Non-profits, health and LGBTQ advocacy groups sue Trump admin over federal aid freeze

A coalition of non-profit organizations and health associations, including an LGBTQ+ advocacy group, took legal action on Tuesday by filing a lawsuit against the Trump administration’s directive to freeze federal aid. The lawsuit, which was filed in a Washington, D.C. federal court, named the Office of Management and Budget (OMB) and acting director Matthew Vaeth as defendants.
The National Council of Nonprofits, the American Public Health Association, the Main Street Alliance, and SAGE are seeking a temporary restraining order to maintain the status quo until the court can fully consider the legality of OMB’s actions. The parties argue that the freeze on federal aid will cause harm to their organizations, which heavily rely on federal funding.
The Trump administration issued a series of memos on Monday, including one from OMB that paused all federal grants and loans in an effort to eliminate what they described as “wokeness” and promote efficiency in government. The memo instructed federal agencies to halt all activities related to financial assistance for DEI initiatives, foreign aid, NGOs, and other programs implicated by the executive orders.
SAGE’s CEO, Michael Adams, expressed concern that the freeze on federal aid would have a devastating impact on older Americans, including LGBTQ+ elders who face unique challenges. Small Business Majority Founder & CEO John Arensmeyer warned that the federal grant freeze would harm small businesses nationwide.
Diane Yentel, President & CEO of the National Council of Nonprofits, criticized the Trump administration’s directive as a reckless action that would be catastrophic for nonprofit organizations and the communities they serve. Yentel highlighted the potential consequences of pausing funding for critical services like childhood cancer research, housing assistance, and suicide hotlines.
The coalition’s lawsuit aims to halt the federal aid freeze before irreparable harm is done to vulnerable populations and essential services. The White House has not yet responded to requests for comment on the matter.
In addition to the federal aid freeze, Trump also signed two executive orders on Monday targeting Diversity, Equity, and Inclusion (DEI) initiatives within the federal government. These orders, titled “Prioritizing Military Excellence and Readiness” and “Restoring America’s Fighting Force,” are set to be implemented by Defense Secretary Pete Hegseth and the Secretary of Homeland Security within 30 days.
The lawsuit and executive orders underscore the ongoing cultural and political battles surrounding DEI initiatives in the federal government. It remains to be seen how these developments will impact the future of federal funding and support for marginalized communities and essential services.