Lawmakers, Governor, University Of Nebraska Seek More Info On Federal Spending Pause, Review
LINCOLN — State lawmakers, Gov. Jim Pillen and the president of the University of Nebraska were among those Tuesday seeking to understand the state-level impacts of a federal pause and review of certain financial assistance programs by the Trump administration.
Omaha State Sens. Machaela Cavanaugh, Margo Juarez, Megan Hunt, John Cavanaugh, Terrell McKinney and Ashlei Spivey, as well as State Sen. Victor Rountree of Bellevue, sent an afternoon request for Pillen and his staff to explain how the federal action would impact the Cornhusker State.
All but Hunt, a nonpartisan progressive, are Democrats in the officially nonpartisan Legislature.
“Your understanding and insights are crucial in deciphering these federal actions’ implications on our state agencies, programs and residents,” the senators wrote to Pillen, a Republican.
President Donald Trump’s acting director of the Office of Management and Budget issued a memorandum Monday requiring all federal agencies to identify and review certain programs, including loans or grants, effective at 5 p.m. Tuesday, Eastern Time.
The move temporarily pauses what could be trillions in funding.
“Financial assistance should be dedicated to advancing Administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending ‘wokeness’ and the weaponization of government, promoting efficiency in government, and Making America Healthy Again,” the OMB memo states.
A federal judge, just minutes before the Trump administration order was set to take effect, paused the federal spending freeze and review for at least one week.
Promise To Rein In Federal Spending
The state lawmakers’ request to Pillen sought a “comprehensive evaluation” from relevant Nebraska agencies within the next 30 days on the following:
- Expected fiscal impacts of paused federal funding on Nebraska’s budget.
- Anticipated administrative or policy changes necessary for compliance.
- Potential disruptions to services provided to Nebraskans.
- Any legal considerations for state agencies and regulatory bodies.
“A follow-up report with detailed analysis and recommendations would be invaluable in guiding our legislative response and ensuring Nebraska is prepared to navigate these federal mandates effectively,” the senators continued. “We look forward to your insights on how the State of Nebraska will address these federal directives.”
Though not responding to the senators directly, Laura Strimple, a spokesperson for Pillen, said the administration would be working with state agencies and federal partners to evaluate the impacts of the federal memo. She said to expect updates in the days and weeks ahead.
“President Trump promised the American people he would rein in federal spending that was out of step with their priorities,” Strimple said. “He is clearly making good on that promise.”
The White House has said individual assistance programs, including Social Security, Supplemental Nutrition Assistance Program benefits, Medicare, Medicaid and other welfare programs, wouldn’t be affected.
A separate memo from OMB lists off the programs that would be paused temporarily while it reviewed which federal spending it deems appropriate.
The list includes the Department of Agriculture’s tribal food sovereignty program, Head Start, the Veterans Affairs Department’s suicide prevention and legal services grants, the Low-Income Home Energy Assistance, or LIHEAP, program, and numerous sexual assault prevention programs within the Department of Justice.
Nebraska Federal Delegation
Sen. John Cavanaugh on X, formerly Twitter, said he was seeing “chaos and confusion” because of Trump’s “unlawful orders.” He urged Nebraska’s federal delegation to step up “as the executive tramples on Congress’ authority.”
“The reassurances that this won’t impact individual assistance don’t seem to line up with the facts on the ground,” Cavanaugh wrote.
Hunt said state lawmakers were researching what steps they could take in the face of what she described as “massive federal overreach.”
U.S. Rep. Don Bacon, R-Neb., told CNN on Tuesday that he hopes the temporary pause in federal assistance is “short-lived,” citing benefits some federal programs provide.
“There’s real people that depend on these grants,” he said. “There’s no reason for the disruption.”
Bacon has said on X that the original executive order was too vague but that a clarification memo from OMB helped.
NU Monitoring Changes
University of Nebraska President Jeffrey Gold similarly alerted NU faculty, staff and students to the federal memo on Tuesday.
Gold said he and his team are “actively working” to understand the scope and impact on federally sponsored research at the university and its other federally funded programs.
About 22% of NU’s $3.47 billion budget ($753 million) is federal funds.
“Today, our primary focus is on gaining a clearer understanding of how this pause will impact research and programmatic grants and contracts — including those already awarded,” Gold said. “We are working to identify next steps for faculty, staff, administration and students.”
A ‘United’ NU System
Gold said federal partners have indicated that Pell Grants and direct student loans won’t be affected by the pause and that federal agencies have until the end of next week, Feb. 7, to submit detailed information regarding programs, projects or activities subject to the pause.
The White House’s Office of Management and Budget has instructed agencies to pause all open Notices of Funding Opportunities activities, including merit review panels and the issuance of new or continued award funds.
The NU president and his four chancellors across campuses in Lincoln, Omaha and Kearney said Friday they would continue to monitor possible impacts to NU but not sway from NU’s mission, including in the face of a Pillen request to cut NU’s state-aided budget.
The Trump administration has also paused external communications at the U.S. Department of Health and Human Services, which includes the National Institutes of Health.
In the most recently completed fiscal year, Nebraska institutions received $137.3 million in federal NIH funds — $113.7 million went to NU, three-fourths of that to the University of Nebraska Medical Center.
Gold said there would be further updates on campus-related areas of interest and that NU leaders are creating a shared website to centralize resources and information.
“As always, I am deeply grateful for your dedication to our students, our state, and the advancement of science, the humanities and the arts — both within our institution and beyond,” Gold said Tuesday. “We will always be more successful when we face changes such as these together as a united University of Nebraska System.”
This story was published by Nebraska Examiner, an editorially independent newsroom providing a hard-hitting, daily flow of news. Read the original article: https://nebraskaexaminer.com/2025/01/28/lawmakers-governor-university-of...
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