Federal Actions Impacting Nonprofits: Resources & Updates

Since taking office, the Trump Administration has initiated significant policy changes at the federal level. A slew of executive orders and actions impacting nonprofits directly and indirectly have been issued (though some may not take effect immediately or are being challenged in court).

These actions have generated a great deal of uncertainty for nonprofits around funding, staffing, and their ability to carry out their missions. Many organizations are already feeling the impact on their organizations and the communities they serve. Organizations, particularly those with federal grants or contracts and those working on specific issues or in a sub-sector targeted by executive orders, are encouraged to engage with Common Good Vermont and collaborative efforts to mitigate risk.

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, immigration actions, and more.

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Report Impacts & Tell Your Story

How are federal actions impacting your organization and the community you serve? Let us know:

COMPLETE THIS FORM

Alternatively, you can share your story by emailing [email protected].

Report Federal Funds to the Vermont Legislature

The Vermont Legislature is working to fully understand the impact–and potential impact–of federal funding cuts and cancelled grant contracts on the non-governmental agencies and associations that are providing important services and programs for people throughout our state.
 
Representative Jubilee McGill has been asked to take the lead on compiling information on non-governmental agencies and associations that receive DIRECT grants or other kinds of funding from the federal government–funding that is not passed through a state agency, and therefore is not already included in their documentation.

Please download the Excel file below, fill it out, and return it to [email protected] (and cc or bcc [email protected]).

Download Form

Additional Action: Reach out to the offices of Vermont’s congressional delegation (Representative Balint, Senator Welch, and Senator Sanders) to inform them of the impact of federal actions on your organization and their constituents (impact on jobs, economy, etc.).

General Information & Background

Please refer to this website from the National Council of Nonprofits (NCN) which will continue to be updated with new information and analysis.

Lawsuit Trackers:

Updates / Timeline of Actions

  • 4/15: NCN Statement in response to DOGE attempt to assign a team to the nonprofit Vera Institute
  • 4/15: A judge granted the National Council of Nonprofit’s motion for a nationwide preliminary injunction preventing the Trump administration from freezing, halting, or broadly pausing payments for funding awarded under the Inflation Reduction Act or the Infrastructure Investment and Jobs Act! This is the second (of only about a dozen) nationwide preliminary injunctions in place due to lawsuits brought by NCN and partners. Read the ruling here.
    A reminder of the case – the Trump administration froze funding appropriated by Congress to, for example, reduce lead in water fountains in schools and daycares, weatherize homes and lower utility bills of low-income Americans, maintain green spaces in disadvantaged communities, and reduce the risk of wildfires through land management. NCN sued (their second lawsuit against the admin), together with NCN members Woonasquatucket River Watershed Council, Eastern Rhode Island Conservation District, Green Infrastructure Center, and Codman Square Neighborhood Redevelopment Corporation. They were represented in court by an incredible team from Democracy Forward.
  • 4/7: The American Library Association and 21 state attorneys general filed separate lawsuits this week seeking to stop the elimination of the Institute of Museum and Library Services. The IMLS and other agencies under the executive order provide funding, research, and assistance for libraries and communities across the country. The plaintiffs argue the dismantling of the agencies is unconstitutional and violates the Administrative Procedures Act.
  • 4/4: Common Good Vermont interviewed two nonprofit leaders, Rhoni Basden of Vermont Works for Women, and Shabnam Nolan of King Street Center, about federal actions impacting their organizations and the communities they serve. Watch it here.
  • 4/3: There was a hearing in the U.S. District Court of Rhode Island in NCN’s second lawsuit, Woonasquatucket River Watershed Council, NCN, et al vs. USDA et al. A ruling is expected in the next 2 weeks, and we’ll share updates when have more information from the court.
  • 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.
  • 2/21: 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.
  • 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.” 

Events

Upcoming Events

Nonprofits & Philanthropy: Responding to Federal Actions

May 5, 2025 | 1 – 2:30 PM: Common Good Vermont invites leaders from our state’s nonprofit and philanthropic communities to an important conversation about the recent federal actions disrupting federal funding and impacting on our sector and the people we serve. The call will be an opportunity for nonprofits and funders to come together, discuss the challenges, and explore ways to collaborate as we move forward. Learn more & register (free event).

Past Events

Panel & Discussion: Federal Transition for Rural Communities, Vermont Council on Rural Development, Apr. 3, 2025. Recording.

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

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

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

Immigration & ICE: Rights, Obligations, & Support for Businesses, Office of the State Treasurer, Feb. 6, 2025. Recording.

Resources & Information

Federal Funding

Despite federal funding freezes being blocked by the courts, certain funding streams continue to be impacted. Updates and more information can be found under Updates/Timeline of Actions.

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:

Resources & Action Steps:

Immigration Actions

  • 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