Thursday, February 6, the White House issued a Memorandum for the heads of Executive Departments and Agencies regarding funding to Nongovernmental Organizations (NGOs), the latest federal order targeting nonprofits.
What is a NGO (nongovernmental organization)? While there is no fixed or formal definition, NGOs are generally defined as nonprofit entities independent of governmental influence, although they may receive government funding.
From the memo: “It is the policy of my Administration to stop funding NGOs that undermine the national interest. I therefore direct the heads of executive departments and agencies to review all funding that agencies provide to NGOs. The heads of agencies shall align future funding decisions with the interests of the United States and with the goals and priorities of my Administration, as expressed in executive actions…”
The memo does not state specific NGOs.
Bottom line: Federal agencies are being directed to “review all funding that agencies provide to NGOs” and are given authority to “align future funding decisions with the interests of the U.S.”
This funding review is to ensure alignment with the Administration’s Executive Orders. How these Executive Orders affect nonprofits.
This memo is extremely troublesome and puts nonprofit services and operations into jeopardy. MCN is connecting with federal partners to better understand the Memo’s scope, timeline, and specific implications for nonprofits that receive federal funding.
Related resources & reading
- Resources to navigate uncertainty
- Survey: Share the impact of federal decisions on your nonprofit
- Judge issues temporary restraining order on OMB freeze (February 4, 2025)
- MCN speaks at press conference on impact of federal funding freeze (January 31, 2025)
- Attorney General Ellison announces initial victory in lawsuit challenging President Trump’s illegal federal funding freeze (January 31, 2025)
- Rescinded: OMB freeze of federal grants (January 29, 2025)
- Nonprofits, public health leaders, small businesses file suit to block OMB attempt to halt essential services (January 28, 2025)
- Press release: Widespread distress from nonprofits in serving Minnesota communities in response to federal grants freeze (January 28, 2025)
- OMB freeze of federal grants & loans (January 28, 2025)
- Executive orders affecting nonprofits (January 22, 2025)