The White House budget office has ordered a temporary halt to all federal loans and financial assistance programs for review. This unprecedented action could jeopardize trillions in federal aid, significantly impacting the nonprofit sector, which relies on these funds for services such as education and healthcare. Nonprofit leaders express concern over the potential devastating effects this pause could have on vital programs that serve communities. In response, a coalition of nonprofits has filed a motion in court to challenge this funding freeze and prevent harm to vulnerable populations.
The move by the White House budget office is 'a potential 5-alarm fire for nonprofits and the people and communities they serve,' said Diane Yentel.
From pausing research on cures for childhood cancer to closing homeless shelters, halting food assistance, reducing safety, the impact could be devastating and cost lives.
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