A federal judge temporarily blocked the Trump administration's spending freeze on federal grants and loans, providing relief to Chicago nonprofits facing uncertainty about critical funding. Nonprofits reported immediate disruptions to accessing federal portals, raising concerns about the long-term impact on essential services for vulnerable populations.
CHICAGO - A federal judge temporarily blocked a spending freeze on federal grants and loans ordered by the Trump administration, halting the potential disruption to millions of dollars in local funding for nonprofits in Chicago. The ruling came as the freeze was set to take effect Tuesday afternoon, providing a temporary reprieve for organizations that rely heavily on federal support.
\Local nonprofits reported immediate changes to federal portals online, with some unable to access funds crucial for their operations. John Peller, president and CEO of the AIDS Foundation of Chicago, said his organization received an error message stating the system was unavailable, preventing them from accessing the $26 million in federal funding they receive annually for housing services. Peller expressed deep concern about the long-term impact of the freeze, particularly on the 1,300 households they assist each month. \Yolanda Fields, executive director of Breakthrough, a faith-based nonprofit serving about 19,000 people annually in Chicago's Garfield Park area, echoed Peller's worries. Breakthrough receives approximately $2 million in federal funding for its programs, which include housing, education, youth development, health, and wellness services. Fields emphasized the essential nature of these services, stating, 'We're talking about essential services that people need to live.' The uncertainty surrounding the funding freeze cast a shadow on Breakthrough's operations, particularly its efforts to serve vulnerable populations like the homeless and those experiencing violence. Both Fields and Peller voiced concerns about the legality of the freeze, hoping for a swift resolution through legal challenges. \The University of Chicago also confirmed they had sent a memo to employees advising researchers working on federal grants to temporarily suspend non-personnel spending in light of the freeze. The White House budget office had directed federal agencies to assess compliance with President Trump's executive orders, specifically targeting 'DEI, woke gender ideology and the Green New Deal.' The White House cited $3 trillion in spending on federal assistance programs in 2024, highlighting the vast scale of potential impact
FEDERAL FUNDING NONPROFITS TRUMP ADMINISTRATION CHICAGO LEGAL CHALLENGES GOVERNMENT SPENDING
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