A report indicated layoffs in federal agencies by the ad hoc Department of Government Efficiency could affect a significant number of Ohioans and substantially undercut the state's budget.

There are approximately 114,000 federal employees in the state. A Center for Community Solutions study found if all federal employees in Ohio were to lose their jobs, the unemployment rate would increase by almost 40%.

Dylan Armstrong, public policy fellow at the Center for Community Solutions, said it would have a profound effect on many state agencies and potentially cause service interruptions.

"For federal fiscal year 2021, almost $58 billion of investments through all the different federal agencies," Armstrong pointed out. "The state doesn't have the capacity to replace those dollars. No one has the capacity to replace the dollars."

The report examined federal employment and funding by Ohio congressional districts. Armstrong noted Congressional District 6 in Appalachian East Ohio receives the most federal funding, at $6.4 billion, while District 10, with Wright-Patterson Air Force Base, has 20,000 federal employees.

Armstrong underscored the three largest federal agency outlays in Ohio are from the Departments of Education, Agriculture and Health and Human Services. He said H-S cuts could have the most ripple effects, as they fund programs such as Medicaid, assistance to families, Head Start and research at universities and medical institutions.

"If there's researchers at a university in Ohio who are receiving federal funding from the National Institutes of Health to do a research project, if that funding dries up that's their job," Armstrong stressed. "That's how they get paid. That's how they do their research."

The report showed 76% of federal resources in Ohio are distributed through state, township, county or other local government districts. Armstrong added those entities would be responsible for making up the loss of revenue.

"At the end of the day, you'd need more revenue and that can only come from so many places," Armstrong acknowledged. "A likely place would have to be increasing taxes on taxpayers if we wanted to continue to have the same level of service."

Reporting by Ohio News Connection in association with Media in the Public Interest and funded in part by the George Gund Foundation.


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Minnesota lawmakers this session are emphasizing new protocols to shield state agencies from fraud. A watchdog group says so far, it appears they're on the right track.

The motivation to address this issue is tied to the high-profile "Feeding our Future" case, when dozens of people were accused of stealing pandemic relief money intended for kids' meals. It's estimated roughly $250 million was misspent, and dozens of convictions have since followed.

At the state Capitol, both Republicans and Democrats have openly discussed the need for tighter controls, which is encouraging to Matt Ehling, a board member for Minnesotans for Open Government.

"It's been a growing problem for quite a few years now," he said, "so it's nice to see that both sides of the aisle are focused on this issue this year."

One bill calls for a new state Office of Inspector General to get ahead of suspicious behavior. Ehling said the Office of Legislative Auditor does good work, but sees the need for another arm that goes beyond reviewing problems after the fact.

A separate proposal could stir backlash by no longer awarding some grants to nonprofits without a bidding process. Backers of keeping that option have argued it helps smaller groups in underserved areas get access to funding.

The Minnesota Council of Nonprofits has said it agrees that state funds must be used for their intended purpose, but worries some restrictions would make inequities worse.

Ehling said it's unfortunate that, at the height of the pandemic, federal relief packages meant to help people in need were targeted by fraudsters.

"Bad actors were able to take advantage of that, because the money was coming in so fast," he said, "and the resources to oversee the money were simply not appropriately put in place."

When those COVID spending packages were approved, states were tasked with distributing aid. Ehling's group hopes that if there's a new Office of Inspector General, it will operate with transparency. And a bipartisan group of lawmakers has said that with grant reforms, there should be assurances that smaller community groups are given a fair shot.


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AARP says it's getting thousands of phone calls from seniors worried about getting through to Social Security, as program operations are dramatically overhauled by the Trump administration. The concern is being felt in North Dakota. From staffing cuts to pursuing the closure of nearly 50 regional field offices, the White House and top advisor Elon Musk are seeing backlash over these moves. There are reports of wait times stretching several hours. It comes amid a new requirement that says beneficiaries can no longer verify their identity by phone. They have to do it in person or online.

Josh Askvig, state director of AARP North Dakota, says that could be tough in a largely rural state.

"It would be possible that folks would have to drive three to four hours or more to get to a location. And if you're not comfortable working with apps on your iPhone or Android device, you're looking at potentially a full day of driving, and that's a significant barrier," he explained.

The national AARP says it's fighting to protect these services, so that monthly payments aren't disrupted. It also calls on the administration to scrap the new verification rule and restore the phone option.

The White House says it's trying to root out fraud while insisting benefits won't be cut. But Democrats argue these changes will lead to missed or late checks for beneficiaries.

Askvig said the chaos that's unfolding could lead to another problem lurking in the shadows.

"We're also concerned that this change will lead to scammers using the confusion the agency has created around this to potentially exploit and prey on Americans as well," he added.

AARP and other senior advocates hope their allies reach out to Congress to intervene. They say Social Security operations have been under-resourced for some time, and they hope their renewed calls for service improvements turn more heads amid public frustration. Nearly one in six North Dakota residents receive Social Security benefits.

A federal funding freeze affecting a broad swath of U.S. programs has left many organizations in limbo, with new fallout coming every day. Court challenges have so far stalled many impacts of the Trump administration's order to end or reduce government grants, loans and other assistance.

Isaiah Torres, statewide policy manager with the state's Center for Civic Policy, says New Mexico is fortunate to have a large Land Grant Permanent Fund and Early Childhood Trust Fund. He believes they give the state some maneuverability others may not have.

"Not relying so much on general-fund revenue - in categories such as education and health care - to allow us to make strategic decisions moving forward," he explained.

New Mexico Attorney General Raul Torrez joined a lawsuit with 22 other states to block Trump's order, which claims the president doesn't have the authority under the U.S. Constitution to take money away from the targeted programs. The White House said the freeze would give the administration time to review each agency program to determine the best use of funding.

Alissa Barnes, executive director with Progress Now New Mexico, says the freeze is nonetheless creating chaos and uncertainty. And not every program that receives federal funding is likely to get a reprieve.

"It is all encompassing for how New Mexico is able to support New Mexicans. And a lot of the dollars that the state puts up in their general allocation also relies on matching funds or grants from the federal government," she explained.

Barnes previously worked for the state's Roadrunner Food Bank - one of thousands across the country already affected by the government's halt in shipments of produce, poultry and other items distributed to needy residents.

"Not knowing if money is going to stop, not knowing when it might stop - not knowing any of those details makes it really hard to not only plan but to continue providing direct services," she continued.

Infrastructure projects funded by the Biden administration also are in jeopardy. New Mexico was awarded $156 million in grants last year for solar projects to help low-income, disadvantaged and tribal communities decrease energy costs by reducing household electric bills. Without federal funding, many won't go forward.