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His administration has issued a freeze on all government loans and grants (AP) ... “This order is a potential 5-alarm fire for nonprofits and the people and communities they serve.
On January 27, 2025, a memo was released by Matthew Vaeth – acting director for the Office of Management and Budget (OMB) of the Executive Office of the President of the United States – ordering federal agencies to "temporarily pause all activities related to obligations or disbursement of all Federal financial assistance" prior to 5 P.M. EST on the following day. [1]
Advocacy groups for nonprofits, health organizations for small businesses told a federal court Trump's pause in grant funding could be 'catastrophic' ... pausing federal grants and loans is facing ...
Homeland Security Secretary Kristi Noem announced Wednesday the department has stopped all grant funding to nonprofits that operate outside of government control, saying they have been "perverted ...
Then Monday, the new Trump administration announced a freeze on all federal loans and grants, though that pause has been rescinded. Nonprofits of all sizes are now grappling with how these changes will impact their missions — with some even stepping in to replace a very small part of the funding the U.S. government is withholding.
Nonprofit groups launch a challenge. A coalition of nonprofit groups filed a lawsuit Tuesday against the funding freeze. The nonprofit Democracy Forward, a public interest litigation group, wrote that the White House’s memo fails to explain its legal authority "to gut every grant program in the federal government.”