MAC Responds to Federal Shutdown with Contingency Plan to Sustain Services

As the federal government shutdown continues to impact program grants nationwide, the Metropolitan Action Commission (MAC) has received official notification from both the Tennessee Housing Development Agency (THDA) and the Tennessee Department of Human Services (DHS) regarding disruptions to key funding streams that support vital
community services.

• THDA has confirmed that the state has not yet received its Low-Income Home Energy Assistance Program (LIHEAP) funds for the new program year which would have begun on November 1 and is therefore unable to distribute them to local agencies.
• DHS has announced that Community Services Block Grant (CSBG) funding will be suspended effective Friday.

"We are deeply concerned about the impact this will have on the families and individuals who rely on these essential services," said Jamekia Bies, Executive Director of Metro Action.

Despite these challenges, MAC has activated a contingency plan that ensures continued operations across its programs. This includes maintaining staff coverage for all program positions, including part-time employees.

Program Adjustments During the Shutdown:

Utility Payment Assistance: Assistance with utility payments will be limited to applicants who meet the crisis criteria as defined by THDA. Applicants who do not meet this definition will be placed on a waiting list until full funding is restored or additional guidance is provided. Additionally, the online application portal will be unavailable until November 3 due to the launch of a new statewide software system.

Emergency Assistance: Support for Emergency Assistance Programs funded by the CSBG grant-including rent, mortgage, property tax, prescription assistance, and other emergency services-may be limited during this period.

The federal CSBG funding that MAC receives to provide emergency assistance is typically expended quickly due to the rising cost of housing in Nashville. To help meet the increasing demand, MAC also receives supplemental funding from the City of Nashville, which plays a critical role in ensuring that residents remain safely housed.

"Beginning the program year relying on supplemental funds is deeply concerning, as it challenges our ability to continue supporting those most at risk of housing instability, especially if this becomes a longer-term issue," said Bies.

Metro Action remains hopeful that the impact on its grants will end soon. However, the longer the federal shutdown continues, the more difficult it will become to maintain critical services for one of the city's most vulnerable populations.

All other MAC programs, including Head Start/Early Head Start Preschool program, adult education classes and the POWER Youth programs remain fully operational and unaffected.