Update at 4:30 p.m. CT: A federal judge temporarily blocked the federal grant freeze minutes before it officially took effect. The administrative stay pauses the freeze until Monday, according to the Associated Press.
SIOUX FALLS, S.D. — Nonprofit and public health organizations, including Emily’s Hope in Sioux Falls, are bracing for the impact of a sudden federal grant freeze announced by the Trump administration. The Office of Management and Budget (OMB) issued a memo halting all federal spending outside of programs such as Social Security and Medicare, effective 5 p.m. (ET) Tuesday. This temporary pause, intended to review compliance with the president’s executive orders, has thrown federally funded programs nationwide into disarray.
Emily’s Hope, the first coalition in Sioux Falls to receive Drug-Free Communities (DFC) funding, leads critical substance use prevention initiatives for local youth. The freeze jeopardizes programs such as art competitions promoting drug- and alcohol-free messaging, parent workshops on fentanyl dangers, and the newly launched Youth Empowerment Clubs in high schools.
“Overdose deaths in Sioux Falls rose by 44% in 2024, and 11 pounds of fentanyl were seized locally last year,” said Angela Kennecke, founder of Emily’s Hope. “We cannot afford to lose the momentum we’ve built to protect our youth from the substance use crisis. This freeze threatens not just programs but lives.”
Legal Pushback Grows
A coalition of nonprofits and public health advocates filed a lawsuit Tuesday, seeking a temporary restraining order to halt the freeze. Attorneys general from several states, including Rhode Island and New York, argue the administration’s actions violate constitutional and federal law, which mandates that funds appropriated by Congress must be spent as intended.
“Halting this funding would lead to pauses of important community programs, food and safety assistance, and lifesaving research,” the lawsuit states. “Even a short pause could be devastating, decimating organizations, costing lives, and leaving neighbors without the services they need.”
Administration Response
In a press briefing, White House press secretary Karoline Leavitt defended the freeze as a “responsible measure” to ensure federal spending aligns with the administration’s goals. The OMB memo indicated funding cuts would target programs deemed inconsistent with executive orders, including diversity, equity, and inclusion initiatives, environmental programs, and what the administration referred to as “wokeness.”
No timeline was provided for the freeze, leaving organizations like Emily’s Hope unable to access critical funds.
“The Federal Health and Human Services website is down, and we have been unable to obtain reimbursement for federally funded programming,” Kennecke said.
A Call for Bipartisan Action
Emily’s Hope is urging federal leaders, including South Dakota’s congressional delegation, to take immediate steps to ensure funding continuity.
“This is not a political issue; it’s a matter of saving lives,” Kennecke said. “We urge our leaders to restore funding swiftly to prevent devastating consequences for our community and countless others across the nation.”
As legal challenges progress, nonprofits and public health organizations remain in limbo, uncertain of their ability to continue offering vital services to the communities that depend on them.