$863 million in limbo

HUD’s $863 Million in Limbo Tonight

1/29/25 – $863 million in HUD funds sit in limbo tonight. Just last Friday, Harris County Flood Control (HCFCD) finally presented its long-awaited list of flood-mitigation and disaster-relief projects to Commissioners Court. They totaled that amount.

But by Monday, a series of presidential executive orders targeting diversity, equity and inclusion (DEI) programs put the future of those projects in jeopardy.

$863 million in limbo
Thousands of homes flooded in Kingwood during Harvey, but after 7.5 years, HCFCD has not constructed one flood mitigation project in the community.

Everyone Scrambles to Understand OMB Memo and Its Impact

On Monday, the White House Office of Management and Budget (OMB) announced that it paused funding for trillions of dollars in grants. Reportedly, the pause affected many HUD programs.

The OMB memo said that Federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance.” 

On Tuesday, the New York Times reported, “The Trump administration’s order … prompted confusion across state capitols and local government offices, leaving them at a loss on how to even calculate its impact.”

Then late Tuesday afternoon, a federal judge temporarily blocked part of the Trump administration’s grant freeze.

After the flurry of concerns raised Tuesday, dozens of media outlets reported around noon today (Wednesday) that OMB had rescinded the pause order.

Rescission of the Rescission

But less than two hours later, The Hill quoted White House Press Secretary Karoline Leavitt as saying, “This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo. … The President’s executive orders on federal funding remain in full force and effect, and will be rigorously implemented.”

Before the rescission of the rescission, I talked to official sources at the local, state and federal levels.

  • A Flood Control District spokesperson thinks that the $863 million is not in jeopardy. She said that everyone is moving forward as though the money were still committed.
  • Likewise, U.S. Congressman Dan Crenshaw’s office feels the chances are slim that Trump would revoke earmarks already approved by Congress. Crenshaw previously secured part of the funding for the Woodridge Village/Taylor Gully project in Kingwood, one of the projects on HCFCD’s list.
  • The Texas General Land Office (GLO) also feels the chances of the money being pulled back are slim. GLO hopes that any changes made in Washington would improve efficiency in the grant process.

While we sort this out, we should remember that the $863 million in HUD funds come with some very tight deadlines. Not one of the three sources above knew yet whether those deadlines would be extended because of a pause in funding federal grant applications. So uncertainty reigns.

How Did We Get Here?

Kingwood provides a clue. Ever since the passage of the 2018 Harris County Flood Bond and the County’s first Equity Prioritization Framework, I have tracked the Harris County Flood Control District’s spending by watershed.

I watched Precinct 1 Commissioner Rodney Ellis rant about how “Kingwood was getting all the damn money.” Yet Kingwood has received only $230 in capital improvement construction funds while the Brays Bayou Watershed where Mr. Ellis lives has received $206,576,424 between Harvey and the end of 2024 … all in the name of equity. That’s almost a million times more.

But denying aid to predominantly white neighborhoods may have backfired on Mr. Ellis. Only 50% of the HUD money had to benefit LMI residents. But like others who benefitted from DEI initiatives across the country, Ellis kept pushing for more.

He insisted on 70% while excluding projects in predominantly white and middle class areas. And that has fueled resentment among people who received virtually nothing for their taxes.

Of course, Ellis alone didn’t generate a backlash that catapulted Trump into the White House. He had plenty of help nationwide from others pushing the DEI envelope as he did.

And now Trump is delivering on campaign promises – terminating people, policies and programs relating to DEI.

Fairness for All Needed, Not Winner-Take-All Mentality

Perhaps had politicians like Ellis treated everyone fairly and not pushed their advantage so egregiously, we wouldn’t be in this mess. We need a “fairness for all” mentality that replaces the “winner take all” mentality currently pervading our politics.

Long before Abraham Lincoln said in 1858 that “A house divided against itself cannot stand,” Jesus used the phrase. He said in the Gospel of Matthew 12:25, “Every kingdom divided against itself is brought to desolation; and every city or house divided against itself shall not stand.”

Surely, there’s a way to divvy up the HUD money that benefits all the residents of Harris County. Withholding it all simply penalizes everyone.

In the meantime, we potentially have $863 million in limbo doing no one any good.

Posted by Bob Rehak on 1/29/2025

2710 Days since Hurricane Harvey

The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.