This week has left Pennsylvania nonprofits - indeed nonprofits nationwide - bewildered, wondering if critical funding would be frozen due to a Federal Office of Budget and Management memo pausing all federal grants.
Nonprofit advocates have been working around the clock and were successful in getting a federal judge to temporarily halt the freeze. The White House subsequently rescinded the memo; however, the executive orders that prompted the freeze are, as far as we know, still in effect. The situation is chaotic, information is moving rapidly, and we continue to monitor the situation – with you at our side.
This Week – So Far
The federal Office of Management and Budget issued a pause on all "federal funding assistance" in a vaguely worded memo, leading to uncertainty for nonprofits with federal funds as well as those with state funds from federal sources. The National Council of Nonprofits took swift action with nonprofit partners to file suit in federal court to have the funding freeze blocked. Just before the freeze was set to take effect, United States District Court Judge Loren L. AliKhan issued an Administrative Stay through Monday, February 3 at 5:00 PM ET.
Below are links to documents related to the funding pause and while apparently will not be fully implemented, these documents signal where federal grants are going in this administration.
Where Do Things Stand?
With the order rescinded it is not clear how things will unfold. Clearly, the administration has signaled big changes to federal grants are coming and nonprofits need to be prepared.
What Should Nonprofits Do Now?
- If you normally use a federal portal to draw down your funding, initiate the draw down right now. If you get a website error, keep trying - some organizations were successful in their draw downs yesterday, others only after repeated attempts. Use your typical request form, without requesting advance funds if not normally allowed. Expedite your December/January invoices.
- If you receive any federal funding – whether directly from the federal government or a pass-through, such as a state or locality – reach out to your grant/contract contact immediately to ask if there are any changes to your award, payment schedule or processes.
- If you receive confirmation that your funding will be affected, if you get automatic replies that staff are on administrative leave, or other challenges, please fill out this form to help the National Council of Nonprofits understand the scope of programs affected.
- Plan for funding and cash flow contingencies. You may want to contact your bank to secure or increase your line of credit.
You are not alone! The PANO network is here.
Let us know impacts we may have missed in this recap – and reach out to each other. We will continue to amplify your voices about the importance of continued funding for the critical work of nonprofits in our communities. |
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