
Breaking: We stopped federal funding freeze
After the U.S. District Court of the District of Columbia’s stay on OMB’s freeze of federal grants-as was in response to a suit filed by Democracy Forward on behalf of the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE- the Office of Management and Budget rescinded its memo pausing all agency grants and loans.
On January 27, 2025, the Office of Management and Budget (OMB) issued a memo halting all federal financial assistance. Citing vague and politically charged reasons, the freeze was set to take effect just 24 hours later, on January 28, at 5 PM, and threatens a broad array of programs serving millions of Americans.
This reckless policy poses devastating risks to communities that rely on federal funding for critical services such as housing, public health, education, and support for small businesses.
Represented by Democracy Forward, The National Council of Nonprofits (NCN), American Public Health Association (APHA), and SAGE – Advocacy & Services for LGBTQ Elders sued to challenge this unlawful policy.
A freeze on federal funding would halt essential programs, including:
- Housing and food assistance for families in need.
- Public health initiatives that save lives, such as research and prevention programs.
- Small business support that fuels local economies and creates jobs.
- Care for vulnerable elders, particularly LGBTQ+ seniors who already face unique challenges
The lawsuit seeks to block the effects of the memo and ensure that federal funds remain available to support essential programs and protect people’s lives and well-being.
The court heard our argument on behalf of nonprofits, public health groups, small businesses, and seniors and paused the freeze.
The fight isn’t over. We are committed to defending the law and protecting communities and people from harm. The next hearing is on February 3rd.