Giving Compass' Take:
- Danielle McLean reports on how nonprofits are struggling as funding for homelessness and domestic violence services remains frozen.
- How can donors and funders do their part to fill the gaps left by the federal funding freeze, supporting domestic violence survivors and people experiencing homelessness?
- Learn more about best practices in giving.
- Search our Guide to Good for nonprofits in your area.
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The Trump administration, in a memo from the Office of Management and Budget on Jan. 27, indicated that it would freeze all federal funding distributed through grants, loans and financial assistance programs — totalling up to $3 trillion. Democracy Forward, a nonprofit legal advocacy group, filed a lawsuit on behalf of several nonprofit advocacy organizations asking a federal court to block OMB from pausing the release of the funds as nonprofits struggle amidst the funding freeze. A federal judge quickly issued an administrative stay that temporarily blocked the funding freeze. A group of 23 attorneys general also filed a separate lawsuit seeking a temporary restraining order on the funding freeze.
OMB rescinded the funding freeze memo, but nonprofits struggle and have sought further redress from the courts where they allege funds remain frozen contrary to court directives.
As it stands, the organizations that filed the lawsuit are waiting for clarification about what is and is not included in the preliminary injunction, said Rick Cohen, COO and chief communications officer at the National Council of Nonprofits.
That includes funding from the U.S. Department of Housing and Human Development under its CoC program, covering housing, domestic violence and homelessness services, said Cohen.
According to the March 4 court filing, HUD announced $3.6 billion in CoC grant awards on Jan. 17. The awards included $189 million in funding for a youth homelessness demonstration program and $62 million in housing and services for people fleeing domestic violence, stalking and sexual assault.
That funding was awarded before the funding freeze, but disbursement of that money had not yet begun, the organizations stated, and these nonprofits are struggling for this reason. After the court blocked the funding freeze, the Trump administration resumed distributing funds from awards that had been partially distributed, but it did not distribute funds for all open awards, which the organizations believe should be included in accordance with the injunction, the court filings stated.
“We’re seeing some things that are still being held up that we interpret from the judge’s instruction that it should not be held up,” Cohen said. “We are working to clarify the scope of that injunction to ensure that everything is happening the way that it should.”
Read the full article about the social services funding freeze by Danielle McLean at Smart Cities Dive.