Western Pa. leaders react to federal funding freeze

Residents of Allegheny and Westmoreland counties could be hurt by a move to halt the federal funding stream to state and local governments, especially those who rely on social service programs and public housing, some of the area’s elected officials said.

Others defended President Donald Trump’s directive Tuesday to pause all federal grants and loans so they can be reviewed.

The move was temporarily blocked Tuesday, minutes before it was scheduled to take effect, by U.S. District Judge Loren L. AliKhan. The administrative stay lasts until Monday, when a court hearing is scheduled to consider the issue.

The move could have a disastrous effect on local budgets, future economic development initiatives and other government services, Democratic officials said.

“It’s horrible public policy and utterly and completely thoughtless. It puts county residents at risk,” said Westmoreland County Commissioner Ted Kopas, a Democrat. “Government spending needs analyzed, but it makes no sense to just stop it. Do the analysis first, just don’t put people’s lives at risk to make a headline.”

U.S. Rep. Guy Reschenthaler, R-Peters, defended the spending freeze.

“The American people overwhelmingly elected President Donald J. Trump to put an end to the cycle of wasteful, woke and bloated federal spending that plunges our nation into further record debt. This common-sense, temporary pause is a necessary and important step to get the United States back on the path to greatness,” Reschenthaler said in a statement.

U.S. Sen. John Fetterman, D-Braddock, called on the Trump administration to reverse course.

Fetterman said his office received reports from more than a dozen organizations that had access cut off to federal funds and learned the state’s Medicaid portal was offline.

“These services, including Medi­caid, are critical to our most vulnerable, and I am calling on the president to immediately restore access,” Fetterman said.

U.S. Sen. Dave McCormick, R-Pittsburgh, did not respond to a request for comment.

“Trump’s executive order claims to be ‘ending wokeness,’ but in the process is robbing people of their ability to afford groceries, education, health care and housing,” U.S. Rep. Summer Lee, D-Swissvale, said in a statement. “Everyone from students to seniors, small business owners to construction workers, that rely on federal funding are now facing uncertainty about if they will have a job or be able to go to school or even to have their next meal.”

Impact on Southwestern Pennsylvania

About 7% of Westmoreland County’s $416.8 million in revenue comes directly through federal grants.

County Finance Director Meghan McCandless said the county receives $28 million in direct federal funding that is used to pay for behavioral health services, programs for elderly residents, foster care and domestic relations department operations and housing needs.

Of that, the county receives about $12.5 million for its housing voucher program (private rental assistance) that comes from the U.S. Department of Housing and Urban Development. That money will not be impacted by freeze, leaving about $15.5 million that’s to be frozen.

Kopas was critical of what initially appears to be a substantial withholding of federal dollars.

“I don’t know how this is all going to settle out, but at the end of the day it puts our taxpayers in this county in a very perilous situation,” Kopas said.

Commissioner Doug Chew, a Republican, cautioned people to remain calm. He said he expected the change in administrations would result in different funding priorities, but he suspects most of the federal dollars for key programs will continue.

“We do not know at this time if there will be any impact, positive or negative, but we will have to follow any grant changes,” Chew said. “We shouldn’t be running around like a chicken with a head cut off for the next two to three weeks while the administration sorts this out.”

Officials obtained few answers as to just what the shutoff of federal spending will mean for local programs.

The Westmoreland County Transit Authority operates a $3.7 million subsidized medical assistance transportation program, half of which is paid for with federal funds.

“We have enough in reserves that we can keep it running for the rest of fiscal year that ends in June,” said Executive Director Alan Blahovec.

More than half of the Westmoreland County Housing Authority’s $40 million budget is funded through federal dollars, including money that subsidizes rent payments for more than 4,200 families.

“I don’t want to speculate but if those are the types of cuts, it will have an immediate impact on housing authorities across the country,” Westmoreland County Housing Authority Executive Director Michael Washowich said. “It will put people at risk of losing their homes.”

The Municipal Authority of Westmoreland County is awaiting a $14 million federal grant to pay for sewer system upgrades in Jeannette and another $750,000 to complete a sewer plant upgrade in Avonmore.

The authority also received approval for $10 million through federal loans and grants to replace as many as 1,000 lead service lines in the Apollo and Vandergrift areas.

That money has yet to hit the authority’s bank accounts, MAWC manager Michael Kukura said.

“We’re not concerned about it,” Kukura said of the federal spending pause.

The funding halt could affect at least $500 million budgeted for programs in Allegheny County, according to initial estimates cited by spokeswoman Abigail Gardner.

“As we currently understand it, this will freeze or cut public safety dollars for victims of violent crimes, sexual assault and domestic violence, and a bulletproof vest grant,” Gardner said. “It cuts public health programs for maternal and infant health, clean air, childhood lead programs and more.”

Other affected county programs, she said, include the Medical Examiner’s Office crime lab and hazmat preparation for emergency services.

She said county human services programs would see “catastrophic cuts. We are seeing some reimbursement portals are already closed.”

“These orders as directed so far are designed to maximize cruelty, chaos and suffering,” Gardner said. “We hope they are not the final decision from the Trump Administration.”

Pittsburgh Water CEO Will Pickering said the authority is closely following developments that may impact access to federal funding for critical water and sewer infrastructure projects that include replacing lead service lines.

“We’re hopeful these resources remain available to Pittsburgh Water and its ratepayers,” he said in a statement.

Bob Kerlik, director of public affairs for the Allegheny County Airport Authority, said officials are working to determine how the move will affect the airport, which is in the midst of a more than $1 billion terminal project at Pittsburgh International Airport.

Of the $1.57 billion needed for the project, about $28.8 million in federal funding came from the bipartisan infrastructure law, and he said more than half of that has been received.

“Federal funding has been beneficial for many infrastructure projects on our campus, both through our yearly capital budget and to the new terminal program,” Kerlik said in a statement. “As far as future work is concerned and existing funding commitments, we are in regular communication with our congressional delegation, executive branch departments and agency partners and will work closely to understand how it relates to our projects.”