Federal funding freeze could put local priorities in jeopardy, say business leaders
SALISBURY, Md. – Business leaders in Salisbury warn President Donald Trump’s order freezing federal grants and loans could impact local projects.
Which Programs are at Risk
The president’s order pauses funding for most Biden-era programming via the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, and the American Rescue Plan Act. The Greenhouse Gas Reduction Fund, State Small Business Credit Initiative, and other sustainability- and equity-driven programming also hang in the balance.
The pause also halts open and soon-to-be-open Notices of Funding Opportunities. All reviews, merit or otherwise, on existing closed Notices of Funding Opportunities are also paused. The New Markets Tax Credit program and EPA Brownfield funding awards may be impacted as they are reviewed by the U.S. Treasury and Environmental Protection Agency.
SBY Airport Grant in Jeopardy?
In particular, Salisbury Area Chamber of Commerce president and CEO Bill Chambers said he worries about what the directive will mean for new air service at the Salisbury Airport. He added an announcement on which carrier will provide that service is expected any day now.
Just a day before President Trump’s order, the airport was awarded nearly $127,000 in federal funding to improve facility equipment.
“All of that is predicated on this federal grant. If this is a grant in jeopardy, then the new air service at SBY Airport will also be in jeopardy. That’s very concerning. This community, regionally, has worked hard to attract interest in a regional carrier. This opportunity cannot be lost, and I would hope that our congressmen are making phone calls to (Trump Administration) officials in Washington to urge them to keep their hands off this grant,” Chambers said.
Uncertainty Ahead
Federal awards that have already been distributed may too be at risk, Chambers said.
“The Trump Administration is talking about pulling things retroactively back from decisions that the Biden Administration has already made. So, I think unfortunately or fortunately, depending on your viewpoint, everything is on the table,” Chambers said.
Chambers said he hopes awards for economic development projects are safe, as well.
“I could understand the Trump Administration looking at special programs and other things that may need more explanation. But anything that creates jobs and tax dollars should be hands-off,” Chambers said.
Federal Funding Crucial for Eastern Shore
Federal funding is crucial for a place like the Eastern Shore, given its rural nature and proximity to national resources, Chambers added. About 11 percent of Maryland’s payroll is directly related to the federal government, he said.
“We’re in a blue state, and we have an administration that is not a big fan of blue states. We also have this tremendous federal presence that Maryland is very dependent on … It’s concerning and troubling to think that Maryland could be short-shrifted when it comes to federal grants, programs, and the discussions about moving federal agencies out of the Washington, D.C. area,” said Chambers.
Waiting For Answers
Chambers said the local business community is preparing itself for any more big announcements from the Trump Administration.
“I’m getting phone calls and emails about this freezing on federal grants issue. I hope somewhere down the line we get word that this grant to the airport and other grants already accepted and agreed upon by the federal government to the State of Maryland in the pipeline won’t be touched,” Chambers said.
The executive order gives federal agencies until Feb. 10, 2025, to produce detailed information on any programs, projects, or activities subject to the pause. In the meantime, all new awards and disbursement of federal funds are on hold until the Office of Management and Budget has reviewed and issued guidance concerning the information submitted.
The initiative went into effect at 5 p.m. Eastern Time on Jan. 28, 2025.
