At least $100 million in previously budgeted Harris County funds are being redirected towards certain grant-funded programs that could be impacted by federal funding freezes. Harris County commissioners passed the motion unanimously during a Feb. 27 meeting.
“There’s no doubt that these grants are serving a great purpose for our community," Precinct 2 Commissioner Adrian Garcia said at the meeting. "It’s painful to think that some of this funding may go away and so I appreciate all the work that’s being done to evaluate how we can keep moving forward, but at some point ... we’re going to have to make some tough decisions.”
The impact
A federally-backed program implemented across Harris County that is being impacted by funding availability include the free early childhood education pilot program that launched in June 2023 using federal funding from the 2021 American Rescue Plan Act. County commissioners said at a Feb. 6 meeting how the program could be ending soon once federal funding ends.
The $29 million program was designed to provide free, high-quality child care for families in high-need areas, addressing the challenges faced by both children and child care providers in the county.
By the numbers
Harris County has an estimated $150 million-$170 million in pending reimbursements from the federal government, according to Budget Director Daniel Ramos. The majority of those reimbursement funds, he said, are large capital grants that the budget department will likely see reimbursements for because those grants were excluded in the original Feb. 26 executive order administered by the Donald Trump Administration.
Capping the county’s exposure, Ramos said, would proactively put the county in a better position while potentially awaiting reimbursement from the federal government.
“We don’t want to be so far over that we’re awaiting $50 million-$100 million in reimbursement and then that would have a real drag on our cash flow and would dramatically change how we approach the next budget cycle,” Ramos said.
Ramos also mentioned other county programs which raised concerns, including a $2 million refugee resettlement program and a motorist assistance program which utilizes nearly 50 sheriff deputies positions backed by federal government funds.
The plan
Harris County's funding plan has three parts, according to county officials.
- The county budget office will maintain a monthly average of $100 million in federal grants that are billed but not yet collected, and will update commissioners court on this amount monthly.
- The county administration and budget offices will work together with a strategic planning committee that will streamline a process for recommending at-risk federally funded programs.
- The grant-funded programs will be paid based on federal funding availability.
Should there be federal funding freezes, county commissioners also approved by a 3-1 vote, a process in place to guide departments to avoid layoffs of grant-funded employees unless approved by the Office of County Administration. Precinct 3 Commissioner Tom Ramsey voted in dissent.
How we got here
Trump issued an executive order Feb. 26 with new guidelines in place regarding federal spending that could impact grant-funded programs, loans and contracts. The order, or what White House officials are calling the “Department of Government Efficiency” cost initiative, outlines “discretionary spending” on certain financial instruments that excludes a handful of spending, including expense related to immigration enforcement, law enforcement, the military and public safety, among others.
The full executive order from the White House can be found here.
