Resources and Updates: Executive Orders and Federal Funding Freeze Impacting Nonprofits

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Since taking office, the Trump Administration has initiated significant policy changes at the federal level. A slew of executive orders impacting nonprofits directly and indirectly have been issued (though some may not take effect immediately or will be challenged in court). A memo from January 27th announced a pause on federal grants and assistance.

As new developments unfold and more information becomes available, Common Good Vermont will continue to update this page with resources and guidance. Read on for information on executive orders, the federal funding pause, and immigration actions.

TAKE ACTION: How are federal actions impacting your organization and the community you serve?

Please complete this form or email us at [email protected] to describe the impact on your organization including:

  • Who/what is impacted (organization, types of funding, from which agencies/sources, or clients)?
  • How great is the impact/how much funding is impacted?
  • How do you know you are impacted (i.e., did you affirmatively hear your funding is frozen, can you not access funding, or are you concerned about non-responsiveness or something else)?

Upcoming Events

Panel & Discussion: Federal Transition for Rural Communities

April 3, 2025 | 11:30 AM – 1:00 PM : Join VCRD to discuss the impacts of the recent federal transition. How will it affect our communities, local volunteer groups, nonprofits, businesses and municipal and regional services? We will hear from non-partisan statewide leaders to learn how they are adapting, including Melissa Bounty from CVEDC, Chris Cochran from DHCD, Martin Hahn from Common Good VT, and Bonnie Waninger from VLCT. Then we will open the discussion to the audience to hear your experience and build supportive connections with each other. Free registration here.

Executive Orders

Please refer to this website from the National Council of Nonprofits which will continue to be updated with new information and analysis. These resources will also continue to be updated:

Webinar Recording: Executive Actions and their Impact on Charitable Nonprofits (57:38), National Council of Nonprofits, Feb. 7, 2025. Recording and slides.

Webinar Recording: Doing Business in Uncertain Times, Office of the State Treasurer, Mar. 11, 2025. Recording.

Webinar Recording: The Legal Landscape and Path Ahead for Nonprofits and Philanthropy (1:02:23), National Council of Nonprofits, Mar. 17, 2025. Recording and slides.

Lawsuit Trackers:

Updates:

  • Judge Blocks DEI Orders: On Friday 2/21, a federal judge issued a preliminary injunction blocking two executive orders (EOs) (EO 14151, and EO 14173) attempting to terminate or change federal grants and contracts for programs related to diversity, equity, and inclusion. The judge ruled that the policies and term “diversity, equity, and inclusion” as used in the EOs were potentially vague, discriminating, and unconstitutional by penalizing private organizations, including charitable nonprofits. However, agencies are permitted to proceed with reviewing various programs related to these EOs and to issue any reports as required under the EOs. The ruling applies nationwide.

Federal Funding Pause

The Trump Administration announced a pause in federal grants and other assistance that was set to begin on January 28, 2025 at 5 pm. The memo reads “to the extent permissible under applicable law, federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.” This freeze in funding would greatly impact the nonprofit sector and our ability to provide the services that are so vital to the Vermont community, as we have already seen following the recent executive order halting the country’s refugee resettlement program. 

This action has been blocked for now through the courts – read on for updates and resources.

If your organization is unable to access its federal funding or needs support with a federal agency, contact the offices of Vermont’s congressional delegation to be connected with a caseworker:

More information/updates:

