Grants in the News: What’s Up with the Freeze on Federal Grant Programs?
Whew, this has been a week!
If you’re in the nonprofit community, you’ve most likely been keeping an eye on the news over the past couple of weeks. From executive orders to the freeze on federal grant programs, it’s been a veritable rollercoaster out here for nonprofits and those that serve them.
So let’s talk about what’s been going on in the news and how nonprofits can strategically protect themselves moving forward…
What’s Been Going On with Federal Grant Programs?
The last couple of weeks have left all of us with a good ol’ case of whiplash.
Let’s look back at what has happened and how it has affected the grant world.
On January 20th, when Trump first came into office, he signed 36 executive orders. Several of these executive orders directly impacted federal grant programs related to DEI, gender ideology, and environmental justice.
The White House announced on January 27th that federal grant and loan payments would be frozen starting the next day. This freeze would halt funding to any organization expecting federal grants while the administration reviewed programs for compliance with the executive orders issued on January 20th. Programs deemed non-compliant would be defunded.
This threat of a funding freeze left numerous organizations, heavily reliant on federal grants, racing the clock to figure out how they would cover the costs of essential staff and programs moving forward.
This is where things started to happen quickly.
In response to this freeze, 22 states proceeded to sue the Trump administration, claiming that this freeze was unconstitutional. In addition, a U.S. District judge blocked the freeze until February 3rd, when a court hearing could be held to consider the issue.
But on the following day, January 29th, the White House released a statement rescinding their freeze.
Uncertainty surrounding these funding changes has created significant anxiety among all of us in the nonprofit community. With the future still uncertain, organizations are hard at work to secure alternative funding sources and maintain essential services.
While for the moment, we seem to be out of the woods and our programs safe, we also want to prepare ourselves for whatever could be on the horizon.
Let’s look at a few things that we can all do to be ready for future ups and downs.
How to Navigate The Chaos
Stay in the Loop: Check agency websites, sign up for newsletters, follow them on social media – basically, become a grant funding stalker (the friendly kind).
Supercharge Your Proposals: Make sure your proposals are top-notch. Clearly explain why your project matters, how it fits with what the agency wants, and what good it will do. Don't miss any deadlines or requirements!
Network, Network, Network: Talk to people at the agencies. Building relationships can give you valuable insights.
Don't Put All Your Eggs in One Basket: Look beyond federal grants. State, local, and private funding can be lifesavers.
Team Up: Working with other organizations can make you stronger and give you access to more resources.
Take a Deep Breath: Grant stuff takes time. Be patient, stay on top of things, and don't give up.
Focusing on The Big Picture
In the nonprofit world, we are not strangers to changes in the grant landscape. It’s always changing.
But you’re not helpless — staying informed, being proactive, and building connections are your best tools.
Even though things can get a little crazy, it's also a chance to get creative and work together. By rolling with the punches and focusing on doing great work, you can keep a level head and keep your organization moving forward, even in uncertain times.
Feature Image by Filip Mishevski
