LANSING, Mich. (March 5, 2025) — Today, the Senate Oversight Committee, chaired by Sen. Sam Singh (D-East Lansing), heard testimony from leaders of early childhood education programs, health and nutrition experts, disability advocates, and other nonprofits and institutions that have been impacted by the Trump administration’s January memo ordering a pause to funding for federal grants and loans.
“Organizations that teach our kids to read, care for us when we’re sick, and keep our communities fed should be put on pedestals, not chopping blocks,” said Sen. Singh. “The Trump administration’s attempt to halt federal funding for critical programs and grants around the country didn’t just spark fear, confusion, and chaos among Michigan nonprofits, health care centers, and other organizations, but also held devastating effects for the Michiganders who rely on the essential services they provide. I’m incredibly grateful to the organizations who testified today and shared the real consequences these actions are having on real people here in our state.”
With very little guidance for states and organizations to comply, the White House’s Office of Management and Budget (OMB) issued a memo in January ordering a pause on funding for federal grants and loans. This caused widespread confusion about its scope and effects for nonprofits, state departments, universities, and numerous other institutions. Twenty-two states, including Michigan, have sued to stop the order, and it is currently being blocked by a federal court. This federal funding freeze and the related ongoing uncertainty have raised significant concerns for organizations around the state and for the Michiganders who rely on them.
A recording of the committee hearing can be viewed here, and the following individuals testified today to share their insight and experience:
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Phillip Bergquist, Michigan Primary Care Association
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Deb Brinson, Director, Pontiac Federally Qualified Health Center
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Megan Erskine, Catherine’s Health Center
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Chanda Hillman, CEO/Executive Director, Flowers Early Learning
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MaDonna Princer, Executive Director, Head Start for Kent County
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Dr. Deane Kelleher, Director of the Office of Health & Nutrition Services, Michigan Dept. of Education
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Teri Langley, Disability Network
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Kelly Kuhn, President and CEO, Michigan Nonprofits Association
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Richard Trent, Main Street Alliance
These individuals, some of whom have decades of experience of working with the federal government to secure funding, shared how problematic the initial proposed funding freeze and the ongoing confusion have been. Thousands of parents, patients, people with disabilities, and others rely on these and similar organizations in their communities and around the state. Reduced federal funding would put food, health, housing, transportation, and other vital services and support at risk.
The freeze would also have a negative ripple effect on the state’s economy. It has already caused uncertainty and financial concerns for these organizations’ staff and complicated their ability to hire and retain quality employees. Cutting off federal dollars would diminish opportunities for local farmers to provide fresh and healthy food to people in need, increase emergency room visits and strain on hospitals, and impede people’s ability to get to and from work, the grocery store, or the pharmacy.
Recent estimates indicate that $396 billion is still being withheld nationwide for important priorities such as clean water infrastructure, roads and bridges, medical research, and National Park staffing and maintenance. Combined with the ongoing terminations of an enormous number of federal employees, uncertainty continues to characterize federal funding and services. Additionally, with 40% of Michigan’s state budget being funded with federal dollars, if the freeze were to be reinstated, it would have significant implications for Michigan families and communities.
Michigan Senate Democrats will continue to stand with the state’s families, community organizations, and local businesses to fight back against these dangerous decisions. Senate Oversight and other committees will continue to investigate the local consequences of President Trump’s federal actions.
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