US court halts Trump’s funding freeze leaving nonprofits in limbo amid backlash

Nutrition and food nonprofits are in disarray after US President Donald Trump ordered a temporary freeze on federal grants and assistance through an Office of Management and Budget (OMB) memo. 

Before the freeze took effect, the US District Court intervened and temporarily halted the funding freeze. This legal action has raised concerns about potential impacts on programs like the Supplemental Nutrition Assistance Program (SNAP), the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), and other programs that rely on federal funding. 

In a reversal, the White House has rescinded the memo but according to their spokesperson, Trump’s executive orders remain in “full force and effect and will be rigorously implemented.”

The sequence of events has caused confusion. The administration clarified its stance: “The pause does not apply across the board. It is expressly limited to programs, projects, and activities implicated by the President’s Executive Orders, such as ending diversity, equity, and inclusion (DEI), the Green New Deal, and funding NGOs that undermine the national interest.”

 “Any program that provides direct benefits to Americans is explicitly excluded from the pause and exempted from this review process. In addition to Social Security and Medicare, already explicitly excluded in the guidance, mandatory programs like Medicaid and SNAP will continue without pause.”

The temporary pause aimed to determine whether these 2,600 programs aligned with Trump’s policies. Some elected Republicans had expressed support for this goal.

Air of uncertainty 

On January 27, Trump outlined rules potentially impacting the allocation of financial aid, affecting foreign aid, DEI initiatives, abortion-related funding under the Hyde Amendment, and environmental projects. 

The court has issued a pause at least until February 3.The OMB instructed government agencies to stop sending funding. However, several nonprofits relying on government funding filed lawsuits. In response, the court issued a pause at least until February 3, giving it time to review the case concerning the funding freeze.

Yet, organizations are concerned about potential effects, with the National Council of Nonprofits saying: “This order is a potential five-alarm fire for nonprofit organizations and the people and communities they serve. From pausing research on cures for childhood cancer to halting food assistance, safety from domestic violence, and closing suicide hotlines, the impact of even a short pause in funding could be devastating and cost lives. This order could decimate thousands of organizations and leave neighbors without the services they need.”

Senate Democratic Leader Chuck Schumer reacted to Trump’s “extremely dangerous and lawless halt… to fund tax cuts for the ultra-wealthy,” adding that “American families are going to suffer most.”

Delaware Governor Matt Meyer supports this sentiment: “We know that Trump’s goal is to take tax dollars from working people so that he can eventually cut taxes for billionaires.” According to media reports, Representative Don Bacon has also expressed concerns.

Nutrition programs for seniors

The day after the order, Meals on Wheels America’s CEO, Ellie Hollander, expressed: “Meals on Wheels America is trying to determine how the directives of this memo may impact millions of our nation’s most vulnerable seniors and the local Meals on Wheels providers who serve them. The memo and further correspondence from OMB have created uncertainty and fear in our providers across the county.”

Hollander says Meals on Wheels funding does not go directly to the individual recipient, and this makes a pause on funding confusing.

Hollander says Meals on Wheels funding does not go directly to the individual recipient, and this makes a pause on funding confusing.

She explains that if the Older Americans Act Nutrition Program funding is paused, which supports senior nutrition programs like Meals on Wheels, it could potentially put millions of vulnerable seniors at risk. The funding flows from the Agency on Aging to around 5,000 community-based nutrition providers and does not directly benefit individuals.

“So, while the memo states the funding pause excludes assistance ‘provided directly to individuals,’ Meals on Wheels funding does not go directly to the individual recipient. That’s where the confusion lies,” adds Hollander. 

Programs like SNAP and WIC provide direct benefits to individuals, and their funding is determined by Congress, meaning OMB cannot unilaterally halt them. However, smaller community initiatives that rely on discretionary federal grants face greater uncertainty under the funding freeze.

Hollander says that “the current lack of clarity and uncertainty creates chaos for local Meals on Wheels providers. Despite not knowing how this pause will impact their future funding, they continue to deliver meals and moments of connection to seniors in their communities. The possibility of a service interruption unfortunately means seniors may panic not knowing where their next meals will come from.”

She further laments that a funding pause is offensive as such programs are already underfunded. “Local providers don’t have the ability to absorb a blow like this if it persists for any extended period. And vulnerable seniors can’t wait for the nutrition assistance and social connections they desperately need.”

Representative Ilhan Omar expressed concerns about how the fund freeze could impact school meal programs, mothers under the WIC program, and progress on medical research. “Congress, not the president, has the constitutional power of the purse.”