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.
But then U.S. District Judge Loren L. AliKhan blocked the action Tuesday afternoon, minutes before it was set to go into effect. Then Wednesday afternoon, the same Office of Management and Budget that issued the guidance, rescinded it.
That capped, for now, two days of frenzied debate over how the order would have affected everything from Medicaid and Head Start to the start of Ohio’s two-year budget process, which normally would begin next week.
Local agency impacts
The loss of federal funding could impact local agencies that provide social services and other types of assistance to the community. Nearly a quarter of the budget for Public Health - Dayton & Montgomery County comes from the federal government.
“Public Health – Dayton & Montgomery County is closely monitoring any changes stemming from recent executive orders, and we are committed to understanding the full implications of how those orders may impact our community," said Health Commissioner Jennifer Wentzel.
Public Health has not received any direct communication that any funding would be cut, but the orders have caused some uncertainty regarding priorities of the federal government and their impact on Public Health.
“While personnel changes at the federal level may lead to shifts in their funding and policy, Public Health’s primary vision remains the same; to keep Montgomery County a healthy, safe, and thriving community,” Wentzel said.
Public Health will continue to prioritize programs that protect and promote public health, she said.
Public Health has a 2025 operating budget of $42.8 million with an estimate of $9.7 million in grant funding, of which most are federal dollars that account for approximately 23% of Public Health’s budget.
“At this point, Public Health has had no direct communication from the federal government regarding any specific temporary, or permanent, reduction of funds,” Wentzel said. “However, federal dollars support a vast number of programs at public health that directly impact the health and well-being of all Montgomery County residents.”
Goodwill/Easterseals has a major presence serving people with disabilities in the Dayton area. Easterseals national CEO Kendra Davenport said Tuesday that families who depend on organizations like Easterseals for food, housing, health care, and job training “should never have to go through another day like today.”
“For them, and those who serve them, it was a day of heartache, chaos, panic, and real fear in thousands of communities all across America,” Davenport said. “And there may be more pain on the horizon with talk of cuts to Medicaid and other programs that help Americans keep their heads above water.”
The Dayton Daily News has also reached out to Montgomery County Alcohol, Drug Addiction & Mental Health Services to see what kind of impact this could have on agencies that receive funding from the U.S. Department of Health and Human Services.
State impacts
This disruption could not have come at a worse time for Ohioans, said Hannah Halbert, executive director of Policy Matters Ohio, which is a state policy research institute.
Ohio Gov. Mike DeWine is expected to release his budget proposal next week, she said, and federal funds make up more than one-third of Ohio’s general revenue fund, according to Policy Matters Ohio.
“Many state agency budgets that pay for programs that everyday Ohioans rely on are based on federal grants to the states,” Halbert said.
Funding for childcare, school meals, unemployment insurance, low-income energy assistance, substance use disorder treatment and WIC, or the supplemental nutrition program for women, infants and children, could all potentially be put on hold.
The budget for Ohio’s Department of Children and Youth includes nearly $3 billion in federal funding, just over 67% of their budget, according to Policy Matters Ohio.
“Federal funding touches every part of state government, from programs that support cancer patients to unemployment compensation,” Halbert said.
National, education impacts
“Creating chaos is not leadership,” said National Education Association President Becky Pringle. “The unprecedented, illegal and reckless decision by the Trump administration to freeze federal funding will hurt students, communities and public schools - especially students in lower-income communities who benefit most from federal funding.”
Families could find themselves without crucial resources if they lose access to Head Start and child nutrition programs like the National School Lunch Program, which is a federally funded program that provides free or reduced-price meals to students in participating schools.
“Students will lose access to learning opportunities if Head Start programs are shuttered. Parents will be cut off from childcare services they depend on so they can go to work and provide for their families. Students will go hungry if school meals are taken away,” Pringle said.
The Dayton Daily News has reached out to the Ohio Department of Medicaid to see what potential impacts this could have on the nearly 3.8 million people in Ohio who receive Medicaid benefits. A spokesperson declined to comment.
For state fiscal year 2024, Ohio Medicaid’s budget was approximately $38.8 billion. About 73% of that budget comes from federal funds, according to the Ohio Legislative Services Commission.
The Associated Press contributed to this story.
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