MARSHALL — While a federal judge ordered a delay on the Trump Administration’s freeze on federal funding, officials in Lyon County expressed confusion and concern over possible impacts on programs and projects.

The Trump administration on Tuesday announced the across-the-board ideological review of the country’s spending, and to comply with Trump’s executive orders.

According to a release from the Office of Management and Budget under the executive office of the president, the freeze does not include programs that directly benefit Americans like Social Security, Medicare, Medicaid, farmers, Head Start, small businesses and other similar programs.

Meanwhile, Minnesota Gov. Tim Walz warned of the possibility that several states will plan a lawsuit to block the order.

“We will see President Trump in court,” Walz said in a statement.

The Independent reached out to officials from the city of Marshall, county, schools and other organizations dependent on federal funds.

Marshall City Administrator Sharon Hanson said it’s still unknown how a pause in federal grant funding could affect city projects.

“We don’t know the full extent or the impact on us,” Hanson said. “We are concerned, because we have projects that do rely on federal funding.”

For example, federal grant funding was playing a role in construction of a new building at the Marshall airport, which would house snow removal equipment. The project received an Airport Improvement Grant of $744,249 and an Airport Infrastructure Grant of $832,959.

The total of more than $1.57 million in federal grant dollars did not include additional federal funds used for project design, Hanson said. Those funds were already spent, and the grant was closed, she said.

Part of the funding for planned reconstruction on Minnesota Highway 19 (College Drive) in Marshall also comes from a $15.4 million grant through the U.S. Department of Transportation’s Rebuilding American Infrastructure with Sustainability and Equity (RAISE) program. Of that $15.4 million total, $2 million is directly located to local infrastructure, Hanson said.

When the Highway 19 project was awarded the RAISE grant in 2023, city officials said it would allow for reconstruction of a longer stretch of Highway 19 within city limits.

School districts are also working to gain more perspective on the matter.

The Marshall School District relies on federal funds for a few programs like reading interventions, professional development, language support and other grants.

“The timing of this pause and ultimate decisions going forward leave us with more questions than answers right now,” Marshall Superintendent Jeremy Williams said. “Most of our funding comes from state and local sources, so we do not anticipate any immediate change in the services we offer while the federal government works through this executive order.”

Minneota Public Schools, which receives federal funding in similar programs, also is working to learn more of the impact this could have on education.

“This situation is, at a minimum, concerning, as the decision to implement a federal funding freeze could have far-ranging and serious consequences for schools, including the potential for reduced programming, staffing, and opportunities that our students need and depend on,” Minneota Superintendent Scott Monson said. “We will definitely be watching this closely as it unfolds and as we learn more, to determine exactly what impact it will have on our students, families, staff, and district.”

Direct student loans for higher education, at this time, will not be affected.

“Although there are many questions, we know that the temporary pause created by the OMB memo does not impact Title IV funds that are provided to individual students, such as federal pell grants and direct loans,” said Noelle Hawton, chief marketing and communications officer for Minnesota State. “Minnesota State will continue to work with our federal partners, national associations, and members of congress to navigate through the implications of this order and advocate for the ability of our students to continue towards their educational goals.”

For some county-level services, the pause on federal grants will not have an impact.

“For Lyon County Veterans Services, we do not receive direct federal grant funds,” said Lyon County Veterans Services Officer Heidi Fier.

“So, there would not be an impact at the direct county level,” Fier said. “We have an inquiry in to the Minnesota Department of Veterans Affairs for their response at a state level impact.”

“I don’t think, at this point, the county is going to be negatively impacted,” said Lyon County Administrator Loren Stomberg. “Most of the federal funding we get goes out to our highway department,” Stomberg said. “Right now, the county does not have any major construction projects planned using federal grant dollars.”

Nancy Walker, deputy director of Southwest Health and Human Services, said agencies like SWHHS still don’t know a lot about how a pause in federal grant and loan funding could impact them.

“We’re really waiting for more information from the Minnesota Department of Health, and the Department of Human Services,” Walker said. “We believe things like SNAP (the Supplemental Nutrition Assistance Program) will be OK because those are direct payments to individuals.”

The memo from the Office of Management and Budget also stated there would not be a freeze to SNAP.

The state of Minnesota receives $1.9 billion in federal funding every month.

“Minnesota will do what we can to keep the lights on, but we cannot fill the nearly $2 billion hole this will put in the state budget each month. I do not believe this decision was constitutional and we will work diligently to reverse it,” Walz. “I have reached out to the President and his supporters in Congress seeking answers … Shutting off this funding will have a devastating impact on peoples’ lives — from cancer patients, to securing our prisons.”