Sudden Freeze Sparks Chaos for Shelter Providers
Faith-based nonprofits across the U.S. are facing financial turmoil after a brief but impactful freeze on federal funding. Stacey Hall Burge, CEO of Cincinnati-based Found House Interfaith Housing Network, said her organization nearly lost the ability to support hundreds of families. “There are rents and supports for hundreds of families I am not sure how to pay,” Burge told Sojourners. The disruption stemmed from a Jan. 27 executive order by former President Donald Trump, which mandated a freeze on all federal financial assistance. The sudden halt in disbursements left many organizations scrambling for answers and contingency plans.
Legal Challenges Question Constitutionality of Order
The Trump administration’s move triggered immediate legal scrutiny. Experts at Protect Democracy argued the order violated Article I of the U.S. Constitution by bypassing Congress’s control over federal spending. Courts have temporarily halted the freeze, and the Office of Management and Budget rescinded the memo on January 29. However, uncertainty persists for organizations that rely heavily on government grants to sustain their daily operations. Leaders fear that similar future actions could again jeopardize critical services and create ongoing instability for vulnerable populations.
Nonprofits Brace for a Volatile Future
Although the freeze lasted only a few days, its ripple effects have been long-lasting. Nonprofit leaders worry the situation has undermined trust in federal support. “This is one of the greatest periods of stress for nonprofit leaders since COVID first began,” said Daniel Jenkins, president of StoryFind Films. Even groups not directly funded by the government fear competition for limited private donations will intensify. Some nonprofits are already scaling back services or revising budgets to prepare for future disruptions. Jenkins urged collaboration over competition, warning that division within the sector could deepen the crisis.
Aid Cuts Leave Migrant Families on the Streets
In Costa Rica, Casa Esperanza, a shelter for migrant families, was forced to lay off staff and evict vulnerable residents after losing UNICEF funding tied to U.S. aid. “We had to leave nine children and 24 adults out on the streets,” said co-leader James Padilla DeBorst. He warned of growing risks from cartels and human traffickers targeting displaced migrants. Despite the uncertainty, Casa Esperanza is working with private donors to maintain limited services and continue its mission of hospitality and protection.
Concerns Cross Political Lines
Back in Cincinnati, Burge called for unity and compassion, insisting that housing is a human right. “Even my loved ones who voted for Trump didn’t vote for this chaos,” she said. Many nonprofit leaders share her view that the freeze signals a breakdown in the American social contract. They argue that social services should not be subject to shifting political winds. As legal battles continue, organizations like Found House are developing backup plans while holding onto hope that the country can re-center on shared human values and responsibilities.
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‘Chaos’ and ‘Confusion’ for Faith-Based Nonprofits After Funding Freezes
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