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Santa Clara County officials warn OMB funding freeze could disrupt services, legal challenges under way
Summary
County Executive and department leaders told supervisors a broad Office of Management and Budget directive to freeze many federal payments is already blocking access to federal payment portals, raising short‑term cash‑flow risk for programs that rely on federal funds and prompting immediate legal action and local contingency planning.
County leaders told the Board of Supervisors on Jan. 28 that a sweeping memorandum from the White House Office of Management and Budget (OMB) instructing federal agencies to pause many grants and contracts has already begun to affect county operations. County Executive James (last name not specified in transcript) said some county departments and contractors were already locked out of federal payment portals, and some providers had received notices to stop work under federal contracts.
The directive, which OMB issued late the night before the meeting, orders a temporary freeze on numerous federal…
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