NORTH CAROLINA — A federal judge has temporarily blocked the White House’s decision to pause federal grants and loans, leaving local nonprofits in uncertainty.
The pause, announced by the Trump administration, was intended to freeze all federal aid, but the intervention by the judge came after North Carolina and 22 other states filed a lawsuit against the move.
“There are a lot of calls and emails flying around today,” said Tara Peele, CEO of Housing Collaborative, highlighting the confusion among nonprofits.
Jessica Lefkowitz, Executive Director of Hearts for the Invisible, expressed concern, stating, “All of our social services could directly be impacted by this. It’s just not a good state to be in, especially as a service provider.”
A memo from the Office of Management and Budget clarified that programs like Medicare and Social Security are exempt from the freeze, but organizations such as Hearts for the Invisible are not. Nonprofits are using the temporary block to seek clarity on how the potential pause might affect their funding and operations.
The judge’s delay provides a brief respite for nonprofits as they work to understand the implications of the federal aid pause, which could significantly impact their services.
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