Greene County officials warn temporary federal/state freeze could withhold about $3.9 million for local social services

Greene County human services leaders told the County Services committee on Wednesday that a recent multi‑state action has led to a temporary freeze of federal/state funding that could withhold an estimated $3.9 million in reimbursements to the county.

Sarah, a county human services official, said three letters to the governor’s office and subsequent litigation involving multiple states produced an immediate pause. “We received a temporary restraining order by 06:00 on Friday of the night,” she said, describing the court action that followed the letters. She summarized Greene County’s share of affected programs as approximately $432,000 from the Social Service Block Grant, $515,000 for child care, $650,000 for TANF and additional smaller administrative amounts, with a county exposure of “potentially…almost $3,900,000.”

The official said the lawsuit was filed by several states and that a fuller court decision could come in about two weeks. Meanwhile, she said county staff have continued routine operations: filing December reimbursement claims and preparing for delayed state payments that could take until March to arrive locally. “We cannot close the programs,” she told commissioners, noting services covered by federal and state law including hotlines for child protective services, foster care, adult services, domestic violence response and emergency housing.

Commissioners pressed for documentation and oversight. One commissioner asked what safeguards exist to prevent misdirected funds, referencing reports of alleged fraud in other states; Sarah replied that county books and audits are available for review and that Greene County has passed audits. She also noted the county is scheduled for a federal audit of SSI‑related work next week.

Officials said the pause complicates cash flow but not the county’s legal duty to continue mandated services. Staff and commissioners discussed contingency steps — including short‑term use of county facilities for shelter and close coordination with state officials — and agreed to seek copies of the materials and budget drafts circulating at the state level.

Next steps: county staff will provide the committee copies of the PowerPoint and budget detail; commissioners asked for formal letters and continuing updates as the litigation develops.