White House rescinds federal grant freeze

The White House rescinded an order that froze federal grants for nonprofits, public health organizations, universities, and state and local governments, including Emily’s Hope in Sioux Falls, on Wednesday.

When it was announced late Monday, this temporary pause, intended to review compliance with the president’s executive orders, had thrown federally funded programs nationwide into disarray. By Tuesday, a federal judge had blocked the funding pause minutes before it went into effect.

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 jeopardized 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.

Emily’s Hope founder Angela Kennecke was relieved by the Trump Administration’s decision.

“This is not a political issue; it’s a matter of saving lives,” Kennecke said. “We’re eager to continue our work to protect our youth from the substance use crisis.”

The National Council of Nonprofits and public health advocates filed a lawsuit Tuesday, which successfully granted a temporary restraining order to halt the freeze until Monday.

“We are glad that this memo has been rescinded. The chaos unleashed by the uncertainty and lack of adequate notice yesterday should never have happened. Nonprofits are vital partners for government, and payment for the services they provide should never have been in question,” said National Council of Nonprofits President & CEO Diane Yentel. “Nonprofit organizations throughout the country and the people they serve can breathe a sigh of relief now that the White House has, at least for now, backed off its reckless and harmful plan to halt all federal funding for critical programs.”