Nonprofit Funding Freeze Impact Services Nationwide

Last week nonprofits received a sweeping directive from the current administration to pause federal loans, grants and other financial assistance, that would be devastating to nonprofit advocacy groups and the Americans they support nationwide. 

U.S. District Judge Loren AliKhan ordered to not to block "open awards," or funds already slated to be disbursed. However, the order does not block the Trump administration from freezing funding to new programs, or requiring nonprofits to restart funding applications that they have previously qualified for.

The National Council of Nonprofits, the American Public Health Association, and Main Street Alliance believe the Office of Management and Budget (OMB) lacks the authority to unilaterally terminate all federal financial assistance programs across the federal government.

Matthew Vaeth, OMB's acting director, said the money would be put on hold while the administration reviews grants signed to end diversity, equity and inclusion programs.  The current administration also said programs delivering critical benefits to Americans would not be affected – only adding to the confusion as nonprofits navigate the policy changes and how they will impact the programs and support nonprofits provide nationwide.