Tag: Nonprofits

A handful of non-profit organizations and health associations, including an LGBTQ+ advocacy group, filed a lawsuit Tuesday over the Trump administration’s directive to freeze federal aid. 

The lawsuit, filed Tuesday afternoon in Washington, D.C., federal court, was launched by the National Council of Nonprofits, the American Public Health Association, the Main Street Alliance, and SAGE against the Office of Management and Budget (OMB) and acting director of OMB, Matthew Vaeth.

The parties are asking the court to impose a temporary restraining order “to maintain the status quo until the Court has an opportunity to more fully consider the illegality of OMB’s actions.”

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The suit was filed after the Trump administration went on a memo blitz Monday, sending at least three letters to federal agency leaders on directives covering topics including return to office instructions and pausing federal grants. Fox News Digital obtained copies of the memos.

One specific memo issued by OMB pauses all federal grants and loans in an effort to end “‘wokeness’ and the weaponization of government,” and to promote “efficiency in government.”

“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,” the memo reads. 

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The pause takes effect at 5 p.m. ET on Tuesday. 

The lawsuit argues that the parties will suffer harm as a result of the federal aid freeze given their reliance on federal funding. 

SAGE’s CEO, Michael Adams — whose organization describes itself as “dedicated to improving the lives of lesbian, gay, bisexual, and transgender adults,” per the court filing — told Fox News Digital in a statement that the freeze “would devastate the lives of older Americans — including LGBTQ+ elders who already face unique challenges.”

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“This reckless decision puts entire communities at risk. We must work together now to protect our older neighbors, friends, and loved ones before it’s too late,” Adams said.

Small Business Majority Founder & CEO John Arensmeyer said the federal grant freeze “will have a devastating impact on small businesses nationwide” and called the move a “Draconian shuttering of the federal purse.”

Diane Yentel, President & CEO of the National Council of Nonprofits called the directive a “reckless action” by the Trump administration that would prove to be “catastrophic for nonprofit organizations and the people and communities they serve.” 

“From pausing research on cures for childhood cancer to halting housing and food assistance, shuttering domestic violence and homeless shelters, and closing suicide hotlines, the impact of even a short pause in funding could be devastating and cost lives,” Yentel said in a statement provided to Fox News Digital. “This order must be halted immediately before such avoidable harm is done.”

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Fox News Digital reached out to the White House for comment. 

The memo explained that out of the $10 trillion spent by the federal government in fiscal year 2024, $3 trillion of that total was allocated to “federal financial assistance, such as grants and loans.”

Vaeth sent the memo to all heads of executive departments and agencies. 

Trump also signed two executive orders Monday taking aim at Diversity, Equity and Inclusion (DEI) initiatives in the federal government. 

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The orders, titled “Prioritizing Military Excellence and Readiness” and “Restoring America’s Fighting Force,” should be in the process of being implemented by Defense Secretary Pete Hegseth and the secretary of Homeland Security within 30 days.

Fox News Digital’s Emma Colton and Elizabeth Pritchett contributed to this report.