Donald Trump's push to freeze federal funds sparks confusion in Texas

BY JOSHUA FECHTER
JAN. 28, 2025

DALLAS — Confusion reigned in Texas as local governments, nonprofits and state agencies scrambled Tuesday to figure out just how deep cuts from President Donald Trump’s new push to pause federal spending could go.

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More than 4 million Texans, mostly children, are enrolled in the Medicaid and CHIP programs. Those programs pay for health care mostly for low-income residents, including children, their mothers and elderly Texans. In the state’s current two-year budget, Medicaid’s budget is $80.9 billion, most of that from the federal government.

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If the freeze resumes, it could have a disproportionate impact on rural communities, where about 3 million Texans reside, said Ashley Harris, director of policy and advocacy for the United Ways of Texas. (Emphasis mine.)

“Rural nonprofits and communities often have fewer funding options,” Harris said. “Relying on federal grants is really critical to filling in the gaps for local services.”

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