The federal funding freeze announced by the Office of Management and Budget (OMB) on January 27 created widespread uncertainty in our sector. The directive temporarily blocked disbursement of federal grants and loans—excluding programs like Social Security, Medicare, Medicaid, and SNAP—to ensure compliance with recent executive orders.
Still, initial confusion about the directive’s scope led to intended and unintended disruptions, including delays in different types of program funding. Although OMB later clarified that many essential programs would continue without interruption, concerns remain regarding the impact on Section 8 housing vouchers, school food programs, and other key initiatives.
In response, lawsuits have been filed by nonprofits and state governments. On February 3, a federal judge granted a temporary restraining order, halting the freeze. This follows a similar ruling by another judge after a separate lawsuit. Despite these legal interventions, reports of payment delays continue.
Lutheran Services in America president and CEO Alesia Frerichs issued a statement highlighting the disruptive effects on Lutheran social ministries. We are actively engaging with coalition partners and monitoring developments.
TAKE ACTION:
- We encourage you to join us in taking action by calling your members of Congress and governors to express concerns about the funding freeze’s impact.
- Please share information on any interruptions or challenges your organization is still experiencing. Contact Sue Polis or Sarah Dobson.
Sue Polis is Vice President of Public Relations and Government Affairs at Lutheran Services in America. Sarah Dobson is Senior Director of Advocacy and Public Policy at Lutheran Services in America.
