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Local agencies say they're still waiting for federal funding despite government shutdown ending

Nashville agencies say they await federal funding after shutdown ends
Cold weather and heat assistance
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NASHVILLE, Tenn. (WTVF) — The federal government shutdown may be over, but Nashville-area agencies say they're still waiting for critical funding to resume, leaving vulnerable families without essential utility and emergency assistance as winter approaches.

The Metropolitan Action Commission says it has not received formal word from the Department of Health and Human Services about when federal dollars will start flowing again. Two major funding streams remain on hold despite the shutdown's end.

The Tennessee Housing Development Agency says Tennessee has not yet received its Low-Income Home Energy Assistance Program funds for the new program year, which should have started November 1. This means the state cannot distribute funds to local agencies that provide utility assistance to low-income families.

The Department of Human Services also announced its Community Services Block Grant funding remains suspended, further limiting resources for emergency services including rent and mortgage help.

"When funding is disrupted, things like utility payments are disrupted," said Lisa McCrady Beverly, MAC's Director of Communications and Engagement.

Jamekia Bies, MAC's Executive Director, expressed concern about the ongoing impact.

"We are deeply concerned about the impact this will have on the families and individuals who rely on these essential services," Bies said.

MAC announced a contingency plan on October 30 after learning the shutdown would stall utility assistance and emergency service funds. The agency now operates under strict guidelines, using available funds only for people in crisis situations.

Under current rules, utility bill assistance is limited to applicants who meet the crisis definition — families with young children, veterans, seniors, or those with disconnected power. Other applicants are placed on a waiting list until funding resumes.

"It disrupts resources that are so greatly needed in our community, is very anxious for not only our customers, for us as well," McCrady Beverly said.

The timing creates particular challenges as temperatures drop. For lower-income households, utility bills can consume three times more of their income compared to higher-income families.

"So as we are getting into the colder months, where it's colder for longer periods of time, that becomes a safety issue for individuals who rely on those types of programs," McCrady Beverly said.

The Salvation Army locations in Nashville and Murfreesboro say they're seeing increased demand for food and utility assistance. Food assistance requests have been climbing, and with LIHEAP funds delayed, families struggle to keep homes warm as temperatures dip into the 30s.

Major Bill Mockabee, Area Commander, described the difficult choices families face.

"Families could be facing the devastating choice between feeding their children or heating their homes. Our mission is to make sure no one has to make that choice, but we can only do it with the community's help," Mockabee said.

The Salvation Army's Nashville location provides rent and utility aid during winter months, while the Murfreesboro site offers daily hot meals and monthly food boxes. Staff say meal requests have jumped in recent weeks, highlighting urgent need for nutritious food access.

The organization says need has increased 80% compared to last year across rent, utility, and food requests. The demand spans various demographics.

"We have people who have jobs, who have full time jobs, and they just can't make ends meet. We have individuals who are in homeless encampments," Mockabee said.

The Salvation Army asks for continued financial contributions, which remain in the community to meet immediate needs.

"Our red kettles are getting ready to go out across the community, being able to drop your change in there. That goes a long way," Mockabee said.

MAC says it remains hopeful the funding disruption will end soon but warns that longer delays make it harder to maintain critical services for Nashville's most vulnerable residents.

"Everyone deserves to be housed. Everyone deserves to be able to feed themselves and to work and to do all the things that sometimes people who don't have to think about those things take for granted," McCrady Beverly said.

The agency says it continues accepting energy assistance applications online and offers public computer access at their offices for those who need it. Updates will be provided as soon as funding resumption details become available.

Other MAC programs including Head Start and Early Head Start, adult classes, and the POWER Youth program remain fully operational and unaffected by the funding delays.

Do you have more information about this story? You can email me at Patsy.Montesinos@Newschannel5.com

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