Nevada’s Democratic leaders say they’re worried recent guidance from the Trump administration could rescind unspent funds from the American Rescue Plan Act, according to comments made during a Wednesday meeting.
Assembly Speaker Steve Yeager and Senate Majority Leader Nicole Cannizzaro, both Democrats from Las Vegas, expressed their concerns while in an Interim Finance Committee meeting that discussed the status of ARPA funds.
Nevada received $2.7 billion from the COVID-19 pandemic-era stimulus package passed in 2021 that sent an influx in cash to state and local governments to address the struggling economy during the pandemic and the lingering effects. The state has spent roughly $1.4 billion so far. The remaining money has been assigned to projects but not spent. States have until Dec. 31, 2026, to spend the rest.
But recent executive orders from President Donald Trump threaten to freeze federal grant and loan programs. A memo from the president’s Office of Management and Budget on Monday night ordered a pause on funding to programs that conflict with other executive orders – which quickly sparked resistance from opponents.
By Wednesday, the directive had been rescinded, though the White House said Trump’s underlying executive orders targeting federal spending in areas like diversity, equity and inclusion and climate change, remained in place.
The Democrats’ concerns came from the confusion that came from the Trump administration’s memos. Cannizzaro said while speaking to state agencies about their funding sources during recent budgetary hearings, she thought “everybody was about as clear as mud” about how federal directives could impact them.
Brody Leiser, a fiscal analyst for the Assembly, said during a presentation that the state was “unaware” of any directives from the federal government that could affect ARPA funds.
“Any funding that’s been remaining that’s been unexpended is in the hands of the state,” Leiser said.
Senate Minority Leader Robin Titus, R-Wellington, said in Wednesday’s meeting despite the confusion, it appeared the obligated but unspent funds seemed to be sitting in state coffers awaiting their assigned use.
“I know there’s a lot of worry and a lot of panic out there about where we are – I’m not sure anyone really knows for sure as the dust settles,” she said. “But we do know we have this fund in bank accounts, earning interest for the state of Nevada and they’re there.”
Legislative Democrats then pushed back.
“The federal government could always revise guidance, pull back money,” Yeager said, adding how one of Trump’s executive orders specifically referenced the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, two major pieces of legislation signed by President Joe Biden.
“My advice to state agencies and folks would be ‘spend as quickly as you can,’ because the federal government can reach in do whatever they want with this money.”
Republican Gov. Joe Lombardo’s team took a “wait-and-see” tone Thursday.
“The Office of the Governor is in communication with the administration to gain visibility into what programs might be impacted by federal action and to advocate that funds currently obligated to the state are fulfilling their intended purpose,” spokesperson Elizabeth Ray said in an emailed statement. “While the discussions about the federal freeze are ongoing, it’s important to reiterate that programs that provide direct benefits to Nevadans – like Medicaid, Medicare, NSLP, SNAP, and Head Start – are continuing without interruption.”
Contact McKenna Ross at mross@reviewjournal.com. Follow @mckenna_ross_ on X.
