PENDLETON — Although the White House rescinded the pause on federal grants, loans and other aid, confusion looms as a Pendleton Urban Renewal project waits for approval. 

The Oregon Department of Environmental Quality approved a $1.89 million Climate Pollution Reduction Grant for the city of Pendleton. The grant will fund the conversion of existing buildings into residential housing, reducing gas emissions and providing affordable housing to low-income families. 

The Environmental Protection Agency administers the program under the Inflation Reduction Act. Oregon was approved for more than $197.1 million in CPRG funding, with nearly $25.5 million allocated to building reuse and space-efficient smaller housing projects.

Pendleton, in partnership with the DEQ, is receiving funds, alongside Ontario, Reedsport, Medford and Portland. 

Pendleton Urban Renewal Associate Director Charles Denight said the city was chosen because it already had a successful building grant program through urban renewal, which aligns closely with the goals of the DEQ program.

Denight’s remaining task was to sign an intergovernmental agreement to receive the grant.  

However, Matthew Vaeth, acting director for White House Office of Management and Budget, issued a memorandum Monday, Jan. 27, imposing a sweeping freeze on federal grants, loans and other aid. 

The freeze was set to take place Jan. 28 at 5 p.m.

The memo also states agencies must submit “detailed information on any programs, projects or activities subject to this pause” by Feb. 10.  

The White House Office of Management and Budgets also circulated a 52-page spreadsheet listing thousands of federal grants and loan programs, which included the CPRG funding under the EPA. 

U.S. District Judge Loren L. AliKhan temporarily blocked the federal funding freeze ensuring that federal agencies, states and other organizations continue to receive money from the federal government with a more permanent decision expected on Feb. 3. 

The DEQ responded in an email to Climate Pollution Reduction Grant recipients, stating it is uncertain whether the federal freeze on funding will affect the funding. The organization and governor’s office are closely tracking the funding status, DEQ added.  

“In the meantime, our current direction from EPA is to proceed as normal to implement the grant,” DEQ said in the email. “All of the funds for Oregon’s CPRG implementation grant are fully obligated through an existing contractual agreement between DEQ and EPA dated Oct. 17, 2024.”

DEQ said it will keep all the recipients informed of any communications or updates the organization receives.

“I feel it’s really so much up in the air,” Denight said. “I mean there’s a feeling of chaos right now. There’s a lot of people that are going to be affected by these grants and loan freezes, but this is something that would help this town.”

NPR reported, Jan. 29, Vaeth notified federal agencies the Jan. 27 federal financial assistance program funding freeze memo has been rescinded.

Later that day, White House Press Secretary Karoline Leavitt posted a statement on X, clarifying the rescinded memo. 

“This is NOT a rescission of the federal funding freeze,” Leavitt said on X. “It is simply a rescission of the OMB memo. Why? To end any confusion created by the court’s injunction. The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented.”

NBC News reported, when OMB rescinded the memo, it technically rescinded the blanket freeze on all federal assistance pending review. 

President Donald Trump signed several executive orders since taking office Jan. 20 to pause or end some federal funding. The orders, which remain in effect, include freezing foreign aid, funds to federal grantees who received money for diversity, equity and inclusion-related purposes and all funds appropriated through the Inflation Reduction Act, NBC News reported. 

According to the White House, those freezes remain in effect.

The deadline for all agencies to submit their form for federal funding grants, loans and aid to the Office Management and Budget for review remains Feb. 10. 

Denight said he’ll have to wait and see on the status of the Climate Pollution Reduction Grant in the coming weeks.