  • 3/13: Today, Woonasquatucket River Watershed Council, National Council of Nonprofits, Eastern Rhode Island Conservation District and Green Infrastructure Center filed a lawsuit challenging the Trump administration’s unlawful freeze on funding from the congressionally-approved Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA), known also as the Bipartisan Infrastructure Law—critical investments that help communities combat climate change, improve infrastructure, and protect public health. Read more.
  • 3/4: The National Council of Nonprofits filed a NEW motion and declaration in their case of National Council of Nonprofits v OMB. They are asking the judge to clarify that Continuum of Care (CoC) grants that have already been awarded are covered under the court’s Preliminary Injunction preventing the administration from implementing broad federal funding freezes.
    Background: In late January, HUD awarded $3.6B in CoC grants to 7,000 grantees providing the full continuum of outreach, shelter, services, housing to people experiencing homelessness. The funding hasn’t been disbursed and the delay is causing concern – soon, it may cause service disruptions or closures.
  • 2/25: In the case National Council of Nonprofits et al v Office of Management and Budget, represented in court by Democracy Forward, Judge Alikhan ruled today to grant their request for a preliminary injunction. The ruling states that OMB is prohibited from implementing, giving effect to, or reinstating under a different name the unilateral freeze of all new federal spending, attempted under OMB’s funding freeze directive. OMB must instruct all federal agencies of the preliminary injunction.
  • 2/5: Common Good Vermont presented a report on the Impacts of Federal Transition on Vermont’s Nonprofit Organizations to the Treasurer’s Taskforce on the Federal Transition. This report aggregated the stories of more than 50 Vermont nonprofits who generously responded to our requests for information. Thank you to all who took the time to share your experiences!
    You can read our memo to the taskforce here.
  • Update 2/3:
    • BREAKING: Judge Issues Temporary Restraining Order on OMB Freeze
      • The judge presiding over the lawsuit filed by Democracy Forward on behalf of the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE has granted another Temporary Restraining Order against the admin’s ability to halt federal grants and loans.
  • NPR 1/31: A 2nd U.S. judge says Trump administration must pause its federal spending freeze
    • A judge with the U.S. District Court for the District of Rhode Island has issued a temporary restraining order blocking the Trump administration’s efforts to freeze payments for grants and other programs.
    • The Friday ruling stems from a lawsuit filed earlier this week by Democratic attorneys general in 22 states and the District of Columbia. It is separate from a lawsuit filed by Democracy Forward and other non-profit groups that resulted in a separate federal judge’s decision to temporarily block the plan as originally detailed in a memo by the Office of Management and Budget. The White House later rescinded that OMB memo, but stated that its review of federal funding remained in effect.
  • Update 1/29 4 pm: After the memo was rescinded, the White House press secretary stated that the funding freeze was still in “full force and effect.” A federal judge is now considering blocking the funding freeze despite the memo that initiated the lawsuit being rescinded.
  • Update 1/29 1 pm: The funding freeze memo has been rescinded! While this is good news for now, it is likely not the end. Much is still unknown about what this means. Here is a statement issued by the National Council of Nonprofits. Please stay tuned for more updates and we encourage you to review the “Preparing for a Funding Pause” bullet below.
  • Response: Common Good’s partner the National Council of Nonprofits has already responded, filing a Motion for Temporary Restraining Order in the U.S. District Court for the District of Columbia to block the administration from pausing all federal agency grants and loans. The TRO was filed together with public health and small business leaders and represented in court by Democracy Forward. Learn more.
  • There is limited information about the outcome or duration of these freezes, however, we understand that the “re-evaluation” of government spending will be targeting initiatives focused on LGBTQ+ rights, environmental protection, DEI initiatives, foreign aid, and immigration and refugee support.  
  • As of 1/29 am: Sec. Samuelson of the Vermont Agency of Human Services sent out a message that stated, in part, “until we have more information regarding how the OMB directive will be effectuated, the Agency of Human Services will continue to operate as usual including making payments for personal services, contracts, goods, and subrecipient grants.” 
  • Press Coverage:
  • TAKE ACTION: Please consider sharing how recent executive orders and the funding freeze are impacting your organizations by filling out this form.

Preparing for a Funding Pause:

Resources for Immigration Actions

Here is a list of resources for immigration actions. Please be mindful that local organizations are experiencing high call volumes and have limited capacity – please refer to existing resources and information wherever possible. If you have additional resources, please share them by emailing [email protected].

  • WEBINAR RECORDING – Immigration & ICE: Rights, Obligations, & Support for Businesses: What do the new federal actions mean for your business or non-profit? Does your team know their rights and obligations should ICE come to your place of work? Join an expert panel of Vermont and national leaders to get your questions answered. This webinar is offered as a partnership of the Vermont Chamber of Commerce, Vermont Businesses for Social Responsibility, and the State Treasurer’s Office.
  • National Immigration Law Center: A Guide for Employers: What to Do if Immigration Comes to Your Workplace
  • New York Lawyers for the Public Interest and Lawyers Alliance for New York: Guidance to Nonprofits Regarding Immigration Enforcement
  • ACLU-VT
  • Migrant Justice
  • Language Justice Project: Know Your Rights
  • Representative Becca Balint: Know Your Rights: Resources for Immigrants in Vermont
  • Red Cards / Tarjetas Rojas:
    All people in the United States, regardless of immigration status, have certain rights and protections under the U.S. Constitution. The ILRC’s red cards give examples of how people can exercise these rights in real situations, such as when ICE agents go to a home. However, they do not provide individualized legal advice. Community members are encouraged to check in with a trusted legal service provider for questions about their situation. Print/order/learn more here.

Additional Resources