JOHN DAY — A Jan. 27 memo by the Office of Management and Budget ordering a pause on government grant and loan spending cast entities that depend on those funds into confusion and uncertainty, including the city of John Day.

The pause aimed to halt and subsequently review programs related to diversity, equity and inclusion, the Green New Deal and other initiatives targeted by a flurry of executive orders issued by President Donald Trump.

One day after the memo was released, a federal judge temporarily blocked the freeze.

The Trump administration subsequently rescinded the OMB memo on Jan. 29, although federal agencies are still required to review grants and other means of funding to determine who remains eligible under the president’s executive orders.

In response, Oregon Democrats released a list of more than 20 programs they say could be at risk due to the pause, such as: food inspections, public safety, disaster relief, medical research, veteran care, schools and more.

In a response to questions about the memo on its website, the White House said assistance to individuals, such as food assistance and student loans, would not be impacted by the pause.

In John Day, the concern is the ongoing effort to build a new wastewater treatment plant without utilizing a bond measure, a strategy that makes both state and federal grant and loan funds essential to the project.

John Day’s grant manager, Nick Ducote, said the freeze wouldn’t be an issue if it lasted merely a few weeks but could become an issue if it persists for months.

“Because John Day also has state funding packages for the treatment plant project, a brief pause or delay in federal grants and loans should not negatively impact the project,” he said.

John Day’s new treatment plant is expected to cost in excess of $33 million. Ducote said $6.5 million in federal funds has already been finalized and committed to the project.

The city is still waiting on $1 million in congressionally directed spending for the project.

Business Oregon is the state’s economic development agency and has more than 80 grant, loan, tax incentive and other programs to further the development of business in Oregon, often in rural communities.

Some of Business Oregon’s programs have federal funds connected to them, but not all. While there was some uncertainty following the initial pause order, Business Oregon said it has had no impacts to the agency’s operations.

“Despite the uncertainty caused by these memos from the federal administration, we have not yet seen any impacts to delivery of Business Oregon programs,” Business Oregon Communications Director Nathan Buehler said.