Nonprofits in shock as White House looks to halt grant funding
SIOUX FALLS, S.D. (KELO) — Tuesday, the federal government tried to pause all federal grants and loans. However, a federal judge has temporarily blocked a Trump administration freeze that had local nonprofits and small businesses looking for answers.
The White House freeze will put trillions of dollars in limbo, affecting everything from health care research to money for charities. Small businesses and state government programs are bracing to temporarily go without government funds.
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According to a memo from the Executive Office of the President, during the pause, federal agencies will take a closer look at where the money is going. And to make sure it supports the President's priorities, which include ending 'wokeness' and making the government more efficient.
Emily's Hope, a nonprofit started and run by Angela Kennecke, relies on donations and grant money to complete its mission of saving lives and removing the stigma of substance use disorder. 'We know we have to have programs in place to reduce substance use. And this is bipartisan this isn't something that is Democrat or Republican this is something to save our kids and it's needed and we want to do it we have the ideas in place, but we have to have the funding,' said Kennecke. Senator Amy Klobuchar of Minnesota was visibly upset about the freeze and called it an unconstitutional power grab. 'As we stand here today, people should think about the mom who doesn't know if she can get her kid to child care today. Or they should think about the teenager in a cancer study hoping by on hope that that's going to save his life. Or they should think about the people from Minnesota when last week, on the day of that inauguration, it was minus six degrees, who depend on heating assistance,' said Klobuchar.Kennecke says freezing the grants has sent shockwaves through the nonprofit community.Dozens of nonprofits in South Dakota expect to feel the impact. For instance, the Compass Center in Sioux Falls, which provides support for survivors of sexual and domestic violence, is stopping its Youth Violence Intervention and Prevention program. Kennecke says she has talked with the leaders of other nonprofits and there is a lot of confusion. 'We've had a webinar canceled that was going to help guide us on some of the logistics of this grant that has been canceled so I just think as I said there are more questions than answers and that is a difficult place to be as a nonprofit that goes day by day with funding,' said Kennecke.
A U.S. District Judge blocked the freeze by the Trump Administration late Tuesday afternoon, minutes before it was set to go into effect. There will be another hearing on Monday. In its lawsuit, the National Council of NonProfits says the Trump Administration is at liberty to advance its priorities, but it must do so within the confines of the law.
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