By Bryan Manabat
Saipan-CNMI Gov. Arnold Palacios said the Office of the Budget Management's rescinded memo that called for a pause on all federal assistance programs served as a wake-up call for all states and territories.
“The new [U.S,.] administration is reviewing these programs to make it consistent with their policies. I think it’s a good wake-up call for every state, territories and agencies,” Palacios said.
Matthew J. Vaeth, acting director of the U.S. Office of Management and Budget, earlier this week issued a memorandum directing federal agencies to pause all activities related to obligation or disbursement of all federal assistance to allow the Trump administration time to review agency programs and find the best uses of funding for those programs consistent with the law and the president’s priorities.
Faced with mounting pressure from state governors who challenged the memo in court, the White House rescinded the memo before it went into effect.
Palacios said he was concerned about critical programs such as Medicaid and food stamps. He instructed his department heads to contact their grantors.
“I’m glad the very next day, it was clarified that (these programs) will not be impacted,” he said. “We have ongoing projects in some programs and when the first memo came out, nobody had any idea how that is going to be rolled out. We are glad at least we are getting some clarification and got pulled back and put a pause on it,” the CNMI governor said.
Palacios said he did not have any problem with the initial directive as it also allowed states and territories to review their programming’s performances.
“It is very important for our part to review our performance. Some of our programs’ performances are lagging and some are really doing well," he said.
"Those that are lagging now is the time to get going because when your program gets reviewed and see that you are non-performing you are at risk whether or not an OMB memo comes out, we have to expect that is the case,” he added.
OMB rescinded the memo on Jan. 29 following a stay order issued by a federal court in Washington, D.C.
Palacios said he was relieved when the directive was rescinded. “I think every governor of the states is relieved from that. We were all concerned, I am concerned, just as governors of every state and territory,” he said.
The CNMI government largely depends on federal dollars programs for essential and critical programs including public health and safety initiatives, and educational programs.
Last week, Palacios returned from a trip to the nation’s capital to attend the presidential inauguration and to set the marker for CNMI relations with the federal government.
“The purpose of my trip was to ensure the CNMI is not forgotten during the
first 100 days of the Trump administration,” the governor said last week. “We also wanted to strategize with our new delegate, Kim King-Hinds on what priorities we can work on together.”
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