Updates on Federal Actions
Affecting Nonprofits
Latest Developments
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March 13: National Council of Nonprofits files a lawsuit challenging the federal administration’s unlawful freeze on funding from the congressionally-approved Inflation Reduction Act and the Infrastructure Investment and Jobs Act.
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March 6: Judge McConnell issued a preliminary injunction ordering the Trump administration to reinstate funding for essential government services for a range of programs including, but not limited to, public safety, environmental safety, child welfare, energy development, healthcare, and emergency management services. "Attorney General Raúl Torrez and Multistate Coalition Secure Court Order Blocking Trump Administration from Freezing Federal Funds"
Latest Developments
Nonprofit Actions
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"12 Urgent Financial Action Steps for Nonprofits: A 2025 Checklist"by Steve Zimmerman and Ruth McCambridge, Nonprofit Financial Commons
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"Resiliency Strategies for Nonprofits in Times of Political & Financial Instability" by Sarah Young, Elizabeth Searing, and Kimberley Wiley, Nonprofit Quarterly, March 11, 2025
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"How to Simplify and Streamline During a Crisis" by Melanie Lockwood Herman, Nonprofit Risk Management Center
What Nonprofits Can Do
Share Impacts to Your Work
Share your experiences with the recent funding uncertainties. It will strengthen the case led by the National Council of Nonprofits. And it provides necessary information for our U.S. Representatives and Senators as they work to protect our communities.
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Be prepared to enter your information multiple times, on different forms or via email:
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Name and location of your organization
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Sector of the community your organization serves, e.g., children, seniors, people experiencing food insecurity
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Number of people employed by your organization
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Number of community members served
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Percentage of your budget derived from federal funds, either directly or as pass through funding from state or local governments
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How the federal funding freeze affected or would affect your organization and the community members served by it.
Where to share:
Share
Information
Inspiration
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You are not alone in this work. Others stand beside you, inspired by your dedication. And even in the hardest moments, remember: your work matters, you matter, and hope is never lost. Keep going. The world is brighter because of you. 💙
Pamela Accetta Smith, Sky Valley Comm -
Gratitude is the capacity to stare doubt, loss, chaos and despair right in the eye and say, 'I am still here.' Diana Butler Bass
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You wake up every day and show up with passion, courage, and heart—doing the hard, beautiful work that makes our world kinder, fairer, and more loving. Your advocacy matters. Your efforts count. Keep going, keep believing, and keep making those moves that spark change, spread joy, and nurture love in our beloved communities. We're cheering you on every step of the way!
Building Beloved Communities​
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Inspiration
Resources
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"Government Funding Cuts Put Nonprofits at Risk Across Nation" by Laura Tomasko, February 21, 2025 Urban Institute
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"How reliant are nonprofits on government grants?" by Cathleen Clerkin, Anna Koob, and David Wolcheck, February 6, 2025, Candid
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"Ask Rhea!" Nonprofit Quarterly's fundraising advice column
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Federal Grants Update: Recommendations Amid Ongoing Uncertainty, February 17, 2025 YPTC
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"Turn on Your Headlights: How Funders Can Cut Through the Chaos Right Now" by Britt Lake and Melinda Tuan, February 13, 2025, The Center for Effective Philanthropy​
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Additional Information
March 13: National Council of Nonprofits files a lawsuit challenging the federal administration’s unlawful freeze on funding from the congressionally-approved Inflation Reduction Act and the Infrastructure Investment and Jobs Act.
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March 6: Judge McConnell issued a preliminary injunction ordering the Trump administration to reinstate funding for essential government services for a range of programs including, but not limited to, public safety, environmental safety, child welfare, energy development, healthcare, and emergency management services. "Attorney General Raúl Torrez and Multistate Coalition Secure Court Order Blocking Trump Administration from Freezing Federal Funds"
March 4: The National Council of Nonprofits filed a motion requesting clarification from the court on what is deemed an “open” grant or contract. OMB has interpreted "open awards" to mean open awards that have been partially disbursed. The court has set a quick filing schedule which could lead to clarification sometime next week.
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February 25: Judge Alikhan granted a Preliminary Injunction. The ruling states that OMB is prohibited from implementing, giving effect to, or reinstating under a different name the unilateral freeze of all new federal spending, attempted under OMB's funding freeze directive. OMB must instruct all federal agencies of the preliminary injunction. "Judge Issues National Injunction to Block Trump Administration's Devastating Attempt to Halt Funding For Essential Services"
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February 20: hearing in U.S. District Court on the coalitions motion for a Preliminary Injunction.
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February 12: ​Federal administration files opposition to motion for Preliminary Injunction.
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February 11: the National Council and coalition represented by Democracy Forward file for Preliminary Injunction to keep the administration from implementing a blanket federal funding freeze.
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February 3: the National Council and coalition represented by Democracy Forward were back in court. Judge Alikhan issued another Temporary Restraining Order, concluding in the Memorandum of Opinion and Order:
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"that Defendants [Office of Management and Budget] are enjoined from implementing, giving effect to, or reinstating under a different name the directives in OMB Memorandum M-25-13 with respect to the disbursement of Federal funds under all open awards;" and
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"that the parties shall meet and confer and file a joint status report proposing a preliminary injunction briefing schedule on or before February 7, 2025."
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January 31: Chief Judge John McConnell, Jr., U.S. District Court for the District of Rhode Island issued a Temporary Restraining Order. The restraining order is to remain in place until "further Order of this Court." Judge McConnell, Jr. stated in the court order: "Defendants shall also be restrained and prohibited from reissuing, adopting, implementing, or otherwise giving effect to the OMB Directive under any other name or title or through any other Defendants (or agency supervised, administered, or controlled by any Defendant), such as the continued implementation identified by the White House Press Secretary's statement of January 29, 2025."
January 29: 22 state Attorneys General, including NM Attorney General Raul Torrez filed for a Temporary Restraining Order of the federal funding pause.
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January 29: White House Press Secretary Karoline Leavitt posted on social media: "This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo."
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January 29: Acting Director Vaeth released another OMB Memo M-25-14 rescinding the previous OMB Memo M-25-13.
January 28: U.S. District Judge Alikhan blocked the action until Monday, February 3 at 5:00 pm.
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January 28: the National Council of Nonprofits in Coalition with the American Public Health Association, Main Street Alliance, and SAGE represented by Democracy Forward filed a Motion for a Temporary Restraining Order in the U.S. District Court for the District of Columbia.
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January 27: Acting Director Vaeth released OMB Memo M-25-13 ordering a Temporary Pause of Agency, Grant, Loan, and Other Financial Assistance Programs. The pause was due to go into effect on January 28 at 5:00 pm. However, many payment portals were turned off on January 27 or early on January 28.