28, 2025
The Associated Press and Reuters contributed to this article.
