NEW YORK — A coalition of nonprofit organizations has come together to challenge a significant order issued by the Trump administration last week, which aimed to pause trillions of dollars in federal funding. Their initial efforts have been successful in temporarily blocking the order.
This development marks the beginning of what many nonprofit leaders anticipate will be a surge in legal action against the administration’s policies. Civil litigation is expected to become a critical avenue for these groups to oppose President Donald Trump’s directives. “Expect an avalanche of lawsuits to counter unlawful practices,” stated Skye Perryman, President and CEO of Democracy Forward, which spearheaded the coalition’s lawsuit against the funding freeze. A judge has agreed to advance this lawsuit, one of numerous cases filed within the early days of the new administration, and has also extended a temporary restraining order.
Currently, there are more than a dozen federal lawsuits challenging the Trump administration, launched by a diverse array of organizations, including various Quaker groups, the consumer advocacy organization Public Citizen, and the New Hampshire Indonesian Community Support. Initially, discussions centered around policy changes from the new administration; however, few anticipated a complete suspension of foreign aid or a widespread halt in federal funding. The funding freeze has been perceived by the nonprofit sector as a serious threat to their existence. In response, organizations have varied in their approaches, ranging from caution to rallying their communities and urging supporters to contact their congressional representatives.
Diane Yentel, the President and CEO of the National Council of Nonprofits, quickly reacted to the situation. She had already been assessing the impact of President Trump’s earlier executive orders on nonprofits when she noticed the memo late on the evening of January 27. The directive from the Office of Management and Budget mandated a “temporary pause” on all federal financial assistance activities. Yentel characterized the memo as “a potential 5-alarm fire for nonprofits and the communities they serve” and emphasized that they would not allow it to happen without a fight.
Within hours, the National Council of Nonprofits, Democracy Forward, and several other organizations collaborated to devise a legal strategy. “We worked throughout the night to prepare and were ready by 9 a.m. for attorneys to inform the judge that we would be challenging this order and seeking an emergency hearing,” Yentel reiterated in an interview.
Philanthropic consultant Tom Watson expressed his approval of the collective efforts spearheaded by the National Council of Nonprofits along with other organizations like the American Public Health Association, Main Street Alliance, and SAGE, which advocates for LGBTQ+ adults. “I don’t believe this is just a short storm to weather and return to normalcy; it’s more akin to a massive tidal wave,” Watson remarked, indicating the potential long-lasting impact on the entire nonprofit sector.
While nonprofits can draw lessons from the first Trump administration and the upheaval caused by the COVID-19 pandemic, many view this funding freeze as without precedent. Ann Oliva, CEO of the National Alliance to End Homelessness, pointed out that access to funding platforms was restricted even before the deadline set by the administration, which heightened confusion and concern among organizations. Her group encouraged individuals to inform their congressional representatives about the potential impacts of the funding pause. Last week, around 10,000 individuals used their electronic forms to contact lawmakers.
Grace Bonilla, President of United Way of New York City, highlighted that organizations relying on state and local funding for food pantries are already facing challenges due to the uncertainty surrounding funding freezes and other policies such as heightened immigration enforcement. “This is already week three,” she noted, discussing her ongoing conversations with nonprofit leaders, funders, and corporate entities about their responses. Currently, many are in a holding pattern, awaiting further developments.
“People are acutely aware of how this will affect not only budgets but also the number of individuals who may be harmed if these policies are enacted,” Bonilla acknowledged. She added that it’s challenging for nonprofit leaders and others in the private sector to stake a definitive position, as they remain uncertain about future developments. “Our elected officials need to demonstrate more courage,” she concluded.
