Federal Funding Freeze

Originally published January 28, 2025 at 3:30 pm

Information updated as of 3:20 pm on Wednesday, January 29, 2025

LATEST UPDATE: THE OFFICE OF MANAGEMENT AND BUDGET RESCINDED THIS WEEK’S MEMO ORDERING THE IMMEDIATE FREEZE OF FEDERAL GRANTS AND LOANS.

On Monday, January 27th, the acting director of the Office of Management and Budget sent a memo to all federal agencies ordering the immediate freeze of all federal grants, loans, and other financial assistance funds that are related to “foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal” or that contradict the Executive Orders signed by President Trump last week:

• Protecting the American People Against Invasion (Jan. 20, 2025)
• Reevaluating and Realigning United States Foreign Aid (Jan. 20, 2025),
• Putting America First in International Environmental Agreements (Jan. 20, 2025)
• Unleashing American Energy (Jan. 20, 2025)
• Ending Radical and Wasteful Government DEI Programs and Preferencing (Jan. 20, 2025)
• Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government (Jan. 20, 2025)
• Enforcing the Hyde Amendment (Jan. 24, 2025)

The memo states that Medicare and Social Security benefits are not included in the freeze. The freeze was intended to go into effect today, January 28th, at 5 p.m. On Tuesday afternoon, a federal judge temporarily blocked the freeze until February 3rd. As of Wednesday afternoon, the Office of Management and Budget rescinded the memo.

WHAT WE KNOW

This memo was released Monday afternoon, giving agencies less than 25 hours to comply. Updates on what this means for communities across Massachusetts are still forthcoming. We do know that state agencies, municipalities, universities, charitable nonprofits, and many other efforts across Massachusetts receive federal funding to support the residents of the Commonwealth.

The National Council of Nonprofits, the American Public Health Association, the Main Street Alliance, and SAGE filed a federal lawsuit against the Office of Management and Budget and Acting Director Vaeth, challenging the legal authority to pause the funds and requesting a temporary restraining order to the freeze.

Several states’ Attorneys General, including Massachusetts Attorney General Campbell, plan to file suit to block the directive as well.

Ranking members of the House and Senate Appropriations Committee released a statement this morning: “we write with extreme alarm about the Administration’s efforts to undermine Congress’s power of the purse, threaten our national security, and deny resources for states, localities, American families, and businesses.” (Read the full letter to Acting Director Vaeth).

WHAT YOU CAN DO

Over the last week, we have witnessed a frenzy of executive orders from the Trump Administration. This is a tried and true strategy to overwhelm advocates and constituents and exhaust us from taking action. At the moment, there is no specific action we recommend that advocates in Massachusetts take regarding this issue, but here are three things you can do right now:

1. Stay informed and Share Verified Information: MASSCreative will share actions and resources as available. We also recommend regularly checking the National Council on Nonprofits and Mass Nonprofit Network’s websites and social media for updates and broader coalition advocacy.
   • Attend the free webinar Executive Order on DEI: What Nonprofits and Philanthropies Need to Know hosted by Council on Foundations, Independent Sector, National Council of Nonprofits and the United Philanthropy Forum, on Friday January 31 at 1pm (EST) (register here)
   • The National Council of Nonprofits created a resource tracking the impact of all executive orders on charitable nonprofits, which they are regularly updating.
   • We stand in solidarity with larger national organizing efforts and we want to amplify cross-sector advocacy actions. If you have updated information from national advocacy resources or coalitions, please let us know by emailing us at info@mass-creative.org.
2. Share your thanks and your stories with your federal elected officials. The Massachusetts Congressional delegation consistently supports charitable nonprofits and directs federal funds to the Commonwealth. We have champions in the Capitol Building.
   • Write an email sharing your thanks for their and their staff’s efforts – here’s a link to look up your federal elected officials.
     • Share a story of federal funds’ positive impact on you, your organization, and your communities. These stories become talking points that our elected officials can use when making the case.
   • Please take our flash poll (below) for nonprofits and creative businesses to help us collect data and stories on the potential impact of this directive.
3. Practice community care and organize locally: The work of advocating for a creative, just, and equitable Massachusetts and the nation is long. We need each other, and we need you.
   • Consider joining local mutual aid efforts, holding conversations and meetings that center creativity and joy, starting discussions with your networks about how you can deepen support for each other, and taking time for rest.
   • We encourage learning more about Deepa Iyer’s work, including the Social Change Ecosystem Map that can help you consider ways to engage in organizing and community building.

TAKE THE FLASH POLL: IMPACT OF FUNDING FREEZE

While this memo was rescinded, we still need your help collecting stories and data to help our elected officials advocate for the sector under an administration that’s determined to cut federal funding. If your organization will be impacted by a funding freeze, please complete our flash poll to help us illustrate the danger of this federal action. Go here for the flash poll.

Please note: all data collected will be aggregated by congressional district and anonymized. Responses will not be attributed to specific organizations or businesses.