Protecting Nonprofits Amid a Federal Funding Freeze

A call to action from our CEO, Linda Jacobs:

 

The Trump administration’s recent pause on federal financial assistance has sent shockwaves through the nonprofit community. While the White House has since attempted to clarify that some critical aid programs like Medicaid, SNAP, federal student loans, Pell Grants, and Section 8 rental assistance are exempt, the freeze still poses significant concerns and caused widespread confusion. Nonprofits that rely on grants or loans tied to immigration, foreign aid, reproductive health, clean energy, diversity, equity and inclusion (DEI), gender-related programs, and more remain at risk.

 

This targeted freeze, framed as a review to align funding with administration priorities, threatens the essential services that nonprofits provide to vulnerable communities. For organizations addressing issues like housing, food security, childcare, and climate resilience, the uncertainty caused by these funding disruptions jeopardizes their ability to operate effectively and serve those who rely on their support.

 

Delays or cancellations of federal funds could mean lost jobs, reduced services, and diminished support for populations at risk. Nonprofits cannot wait for legal challenges to resolve the constitutionality of the funding freeze. Immediate action is needed to ensure that these essential programs and services remain available.

 

We, along with other nonprofit leaders, are calling on elected officials to advocate for the release of federal funds and to champion legislation that protects nonprofit funding from arbitrary freezes. Additionally, while they can, we urge funders, including foundations and corporations, to step up with emergency support.

 

Individuals, too, have an important role to play. Donations to local nonprofits – whether large or small – are critical to sustaining vital programs. Community support is more important than ever as nonprofits navigate the complex challenges posed by the funding freeze and whatever comes next.

 

At Center for Volunteer & Nonprofit Leadership (CVNL), we see firsthand how interconnected and vital these efforts are. When federal funding is disrupted, the ripple effects are immediate and severe. In response, CVNL will be having conversations with elected officials and nonprofit leaders in the coming days and weeks.

 

This is a critical moment for our nation. We urge our community to stand with nonprofits. Advocate for the release of federal funds by contacting your elected representatives. Support local organizations through donations, volunteerism, and amplifying their voices. Together, we can ensure that nonprofits remain a beacon of hope, resilience, and support for all. Check back with us for updates on the situation and ways to get involved.

 

Resources

For a comprehensive and up-to-date report on how the Executive Orders affect nonprofits, visit: https://www.councilofnonprofits.org/files/media/documents/2025/chart-executive-orders.pdf.
Call Congress and urge them to stop this freeze: