County Assessment of Proposed Federal Funding Freeze

Released: February 7, 2025

County Assessment of Proposed Federal Funding Freeze: No Immediate Impact on County Services

Although the funding freeze was largely rescinded, recent executive orders have paused several federally funded County projects

During the Wednesday, February 5 Delaware County Council Meeting, Delaware County Executive Director Barbara O’Malley provided an update on recent federal funding developments, reassuring Council and residents that despite concerns over a proposed federal funding freeze, County services remain fully operational.

O’Malley explained that a federal order had been issued to pause all federal funding—excluding Social Security and Medicare—but was rescinded before implementation. Given that federal funds support a significant portion of County services, this reversal prevented potential disruptions. In response to the initial uncertainty, the County has been actively assessing its federally funded programs to prepare for any future changes.

Federal Funding and County Services

Delaware County relies on federal funding for a variety of critical services, including:

Bridge Infrastructure: Two major bridge projects—County Bridge #12 (Madison Road) and County Bridge #36 (Reed Road)—are 100% federally funded and would have been impacted by a funding freeze.

Capital Projects: The County was awarded a federal grant for improvements to the 1724 Chester Courthouse and a $400,000 grant for Government Center relighting, which will replace common area lighting with energy-efficient LED fixtures.

Fair Acres: The County-owned nursing home relies almost entirely on federal funding to support its $75 million budget, with nearly 90% of residents on Medicaid.

Health and Human Services: Over $225 million in federal funding supports critical services such as:

• Child and senior abuse investigations
• Early intervention programs for infants and children
• Drug and alcohol treatment and prevention programs
• Rental assistance, homeless shelters, and community housing initiatives
• Maternal and child health services
• Disease prevention efforts, including mosquito control, STD/HIV/TB testing, and treatment services

While no immediate changes have affected these services, the County is continuing to review funding sources, as some state-allocated dollars may include federal pass-through funds.

Programs Affected by Executive Orders

Although the funding freeze was avoided, recent executive orders have paused several federally funded County projects, including:

• Reconnecting Communities Grant (Route 291, Chester) – A project to improve roadway safety, pedestrian and bike infrastructure, and stormwater management is on hold.
• Safe Routes to School Grant – A federally funded program to install low-cost safety improvements near schools in Southeast Delco and Chester Upland School Districts has been paused before contract completion.
• FEMA Technical Assistance (Darby Creek Flooding Study) – A FEMA-led needs assessment on flooding solutions is currently on hold.
• Lead Hazard Reduction Program (HUD) – The County’s collaborative effort with HUD to reduce lead exposure in housing has been delayed due to paused federal grant agreements.
• Housing and Community Development Initiatives – Several accessibility improvement and fair housing education projects may be impacted, and County officials are awaiting federal guidance.
• Workforce Development Programs – Grants to support minority-, women-, and veteran-owned businesses, as well as an apprenticeship program, have been modified to maintain funding and continue operations.

Looking Ahead

O’Malley emphasized that most County services remain unaffected, and that funding is expected to continue as usual. However, the County is closely monitoring the situation and working with regional partners, federal agencies, and other counties to assess potential long-term impacts.

“We want to deliver these critical services to residents while ensuring compliance with federal requirements,” said O’Malley. “If any funding changes occur, we are prepared to respond appropriately and will continue working with our partners to advocate for Delaware County.”

County officials will provide further updates as necessary and continue efforts to protect vital programs that support residents.