Governor Stein to POTUS

STATE OF NORTH CAROLINA
OFFICE OF THE GOVERNOR

JOSH STEIN
GOVERNOR

February 10, 2025

The Honorable Donald J. Trump
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Dear President Trump,

I write today to convey my serious concern regarding the recent pause in disbursements of federal funds and to communicate to you and your Administration the detrimental effects this funding freeze is having in North Carolina. This pause was first announced in memorandum M-25-13 from your Office of Management and Budget and appears to have continued even after OMB rescinded the memo.

I commend your focus on government efficiency and share your goal to cut wasteful spending, but this OMB memo and its subsequent recission are continuing to cause confusion and chaos across our state. Since the memo was issued, I have received reports from across state government as agencies found themselves frozen out of the portals they routinely access to draw down federal funds. In the immediate aftermath, programs providing health care for vulnerable populations, childcare for families with young children, workforce development for individuals with disabilities, and even access to FEMA funds, ground to a halt as they awaited further guidance from OMB.

While I am grateful FEMA funds were quickly made accessible again and the memo was ultimately rescinded by OBM, the impact continues to be felt across state government, non-profit organizations, and other entities that rely on federal funding to carry out their programs. This week, I continue to receive reports of portals being inaccessible for sporadic periods of time, impeding agencies’ ability to effectively deliver resources to North Carolinians and undermining confidence in the long-term stability of these programs under your administration.

Relatedly, the drastic cuts to the National Institutes of Health (NIH) grants have had immediate and harmful impacts on research, clinical trials, and medical care in North Carolina. Our state is a leader in medical research and development, powering our economy and creating healthier lives for people across the state, country, and world. We cannot afford to slow down this life-saving research or sustain this blow to our economy. I also remain concerned about the chilling effect of the memo, as research institutions and private sector partners have put plans and projects on hold and laid off employees, fearing that funding they had budgeted for will once again be inaccessible to them.

I urge you to direct OMB to clarify its goals around your ordered review of federal spending to end this confusion and provide certainty to North Carolinians who rely on initiatives funded by the federal government, including our veterans, farmers, families, and children. Just as private individuals need to plan their expenditures around their household budgets, states must balance our own budgets. Federal programs are an integral component of our balance sheets.

I look forward to any clarification your office can provide to address these concerns.

Sincerely,

Josh Stein
Governor