Louisiana Governor Jeff Landry says his administration is working to find out how President Donald Trump's executive order mandating a federal funding freeze would impact the state and its programs.
On Tuesday, Trump signed an executive order pausing all federal loan and grant payouts. A judge put that order on hold pending a lawsuit filed against the Trump Administration by several non-profit organizations. Several states have filed their own separate lawsuit challenging the edict. Trump rescinded that order on Wednesday.
In a statement, Landry said he and other state officials are monitoring the situation.
“President Trump was elected on a mandate to cut government waste and increase the impact of every federal taxpayer dollar, a goal we wholeheartedly embrace," Landry said in a statement he released along with Treasurer John Fleming, Senate President Cameron Henry, and House Speaker Phillip DeVillier. "Our administration is thoroughly evaluating President Trump’s new order and seeking clarity as to the depth of this action. We believe that we are placing adequate resources into the state coffers to ensure stability for the time being. We urge OMB to develop a responsible runway to untangle us from any unneccesary and egregious policies without jeopardizing the financial stability of the state.”
One expert says Landry's fears of financial instability in state government would become reality if Trump resurrects the funding freeze.
"This hit states like a neutron bomb," Invest in Louisiana executive director Jan Moller said to WWL's Tommy Tucker. "Louisiana gets more federal funding on a per-capita basis than about any other state."
According to the Pew Charitable Trusts, more than 52 percent of Louisiana's revenue comes from federal funding. Moller says Trump's edict would have stripped the state of money it needs keeps schools, hospitals, and other institutions open.
"It would cause absolute wide spread harm to people, to families, to students, to veterans, to public safety, to schools, universities, (and) researchers," Moller said. "There's literally hundreds of programs that get funded by the federal government that affect people on the ground in Louisiana."
Moller says those cuts would have hit the poor, the disabled, and the elderly the hardest.
"Students with disabilities who get support from their school districts, transitional housing, (or) programs like Meals on Wheels or programs that help senior citizens with disabilities get rides to their doctor's appointments," Moller said. "There are millions of people's lives that would become much harder if this happens."
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