WE DID IT! The nonprofit sector has come together around the country to fight against the federal grant pause. The Trump Administration has officially rescinded the federal funding freeze for nonprofits. The rescission of the order renders all prior actions, including the initial order, the freeze on funding, and the subsequent stay, null and void. This represents a significant, albeit potentially temporary, victory for our cause. It is highly probable that there will be an attempt to achieve a similar outcome through a revised and more meticulously drafted order.
Following the Office of Management and Budget’s (OMB) decision to retract its memo that had halted all agency grants and loans, Kevin Dean, President & CEO of the Tennessee Nonprofit Network, issued the following statement:
“We are relieved to learn that the OMB has reversed its order to freeze federal funding. This decision, which comes in response to legal action taken by organizations across the country, will prevent significant disruption to vital services provided by nonprofits in Tennessee and across the nation.
While we welcome this reversal, we are deeply concerned by the instability and uncertainty created by the initial freeze. Nonprofits play an essential role in our communities, and any disruption to their funding can have serious consequences for the people they serve. We urge the administration to prioritize consistent and reliable support for the nonprofit sector.”
This statement comes after the U.S. District Court for the District of Columbia issued a stay on the OMB’s freeze, in response to a lawsuit filed by Democracy Forward on behalf of several national nonprofit organizations, including the National Council of Nonprofits.
The rescinded OMB memo can be found here.
More information on the impact of the federal pause can be found here.