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Colorado nonprofits, research community reacts to Trump administration plan to freeze federal funding

Coloradans reacts to Trump administration plan to freeze federal funding
Coloradans reacts to Trump administration plan to freeze federal funding 03:33

A move by the Trump administration to freeze federal funding quickly blocked temporarily by a federal judge is sending waves of concern through the nonprofit and research community in Colorado.

"Nonprofit leaders feel threatened, feel intimidated, feel fear by what's happening with these executive orders. Because their nonprofits are at risk, their work is at risk. And the communities more importantly that they work for are at risk," said Paul Lhevine, President and CEO of the Colorado Nonprofit Association.

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The Trump administration's plan to freeze federal funding, quickly blocked temporarily by a federal judge, sent waves of concern through the nonprofit and research community in Colorado.  CBS

Lhevine says Colorado has 34,000 nonprofits that a recent study said contribute over $60 billion to the state's economy.

"This is just the beginning of this administration and the direction they're taking. And I think there's a lot of fear in the nonprofit space. I think there's a lot of fear across the state of Colorado," said Lhevine.

The freeze came from the administration set on an ideological review of federal money used to serve causes it opposes. It created both confusion as well as angst among nonprofits, agencies, and research organizations.

The list of how federal funding comes to entities in Colorado is long.

"We've been really scrambling all day trying to figure out how we're going to get people's rents paid and how we're going to deliver the healthcare services and supplies that people experiencing homelessness and lower-income households need," said Cathy Alderman, Chief Communications and Policy Officer Colorado Coalition for the Homeless.

The coalition was hit along with many other organizations and agencies with what the Trump administration later called an "outage."

They were locked out of online systems for drawing down federal health dollars. The coalition runs a clinic and helps provide housing, both with federal grant money.

"We serve a lot of people who are living with disabling conditions and can't work full-time. We serve a lot of veterans who are sometimes just trying to get back into the workplace… We also serve people that have mental health conditions and substance use disorders," said Alderman. The thought of losing federal support is a bitter pill.

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President and CEO of the Colorado Nonprofit Association Paul Lhevine  CBS

"I'm not sure how this would be funded privately. The federal government has been providing this assistance to households. Frankly not enough. That's why we have the housing and homelessness crisis that we have today because federal funding has largely stayed stagnant."

Other entities in Colorado grew nervous as well.

The state's Behavioral Health Administration was in the process of reviewing as well as having trouble with computer systems.

"BHA continues to gather a list of programs and funds that may be impacted by any freeze in federal funding. We are working closely with the Governor's Office and our State Agency partners to evaluate any potential impacts to critical community services," said the agency in an email. It was looking at programs to treat mental health programs and others that help with substance abuse treatment and recovery.

Research operations like National Jewish Health were assessing the potential of federal funding issues ahead.

"We currently receive research grants from the Federal Office of Personnel Management, the National Institutes of Health, the National Science Foundation, The Department of Defense, and the Department of Health and Human Services. We rely on these sources for $4 million per month in cash flows. The research supported by these funds is complicated and extensive and cannot be shut down and restarted without significant ramifications on people, scientific integrity, and cost," said National Jewish in an email.

The administration says it expects entities that receive federal dollars to report back to the White House for review by February 10, but with an extensive list of federal projects needing review, it is questionable how such review could get done.

Colorado Congressman Gabe Evans on X said the freeze is about spending and warned people not to jump to conclusions. He added that spending on DEI is "frivolous."

Nonprofits are taking a hard look and are concerned about speaking out says Lhevine.

"It's hard to understand how somebody can say don't be alarmed it'll be OK. When the directives, when the executive orders are so clear in how they're trying to intimidate and instill fear in nonprofit leaders."

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