Trump Administration Freezes Federal Grants, Potentially Costing Wyoming Over $100 Million

Wyoming stands to lose over $100 million in federal grants, a consequence of the Trump administration’s decision to freeze a number of Biden-era programs. These programs, aimed at supporting local communities and addressing issues such as food insecurity and energy savings, are now in limbo. This freeze threatens critical funding for essential services, and local officials are deeply concerned about the potential long-term impacts.

One of the most affected organizations is the Food Bank of Wyoming, which recently learned it would not receive $535,000 that was promised in a 2023 grant. This grant was part of the Local Food Purchase Assistance Cooperative Agreement, which connects Wyoming’s agricultural producers with local consumers while addressing the needs of the state’s most vulnerable populations. Unfortunately, due to the freeze, the program has been terminated, impacting those who rely on food banks for sustenance.

Jill Stillwagon, the Executive Director of the Food Bank of Wyoming, expressed the gravity of the situation, explaining to Oil City News that the food insecurity crisis in Wyoming is at its highest level in a decade. As the state struggles with rising costs and a growing need for food assistance, this loss of federal funding couldn’t come at a worse time.

Wyoming’s Home Energy Savings Program on Hold

Another critical program affected by the freeze is Wyoming’s Home Energy Savings Program, which was recently established by the Wyoming Energy Authority. After months of bureaucratic delays and public consultations, the program was poised to offer much-needed financial relief to low-income households facing skyrocketing energy bills. However, like many other programs, the status of this initiative is uncertain. Wyoming officials have received no clear answers about whether it will be allowed to continue, leaving the state’s $69 million in federal funding frozen.

This uncertainty is especially concerning as many residents in Wyoming are grappling with rising electric bills. The program aimed to help these residents reduce their energy costs and invest in more energy-efficient homes, but now that funding is on hold indefinitely.

The Uncertainty of Federal Funding

The freeze is part of a larger pattern of uncertainty surrounding federal programs under the Trump administration. The freeze and elimination of funding are compounded by ongoing court battles and personnel changes under the Department of Government Efficiency, led by Elon Musk. As a result, many federal programs remain in limbo, and Wyoming’s future funding is now at risk.

State officials are struggling to keep track of the status of various grants, as many of them are managed by different agencies and organizations. Dru Palmer, the manager of Wyoming’s State Grants Integration office, stated that it is difficult to get a clear picture of how much money is at stake. When WyoFile asked for an estimate of the potential losses, the inquiry was forwarded to Governor Mark Gordon’s office, with Michael Pearlman, the governor’s communications director, noting that the situation is still evolving.

“The programs are paused or frozen, and it’s unclear whether they will move forward or be terminated,” Pearlman told WyoFile. “We’re getting information piecemeal, with updates coming from individual agencies.”

Over $100 Million in Federal Funds at Risk

The Wyoming Outdoor Council has identified at least $100 million in federal funding that the state, along with local tribes such as the Northern Arapaho and Eastern Shoshone, have applied for under programs like the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. This includes grants for solar energy projects and other sustainability initiatives that are now on hold.

One such program, Solar for All, which had promised up to $30 million in grant money for renewable energy projects, is now frozen. The program also included funding for workforce training programs, particularly aimed at helping low-income and tribal communities install solar infrastructure.

In addition, Wyoming agricultural producers, already struggling with high energy costs, had hoped to receive rebates through the Rural Energy for America Program for their investments in solar energy systems. These rebates, too, are now uncertain as the program remains frozen.

Potential for Even Bigger Losses

According to Jonathan Williams, the Energy and Climate Associate at the Wyoming Outdoor Council, this freeze is likely just the beginning. He believes the true extent of the federal funding losses could be much greater, potentially reaching up to $2 billion. However, due to the lack of clarity from federal agencies, it is difficult to determine the exact amount of money that Wyoming stands to lose.

The Wyoming Outdoor Council recently hosted a public webinar to highlight the ongoing risks posed by the freeze and what could be gained if these federal funds were allowed to flow again. Williams emphasized that many of these programs offer one-time investments that could have significant long-term benefits for residents and communities. These include improvements in human health, emergency preparedness for natural disasters, and overall quality of life.

“These programs are crucial for providing residents with affordable energy and improving public health,” Williams said. “They are not abstract government initiatives; they directly benefit the people of Wyoming.”

City Officials Speak Out

In Cheyenne, city officials are equally concerned about the status of federal grants. Renee Smith, the Economic Resource Administrator for Cheyenne, expressed frustration at the uncertainty, explaining that federal agencies are often slow to provide updates on grants. This lack of clarity, she fears, will lead to a slowdown in the city’s ability to apply for and secure future funding.

“We are in limbo right now,” Smith told WyoFile. “Without new grants, we won’t be able to do the infrastructure projects we have planned for next year.”

While some existing grants are still in progress, Smith warned that the lack of new federal funding applications could have significant consequences for Wyoming’s future. With critical programs like those from the U.S. Environmental Protection Agency (EPA) and the U.S. Forest Service in jeopardy, the future of Wyoming’s infrastructure and energy projects is unclear.

Advocacy and Action

In response to these challenges, a group of Wyoming community leaders and advocates will travel to Washington, D.C. this week to lobby for the restoration of federal funding that has already been promised to the state. Governor Mark Gordon and Wyoming’s congressional delegation are also pushing for exceptions to the sweeping cuts, but whether their efforts will succeed remains to be seen.

As the situation develops, officials and advocates in Wyoming are doing everything they can to ensure that the state’s essential programs don’t fall victim to the uncertainty caused by federal cuts and freezes. The fight is ongoing, and the stakes are high for Wyoming communities and residents who rely on these federal funds.

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