By now, you’ve probably already heard the news that the Trump administration has ordered federal agencies to pause the disbursement of federal grants and loans by 5 p.m. on January 28th.
The situation is continuing to develop quickly. On the morning of the 28th, a coalition of state attorneys and another that includes the National Council of Nonprofits and the American Public Health Association announced they are filing lawsuits to block the order. Then, in a press briefing that afternoon, White House Press Secretary Karoline Leavitt seemed to walk back the freeze as less broad than originally positioned, saying “this is not a blanket pause on federal assistance and grant programs from the Trump administration…So what does this pause mean? It means no more funding for illegal DEI programs. It means no more funding for the Green New Scam that has cost American taxpayers tens of billions of dollars. It means no more funding for transgenderism and woke-ness across our federal bureaucracies and agencies.” However, as of Tuesday afternoon, State agencies and early education centers were struggling to access federal funds from Medicaid and Head Start. Just before the order was set to go into effect on Tuesday evening, a federal judge temporarily blocked the order, delaying it from going into effect until at least next Monday, when a court hearing about the issue is scheduled.
Whether the freeze on federal funds happens or not (and how it will work if it does), it’s clear that chaos it is creating is already harming the nonprofit sector.
“This order is a potential five-alarm fire for nonprofit organizations and the people and communities they serve,” said National Council of Nonprofits President & CEO Diane Yentel in a statement this morning. “From pausing research on cures for childhood cancer to halting food assistance, safety from domestic violence, and closing suicide hotlines, the impact of even a short pause in funding could be devastating and cost lives. This order could decimate thousands of organizations and leave neighbors without the services they need.”
Like most nonprofits, yours is probably trying to wade through the confusion and conflicting information, and get some clarity about whether, when and how much this freeze on federal funds is going to impact your organization. We’re right there with you.
To help, we’re beginning to compile a list of resources and sources to follow closely as the situation continues to unfold. We’ll update this post frequently and add more information as it becomes available. If you have other helpful information to add to this post or want to share how the federal funding freeze is impacting your nonprofit, email us at hello@prosper-strategies.com.
In the meantime, contact your local representatives, explain how the federal funding freeze stands to impact your nonprofit and the people you serve, and demand it be rescinded. You can call the Capitol Hill switchboard at (202) 224-3121 and they will connect you directly with your House or Senate offices.
Resources and Information on the Federal Funding Freeze for Nonprofits
last updated 10:16 am CT on January 29, 2025.
- General news coverage on the federal funding freeze (live updates or regularly updated sources)
- Nonprofit coverage of and reactions to the federal funding freeze
- The NonProfit Times
- Nonprofit Quarterly
- Reddit mega thread on
- Resources from the National Council of Nonprofits
- Information on executive orders impacting nonprofits (has not yet been updated with budget freeze)
- Statement from National Council CEO Diane Yentel
- Nonprofit reactions and anecdotal reports
- Background information
- Original memo
- Press Secretary Karoline Leavitt’s January 28th press briefing (discussion of the order begins around minute 15)
