Tax-funded NGOs rally against White House grant-making overhaul

Several nonprofit groups that obtain federal grants and were involved in lawsuits against the Trump administration have joined a coalition letter denouncing the White House’s draft reforms to federal grantmaking. The Office of Management and Budget’s May proposal would amend Uniform Guidance, permitting agencies to suspend or terminate grants that fail to meet agency priorities or the national interest, with examples including DEI initiatives and “anti-American ideologies.”

Signatories such as the American Public Health Association, SAGE, the National Council of Nonprofits, the Northwest Immigrant Rights Project, the AIDS Vaccine Advocacy Coalition and Integrated Refugee and Immigrant Service argue the rule would disrupt vital services and introduce vague, politically-driven standards. Independent Sector’s Akilah Watkins warned the changes could corrupt a traditionally nonpartisan process, while Rep. Michael Cloud praised the rule as a return to accountability. Legal challenges have already arisen, with courts blocking some grant cancellations and deeming related memoranda moot after rescission.