Last week’s news regarding a potential freeze of federal grant funding created significant uncertainty. While the courts have intervened to halt the freeze, the situation remains fluid, and the potential impact on Community Action Agencies (CAAs) across the nation is concerning. A freeze on federal grants could affect essential programs that support families and communities, including Head Start and the Community Services Block Grant.
OUCAN stands with CAAs and nonprofits nationwide as we closely monitor developments. We have also joined local and statewide nonprofit organizations in issuing a joint statement with Advocates for Ohio’s Future and the Center for Community Solutions, acknowledging the courts’ rulings and emphasizing the need for clarity moving forward.
To help provide a clearer picture of recent events, here is a brief timeline:
Timeline of Events
Monday, Jan. 27
The Office of Management and Budget (OMB) issued a memo suspending funding for over 50 programs until questions about potential conflicts with recent Executive Orders were answered.
Tuesday, Jan. 28
A federal judge issued an administrative stay, blocking the grant freeze just before it was set to take effect. This ruling followed a lawsuit by the National Council of Nonprofits.
Wednesday, Jan. 29
OMB rescinded the original memo with a brief, one-sentence statement.
Thursday, Jan. 30
The White House Press Secretary stated on social media that the rescission did not necessarily lift the freeze.
Friday, Jan. 31
A second federal judge ruled against the administration in a lawsuit brought by 27 attorneys general.
Monday, Feb. 3
Awaiting further clarification on the first judge’s deadline.
Next Steps & Staying Informed
David Bradley, Executive Director of the National Community Action Foundation, has encouraged CAAs to engage with their Members of Congress, reinforcing the historically bipartisan support for these programs. While we anticipate continued debate and potential policy shifts, we remain committed to working together to protect the services that empower families and communities.
“Thank you for your patience and support as we continue to assess the implications of the federal grant pause,” Yvonne Cherell, OUCAN’s Chief Executive Officer, said. “Together, we are determined to ensure that every Ohioan has the resources they need to thrive.”
"We are working together to get the answers we all need while ensuring that our agencies and the communities we serve remain supported,” Jacklyn Chisholm, Ph.D., OUCAN’s Board Chair and Step Forward’s President and Chief Executive Officer, said. “Now, more than ever, we must uphold the values that have guided us for decades—compassion, resilience, and a deep belief in the dignity and potential of every individual."
To stay informed, we encourage you to utilize the National Council of Nonprofits for real-time policy analysis, advocacy tools, and resources. Their regularly updated chart detailing Executive Orders that impact the nonprofit sector can be found here: www.councilofnonprofits.org.
Thank you for your patience and support. Together, we can navigate these changes and continue our mission of serving Ohio’s communities.
