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The threat of federal funding freezes and cuts put local nonprofits on edge

What does the future hold art
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NASHVILLE, Tenn. (WTVF) — The Trump White House on Wednesday appeared to walk back an order that froze money for federal grants.

But minutes later, the White House Press Secretary said that wasn't so.

This left groups that rely on that funding to help people in countless ways all across the country confused and scrambling.

Local nonprofits with multi-million dollar budgets count on this funding. Leaders of food banks, shelters, and social programs told us they were unclear and uneasy about how this freeze would impact their futures and finances.

Based in Nashville, Family and Children's Service is a safety net for people in crisis. The large staff helps people with everything from mental health emergencies and the 988 line to making ends meet and navigating programs like TANF and the Affordable Care Act. Every year, the agency supports 90,000 Tennesseans.

Although the White House Office of Management and Budget rescinded the federal freeze on loans and grants, which would've paused funding to any program that conflicted with any of the president's other new executive orders, the initial confusion already caused a disruption.

"Our staff need to be fully present and not wondering well, the fact that we have staff who speak this language or are using the language line, is that going to be a problem with our funding?" said Michael McSurdy.

Michael McSurdy, the CEO of Family and Children's Service, said close to 90 percent of the organization's $20 million budget is covered by federal or pass-through grants.

While some of their 18 to 19 contracts are for programs that cater to a specific demographic, the executive order on funding was difficult to decipher.

"Does that create a tension? There was just no way of knowing. So, even if something were not explicit, and I believe that there are explicit programs that are hugely needed, but even if our program wasn't explicitly an issue, or a concern, or a priority, there was really not a way of knowing was it still going to need to be revised? Was it no longer going to be supported? We just had no way of knowing," McSurdy said.

Partners, including food banks like Second Harvest, are asking the same questions. Second Harvest sent us a statement on Wednesday morning, which read in part no one should have to worry about where their next meal will come from due to circumstances beyond their control.

"For each of those programs there are hundreds of people depending on them every day," McSurdy said.

Do you have more information about this story? You can email me at hannah.mcdonald@newschannel5.com.

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