WASHINGTON, D.C. – U.S. Senator Peter Welch, a member of the Senate Finance Committee, this week urged the Office of Management and Budget (OMB) to halt President Trump’s unilateral federal funding freeze, which is inflicting serious and lasting harm on Vermont farms, families, and businesses. In his letter, Senator Welch uplifted the concerns of Vermonters who attended a recent roundtable about how the funding freeze has impacted them. 

The Trump Administration’s pause on federal funding, which was announced without warning or legal authority, has blocked Vermont state agencies and organizations from federal funding and has led to layoffs. The Administration has not restored access to payment portals for some organizations, defying court orders. On Tuesday, a senior Trump Administration FEMA official ignored a federal judge’s order to suspend the freeze for a wide array of grant programs. 

“On Friday, January 31, 2025, I held a roundtable with Vermont stakeholders who shared their perspectives on the impact of the funding freeze. The stakeholders—non-profits, small businesses, and farmers that represent a range of sectors including health care, housing, education, and agriculture—shared how the freeze is already impacting their work,” wrote Senator Welch. 

“The funding freeze is also hurting state agencies and local municipalities. Just last week, the Vermont Agency of Natural Resources reported being unable to access several of its federal accounts—including those that fund clean water and land and water conservation,” continued Senator Welch. “Additionally, the town of Killington, Vermont, which was awarded a transformational $25 million infrastructure award to redevelop its downtown, has had its grant funding frozen. The town was told that the previously agreed to construction deadlines must remain in place, without any indication of whether construction costs will be reimbursed.” 

Senator Welch concluded: “Federal funding comprises 36% of Vermont’s budget. The state relies on nongovernmental entities that receive federal funding to deliver critical services to Vermonters, from Meals on Wheels to housing for unhoused youth, to childcare for unserved rural families. The Administration’s funding freeze and ensuing chaos are already having concrete negative impacts on the people of Vermont. I urge you to immediately reverse the funding freeze order and turn the payment portals back on.” 

Read the full text of the letter. 

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