The National Council of Nonprofits has released a statement regarding the Trump administration rescinding its memorandum ordering a pause on federal financial assistance programs.
On Monday, January 27, President Trump issued an internal memo requiring federal agencies to pause and review their financial assistance programs to ensure their alignment with the President’s policies. Published by The New York Times, the memo specifically mentions several of the President’s recent executive orders.
The pause was meant to begin on Tuesday, January 28 at 5 p.m. with agencies required to submit their reviews no later than Monday, February 10. However, following a lawsuit brought by The National Council of Nonprofits, the American Public Health Association, Mainstreet Alliance, and SAGE, U.S. District Judge Loren AliKhan temporarily blocked the order. The Judge put into place a “brief administrative stay” which would expire on Monday, February 3, at 5 p.m.
Yesterday, Wednesday, January 29, the Office of Management and Budget issued a new memo stating that the previous memo had been rescinded. Karoline Leavitt, the White House Press Secretary has stated via the social media platform X, that the newest memo is “NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo. Why? To end any confusion created by the court’s injunction. The President’s EO’s [sic] on federal funding remain in full force and effect, and will be rigorously implemented.”
In a statement to CNBC, Ms. Leavitt explained further, stating, “This action should effectively end the court case and allow the government to focus on enforcing the President’s orders on controlling federal spending. In the coming weeks and months, more executive action will continue to end the egregious waste of federal funding.”
The National Council of Nonprofits released the following statement via its website:
“We are glad that this memo has been rescinded. The chaos unleashed by the uncertainty and lack of adequate notice yesterday should never have happened. Nonprofits are vital partners for government, and payment for the services they provide should never have been in question.
Nonprofit organizations throughout the country and the people they serve can breathe a sigh of relief now that the White House has, at least for now, backed off its reckless and harmful plan to halt all federal funding for critical programs from homelessness and housing assistance, to disaster relief and rebuilding, to rape crisis centers and suicide hotlines.
Right now, we will celebrate this victory for nonprofits and the people they serve across the country. But we will remain vigilant for any further actions that harm nonprofits’ ability to serve their communities.”
