On Jan. 27, 2025, the Trump administration ordered a freeze on federal grants and contracts covering a wide array of aid programs to take effect at 5 p.m. the following day. This freeze was partially prevented when a judge responded to a lawsuit filed by the National Council of Nonprofits and other organizations. The flow of funds on grants that had already been awarded was at least temporarily protected by the judge’s action. The attorneys general of 22 states and the District of Columbia have also sued to block this funding freeze.
The Trump administration, which on Jan. 29 rescinded the memo ordering the funding suspension, has made clear that it may again seek to reduce or eliminate much of the money, totaling several hundred billion dollars, that funds many services that nonprofits provide, such as support for foster parents, after-school care and distributing food for free.
