The nonprofit sector is the target of a new executive order from the Trump Administration which today ordered federal agency department heads to “review all funding that agencies provide to NGOs.”
It was not clear whether the phrasing of non-governmental organizations meant international funding or all funding.
The executive order comes on the heels of three temporary restraining orders in two federal court districts mandating that the directive halting federal funding for programs that were passed by Congress and signed into law, should be reversed.
“The United States Government has provided significant taxpayer dollars to Nongovernmental Organizations (NGOs), many of which are engaged in actions that actively undermine the security, prosperity, and safety of the American people. It is the policy of my Administration to stop funding NGOs that undermine the national interest,” the order read.
“I therefore direct the heads of executive departments and agencies (agencies) to review all funding that agencies provide to NGOs. The heads of agencies shall align future funding decisions with the interests of the United States and with the goals and priorities of my Administration, as expressed in executive actions; as otherwise determined in the judgment of the heads of agencies; and on the basis of applicable authorizing statutes, regulations, and terms.”
Reaction from the nonprofit sector was swift. “Today’s administrative order is the latest in a troubling series of attacks on nonprofit organizations working, in the United States and around the world, to provide food, shelter, and housing, eradicate disease, combat human trafficking, provide healthcare and early education, and much more,” said National Council of Nonprofits President and CEO Diane Yentel via a statement.
The National Council of Nonprofits is an association of state associations of nonprofits. “Let’s be clear: the security, prosperity, and safety of the American people that the Memorandum expresses concern about are enhanced by the work of nonprofits and NGOs. Removing this vital funding or dismantling these organizations will not just diminish the United States here at home and around the world, it will cost lives. The work that nonprofit organizations do day in and day out to meet their lofty missions touch all of our lives, in each of our communities, and are truly what makes America great in the eyes of the world and at home,” Yentel said via the statement.
“The Nonprofit Alliance strongly opposes the executive action announced today, which casts a baseless and harmful shadow over the work of nongovernmental organizations (NGOs) at home and abroad,” said Shannon McCracken, chief executive officer of The Nonprofit Alliance. “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,” she said.
“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, according to McCracken.
“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,” she said.
Democracy Forward won two of the temporary restraining orders while representing the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE. The third filing was in Rhode Islands by the attorneys general of 22 states and the District of Columbia.
Federal Judge Loren AliKhan, sitting in United States District Court for the District of Columbia, enjoined the Trump administration 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.” That is the memo directing the funding freeze.
She further ordered that the government provide written notice of the court’s temporary restraining order to “all agencies to which OMB Memorandum M-25-13 was addressed. The written notice shall instruct those agencies that they may not take any steps to implement, give effect to, or reinstate under a different name the directives in OMB Memorandum M-25-13 with respect to the disbursement of Federal Funds under all open awards. It shall also instruct those agencies to release any disbursements on open awards that were paused due to OMB Memorandum M-25-13.”
