Action Alerts: Federal Funding
More than 50 lawsuits are challenging the Administration’s executive orders, including these affecting nonprofit funding:
1. Undermining NGOs
Updated February 9, 2025
Read TNPA’s press release here.
On February 7, the White House issued an executive action ordering federal departments to stop funding nongovernmental organizations (NGOs) that, in the administration’s opinion, undermine the national interest. The heads of executive departments and agencies are ordered to review all funding to NGOs to align future funding decisions based on the current administration’s priorities.
The Nonprofit Alliance strongly opposes the executive action, which casts a baseless and harmful shadow over the work of NGOs at home and abroad. These organizations are on the front lines addressing critical issues such as disaster relief, public health, education, and human rights—work that aligns with the values and principles of the American people.
Labeling NGOs as undermining national interests while tying funding decisions to undefined and shifting political priorities jeopardizes essential services and vulnerable communities that rely on them. This action introduces uncertainty and political bias into a funding process that should prioritize impact and accountability above ideology.
The nonprofit sector has long been a trusted partner in advancing American values, supporting security, and fostering global stability. We urge the administration to reconsider this misguided policy and instead focus on strengthening the vital partnerships between government and NGOs that serve the best interests of the nation and the world.
2. Dismantling USAID
Updated February 13, 2025
On February 13, U.S. District Judge Amir Ali ordered the disbursement of withheld foreign aid, noting the absence of “any explanation for why a blanket suspension of all congressionally appropriated foreign aid, which set off a shockwave and upended reliance interests for thousands of agreements with businesses, nonprofits, and organizations around the country, was a rational precursor to reviewing programs.”
Resources:
Guide for USAID Stop Work Orders
We are leveraging our bipartisan relationships on Capitol Hill, particularly the US Senate, and they’re asking for your involvement.
3. Freezing Federal Funding
Updated February 15, 2025
On February 10, U.S. District Judge John McConnell in Rhode Island ordered the Administration to “immediately” unfreeze domestic spending until he determines whether the temporary restraining order he issued on January 31 will extend through the period of ongoing legislation. A similar temporary restraining order was also issued on February 3. The White House Office of Management and Budget (OMB) is enjoined from implementing, giving effect to, or reinstating under a different name its directive to halt federal spending broadly.
This comes in response to the OMB’s memo issued on January 29 directing federal agencies to “temporarily pause all activities related to the obligation or disbursement of all Federal financial assistance, and other relevant agency activities, that may be implicated by [President Trump’s] executive orders.”
New Research: Donor Attitudes Toward Federal Funding
In Q4 2024, TNPA surveyed 2,500 U.S. adults to understand public attitudes toward nonprofit federal funding — research that comes at a crucial moment as our sector grapples with widespread disruptions to federal grants and programs.
Our study reveals several encouraging findings and point to clear actions we can take to protect and strengthen public support for federal funding. You can download the eight-page report here.