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Federal funding pause and new DOT guidance raise risks for local programs, Schumer aide tells Tompkins panel
Summary
Amanda Spellacy of Senator Charles Schumer’s office told the Tompkins County Intergovernmental Relations Committee that an Office of Management and Budget directive briefly paused certain federally authorized payments and that other new federal orders could threaten funding for local programs such as public transit and research grants.
Amanda Spellacy, regional director for Senator Charles Schumer, told the Tompkins County Intergovernmental Relations Committee on Feb. 5 that recent federal actions have created significant uncertainty for local programs that depend on federal grants and payments.
"We will face the government running out of money," Spellacy said, describing the current continuing resolution that funds the federal government only through March 14 and the administrative confusion after an Office of Management and Budget directive briefly paused dissemination of some previously approved federal payments. "That was, it feels like it was years, but I think it was just 36 hours that that was enforced till that was paused." She added that agencies and grantees remain cautious while guidance is clarified.
The committee heard specific concerns about how new federal directives could affect transit funding. Legislator Deborah Dawson asked about a recent Department of Transportation order directing recipients to prioritize projects that, among other aims, discourage vaccine and mask mandates and require local cooperation with federal immigration enforcement. Dawson noted that TCAT, the county’s public transit provider, is a subrecipient through the county and that "that federal assistance is over half of TCAT's budget." Spellacy urged local officials to document impacts and stay in touch with federal staff so the senator’s office can raise issues in Washington.
Why it matters: The OMB pause and new agency-level directives could temporarily stall payments that local governments, health providers and universities rely on to run programs such as SNAP, Medicaid, veteran services and federally funded research. Spellacy said Senator Schumer is tracking the situation and intends to press for legislative and administrative steps to restore certainty. "Senator Schumer and, and, Jeffreys have have introduced or plan to introduce legislation that will implement some safeguards to, protect the, the rating of of treasury's information," Spellacy told the committee.
Local officials on the call described concrete consequences they fear. Committee members raised the risk that pauses or new compliance conditions would impede delivery of services or require new documentation and reporting. Spellacy and other staff recommended gathering localized data on program recipients, ridership and service impacts so the senator’s office can better convey the consequences to federal decision-makers.
No formal action was taken by the committee; members asked staff to continue to monitor federal guidance and to share specific examples of disruption so they can be escalated to the congressional delegation.
Ending: Spellacy said she would continue to brief the senator and to return to the committee with updates when federal agencies publish implementing guidance. The committee encouraged TCAT and other service providers to document potential or real funding interruptions and to work with county staff to compile impact summaries for the senator's office.
