Mayor J. William Reynolds addresses the crowd during his press conference Wednesday. He explained the impacts of the federal funds freeze on the city of Bethlehem. (Natalie Javitt/B&W Staff)

Federal funds freeze causes confusion, mayor and university officials speak out

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President Donald Trump’s administration announced a freeze on all federal funding Monday, prohibiting the federal government from disbursing any grants or aid to nonprofits and federal, state and local governments. 

Bethlehem Mayor J. William Reynolds held a press conference Wednesday at City Hall to address the funding freeze and its impact on the city. Around 45 people attended in person, and over 2,000 people viewed the meeting virtually.  

Reynolds said the freeze is a “destabilizing force” in the city and will prevent public officials from providing social services, halt building projects and reduce the public’s faith in the government. 

Reynolds stressed to those in attendance that everyone is reliant on city services, even those who may believe this freeze won’t impact their lives. 

He said Bethlehem must use local tax revenue to fund the services the city provides, which usually relies on federal reimbursement. 

While the city currently has enough funds to pay for some of the services it provides, Reynolds said Bethlehem shouldn’t have to cover these expenses when federal funds are owed. 

He also said the actions of the Trump administration set a bad precedent of cities paying for services that should be federally funded. 

Reynolds said the funding freeze particularly affects nonprofit organizations, which lack the resources to continue operations without federal support. 

Reynolds then criticized the timing, noting the strain on these organizations in the middle of winter. 

“For (local nonprofits) to lose their funding, for us to have funding paused in the city of Bethlehem, is abhorrent,” Reynolds said. 

While the federal mandate affects all aspects of city funding, Reynolds outlined four key areas affected by the freeze: the police department, community health, returning tax revenue to the community and safety measures for children. 

Bethlehem Chief of Police Michelle Kott then took to the stand to explain how the funding freeze will affect her department. 

Kott said the freeze jeopardizes the salaries of five officers contracted by the Bethlehem Housing Authority to protect residents, and it halts funding for protective gear and updated police car technology. 

Residents of Bethlehem Housing Authority properties are concerned officers will no longer be available, Kott said, but she reassured them the city will do everything possible to maintain services. 

“We made a promise to you, to provide those services, and we will follow through on that promise,” Kott said. “We will get through this and make sure that all residents of the city of Bethlehem are provided high-quality public safety services.”

Reynolds also highlighted the loss of funding for lead pipe removal in homes, missing reimbursements for the purchase of the South Bethlehem Greenway and delays in improving safety on Broad Street for children walking to school. 

He ended his address by urging the Bethlehem community to remain united and not succumb to discouragement.

“The funding freeze feels like a way to cause instability and chaos, to exhaust people,” Reynolds said. “It’s understandable that a lot of people right now are both exhausted and fired up. We don’t have time to be exhausted anymore. We need to stand up for each other.”

In response to questions from attendees, he encouraged citizens to contact their congressional representatives to push back against the freeze. He also urged the community to come together on behalf of those working to improve the city. 

Following the speech, attendees lingered to discuss the address. 

Josie Miserendino, a Bethlehem resident who has lived near City Hall for 11 years, attended the conference. She said she recently received a notice from the Bethlehem Food Co-op about potential funding impacts and wanted to learn what the freeze means for the city.

While the full extent of the freeze remains unclear, she said she appreciated the mayor’s encouragement.

“I have been working on trying to stay positive because it’s so easy to fall into the trapping,” Miserendino said. “I’m trying to stay optimistic.” 

An email was sent to members of the Lehigh community late this morning from Provost Nathan Urban, Donald Outing, vice president of equity and community, and Cheryl Matherly, vice president of international affairs.

The email addressed the recent federal actions affecting higher education, including the funding freeze and bans on diversity, equity and inclusion initiatives

University officials are monitoring the situation, the email stated, and those directly affected have been notified. 

The email also reaffirmed Lehigh’s commitment to maintaining a supportive environment and directed those in need of assistance to campus resources. 

University officials plan to send more information and updates as details about the potential impacts arise. 

Our strength as an institution comes from the diversity of perspectives, experiences and contributions that make up our campus community, and our commitment to fostering a sense of belonging remains firm,” the email stated.

Later in the day, however, federal agencies received a memo stating the funding freeze had been rescinded.

According to The Washington Post, this occurred after a federal judge temporarily halted the freeze on Tuesday. 

White House Press Secretary Karoline Leavitt said while the initial order was suspended, “the administration’s broader efforts to block spending it opposes remain in effect.”

This is a developing story. Please check back for more updates. 

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