OpenSky Policy Institute has always been driven by the principle that accurate, precise information helps bring clarity, promotes good public policy, and empowers the public to engage and advocate for decisions made with their investments as taxpayers that reflect their values. We promise, as we always have, to share with you the most accurate information available to us. That has been a challenge over the past 24 hours, but we remain steadfast in our commitment to prioritize accuracy over expediency to avoid causing additional confusion or anxiety. 

On Monday night, President Donald Trump signed an Executive Order directing the Office of Management and Budget (OMB) to pause all federal grant programs by the end of business Tuesday. Yesterday morning, many of our nonprofit partners were unable to access funding portals used to draw down previously granted federal funds. We were also informed of widespread outages in Medicaid  programs in Nebraska and across the country. 

The OMB has directed more than 2,600 programs to submit additional information to ensure alignment to a loosely-defined set of criteria that reflect administration priorities, causing widespread confusion and chaos. These programs range from housing for homeless veterans to school meal programs to grants for precision agriculture investments, to name a few. Subsequent attempts by OMB to provide clarity only added more confusion. A federal judge has now granted a temporary injunction halting the program on the basis of constitutional concerns about executive power to intervene in funds already appropriated by Congress. 

There is still a lot we don’t know about next steps and the implications of this order and others that may be forthcoming. What we do know is this: Nebraska’s budget is dependent on federal funding. We receive 34% of our total revenue from the federal government, and in light of our current $432 million budget shortfall, the Legislature will need to maximize federal funds to meet their obligation to pass a balanced budget. We cannot afford uncertainty as legislators construct the budget, and we cannot afford to absorb significant cuts or the elimination of programs that offer a lifeline to Nebraskans and sustain our state. Just a few examples: 

• Children’s Health Insurance Program (CHIP), which offers health care coverage to children whose families don’t qualify for Medicaid, but cannot afford private health insurance. This program received $97 million in federal funding last year. 
• Low Income Home Energy Assistance Program (LIHEAP), a utility assistance program that ensures Nebraskans don’t go without heat in the cold winter months or air conditioning in the record-breaking heat of recent summers. This program received $36 million in federal funding last year. 
• Surface Transportation Block Grants used to cover maintenance of interstate highways, bridges and dams, as well as infrastructure related to pedestrian safety. These programs reflect the high need for Nebraska’s roadways to remain safe for interstate transportation of goods and services needed across the country, and received $107 million in federal funds last year. 
• Foster Care programs that receive federal funding, ensuring children in the foster care system have access to supportive families and the services they need to thrive. These programs received about $26 million in federal funding last year. 

We stand shoulder to shoulder with Nebraska’s non-profit community to provide analysis and support to our neighbors and communities. We will keep bringing you important, accurate and timely information as it becomes available.