A U.S. district judge issued a temporary restraining order on Jan. 31, stopping the Trump administration’s executive orders freezing federal funds for essential services like health care and housing. However, Judge McConnell ruled that Trump violated this order by illegally continuing freeze actions. The administration was ordered to restore funding, including those from the IRA and IIJA, affecting agencies like the National Institutes of Health. Programs like Medicare, Social Security, and SNAP benefits are unaffected.
According to an Austin Intergovernmental Relations Office memo, if the freeze persists, many Austin projects will suffer, especially transportation and public health sectors reliant on $1.2 billion federal funding over four years. The “Unleashing American Energy Executive Order” impacts funds from the Inflation Reduction Act and Infrastructure Investment and Jobs Act, crucial for local projects. Just before the order, Rep. Lloyd Doggett secured $15 million for Austin’s EV charging expansion.
Significant projects at risk include Safe Streets for All, the Barton Springs Bridge, and I-35 expansion mitigation, with $220 million potentially lost. The Barton Springs Bridge replacement, funded with a $32 million federal grant, and airport expansion, partly funded by federal grants, face jeopardy, according to Carrie Rogers, intergovernmental relations officer.
Austin’s health care could be hit, with Austin Public Health relying on $39 million annually for key family health initiatives and emergency preparedness. UT-Austin research might lose millions due to a new NIH policy capping grant-related reimbursement costs. Texas was not included in a halted lawsuit against this rule, affecting UT’s federally funded research budget, which was 61% of its $1.06 billion research spending in 2023.
Affordable housing projects in Travis County, often funded by the IRA, could also be affected. The city recently celebrated a nearly $7 million HUD grant earmarked for South Congress developments and CapMetro’s Crestview Station.
Despite the uncertainty, Rogers advises Austin departments to maintain normal operations unless instructed otherwise. Departments should continue funding activities and agreements unless directly informed by federal agencies about changes to their grants.
Photo by Baseball Watcher, CC BY-SA 3.0, via Wikimedia Commons.
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