28-01-2025
Chicago area nonprofits in dismay over Trump administration's federal funding freeze
CHICAGO (CBS) -- It remained unclear Tuesday night exactly which federally-funded programs are impacted by a spending freeze on federal assistance ordered by the Trump administration — but some local nonprofits said they are already noticing changes to federal portals online.
Millions in local funding could be in jeopardy, and many Chicago area nonprofits were anxiously waiting late Wednesday for some clarity on the future of their federal grants. The White House has called the freeze a "temporary pause," but the nonprofits worry the impact on the populations they serve could be long-lasting.
"So as of this morning, we are unable to access the federal portal that we use to draw down funds," said John Peller, president and chief executive officer of the AIDS Foundation Chicago. "There's a message that says essentially, 'This is blocked.'"
The error message Peller came across Tuesday morning read, "You are attempting to access eLOCCS [the Line of Credit Control System] outside it's [sic] normal business hours," and went on to say the system was not available Tuesday.
(Here's a look at that error message that AIDS Foundation Chicago President and CEO came across this morning.) quote and describe
Peller said the organization receives about $26 million in federal funding for housing services —including rent to cover about 1,300 households every month for people living with HIV.
While the foundation already paid the rents for February, next month's rent checks are currently unfunded. What if March comes around and those rents can't be paid because of the freeze?
"I don't want to think about it," Peller said. "We're going to do everything possible to tap into our line of credit."
Also worried about the effects the federal funding freeze will have on its programs is Breakthrough, a faith-based nonprofit that builds connections and skills and facilitates opportunity for people on Chicago's West Side.
"I think the most promising and hopeful work we do is early childhood education," said Breakthrough executive director Yolanda Fields.
Fields invited CBS News Chicago to Breakthrough's Garfield Park Men's Center — which provides shelter beds, as well as food and other health and wellness programs, to about 19,000 people in the East Garfield Park area.
"We aren't, you know, spending money in a haphazard way," Fields said.
But Fields also woke up this morning to news that their approximately $2 million in federal funding could also be in jeopardy.
"There's no way to really begin to quantify what would be lost if the $2 million that we receive from federal funds were go away," she said, "and so when we think about serving those who are unhoused, those who are experiencing violence, when we think about those who don't have enough food — all of those things are in jeopardy."
Both Fields and Peller share concerns about the legality of a funding freeze like the one ordered by the Trump administration, and hope any legal challenges provide a swift resolution.
"We are just going to wait to see what happens," Peller said. "This is certainly unprecedented."
CBS News Chicago has also confirmed the University of Chicago sent out a memo to university employees requesting that all university researchers working on federal grants "temporarily suspend their non-personnel spending on federal grants as much as possible during this period of substantial uncertainty."
