From the Austerity Files

Federal programs on hold along with spending bill

Congress' failure to pass a massive spending bill — opting instead to fund the government with a temporary measure — has left dozens of federal programs in budgetary limbo.

Without a secure budget for fiscal year 2011, some agencies have suspended projects long on the books, including a 27-year-old program that helps support food pantries and homeless shelters across the country. A pilot program aimed at helping the elderly stay in their homes also is on hold, and an AIDS drug assistance program will leave thousands on waiting lists.

Lawmakers kept the federal government operating under a so-called continuing resolution that, with a few exceptions, keeps government agencies operating at 2010 funding levels until March.

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Meanwhile, federal agencies are prohibited from funding some grant programs before a full-year budget is approved.

"This ended up being the worst of all worlds for us," said Steve Taylor, vice president of public policy at United WayWorldwide, which administers a federally funded grant program for food pantries and shelters. The program's 2011 allocation has been put on hold.

"People who are in desperate need of shelter and food assistance are not going to get it because of the way this is done," he said.

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The resolution specifically prevented layoffs at the Veterans Administration and the agency that advises the president on telecommunications policy. It protected Pell Grant scholarships to low-income students and some loans to small businesses. It froze salaries for most federal workers for two years.

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It also put a hold on all funding for "nondisaster" grants, programs that would have received $4.5 billion under the omnibus bill, according to the Department of Homeland Security. That includes grants to boost security at ports and railroads, and money to states to improve law enforcement response to terrorist threats.

The resolution also froze funding at last year's level for Head Start early childhood education programs. Without an increase in 2011, 65,000 children could be denied services, according to Senate Democrats, who called the resolution random and irresponsible.