Freeze on federal money for LI nonprofits: Chaos reigns over Trump order
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White House press secretary Karoline Leavitt. Credit: AP/Alex Brandon
Long Island’s not-for-profit leaders — operators of food pantries and domestic violence shelters, providers of services to veterans, seniors and people with substance use disorders — were whipsawed Wednesday as the White House budget office rescinded a memo freezing some federal grants, a major source of operating funds for many charitable groups.
The retraction was a relief to many who had interpreted the initial notice as potentially impacting trillions of dollars in federal funding. Then the White House appeared to qualify the retraction, saying, while the memo was rescinded, Trump’s underlying executive orders targeting federal spending in areas like diversity, equity and inclusion and climate change remained in place.
"This is NOT a rescission of the federal funding freeze," White House press secretary Karoline Leavitt wrote in a social media post. The freeze had been stayed by a federal judge until at least Monday after an emergency hearing requested by nonprofit groups that receive federal grants, and an additional lawsuit by Democratic state attorneys general was pending.
A federal judge presiding over the second lawsuit said Wednesday he was "inclined" to grant a temporary stay, calling the White House's various round of statements "hugely ambiguous," according to media reports.
It was enough to flummox Jeffrey Reynolds, president and chief executive of the Mineola-based Family & Children’s Association, serving struggling families, at-risk adolescents, vulnerable seniors and adults with substance use disorders.
"It feels like we’re on a roller coaster ride," he said. "These dollars translate into services for thousands of Long Islanders and into jobs for people who are doing really important work and now feel a lot less secure about their own financial futures."
Reynolds, whose organization pays a quarter of its budget with $6.5 million in federal grants, said he and his colleagues had spent part of the week so far "trying to figure out what, in god’s name, we would do if we lost $6.5 million in funds overnight." The money funds 70 jobs at the organization, along with services for thousands of Long Islanders, he said.
At CARECEN, an organization with offices in Brentwood and Hempstead that offers legal assistance and English classes to immigrant communities, executive director Melanie Creps said "nothing has been confirmed" but she believes groups supporting immigration might eventually be targeted for funding cuts.
"It’s the most obvious assumption, which is terrifying," she said. Creps said grant funding reaching six figures could be at stake, affecting staff, clients and Long Island overall. "Communities are going to suffer," she said. "We rely on immigrants, across the board."
Cate Carbonaro, executive director of the East Hampton-based The Retreat, whose programs aid survivors of domestic violence and sexual assault and support fathers in need — the only one of its kind on Long Island — said on Tuesday and Wednesday, her staff was unable to access a critical federal grant portal they use to fund much of their work, though it was unclear why.
"We can’t pause," she said. "We can’t afford to stop this work for even a day. We stay out of politics and we work for our clients. I don’t want to have to rely on begging people for money, but I will."
The Monday budget office memo required federal agencies to "temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal."
A clarification issued by the White House Tuesday said programs providing "direct benefits to Americans," including Social Security, Medicare, Medicaid and food stamps, were exempted from the review.
Some leaders said their operations had already been affected.
"There is so much fear and anxiety within the Hispanic community on Long Island, that individuals and families are literally fearful to go to the food pantry," Paule Pachter, CEO of Hauppauge-based Long Island Cares-The Harry Chapin Regional Food Bank, said. "They’re not sure if they’re being followed by ICE, or Homeland Security or local law enforcement. [The prospect of] mass deportation sends a lot of people underground."
Randi Shubin Dresner, president and chief executive of Island Harvest Food Bank in Melville, which provides food, SNAP enrollment, workforce development and other services, said she and her colleagues were working to "keep on top of it, but some of the messages are changing quickly ... We need to be nimble."
Megan Allen, New York Council of Nonprofits CEO, said in an announcement to the group’s members Wednesday that more White House action on federal spending could be on the way.
"We may see a revised Executive Order that would be equally harmful to us and the communities we serve," she wrote.
Some major nonprofits, like Catholic Charities of Long Island and Northwell Health, declined to comment or said only that they were monitoring for potential impact. Theresa Regnante, President and CEO of the United Way of Long Island, which receives about $9 million in federal funding annually, said the week’s events had created "a lot of fear, a lot of unnecessary escalating of peoples’ anxiety in a time when anxiety is already high."
Her organization’s initiatives are as varied as supportive housing for veterans, emergency food for the hungry and financial aid for Long Islanders paying security deposits to move into their first apartments.
"This isn’t checkers — this is people’s lives," she said.
With The Associated Press and Robert Brodsky
Long Island’s not-for-profit leaders — operators of food pantries and domestic violence shelters, providers of services to veterans, seniors and people with substance use disorders — were whipsawed Wednesday as the White House budget office rescinded a memo freezing some federal grants, a major source of operating funds for many charitable groups.
The retraction was a relief to many who had interpreted the initial notice as potentially impacting trillions of dollars in federal funding. Then the White House appeared to qualify the retraction, saying, while the memo was rescinded, Trump’s underlying executive orders targeting federal spending in areas like diversity, equity and inclusion and climate change remained in place.
"This is NOT a rescission of the federal funding freeze," White House press secretary Karoline Leavitt wrote in a social media post. The freeze had been stayed by a federal judge until at least Monday after an emergency hearing requested by nonprofit groups that receive federal grants, and an additional lawsuit by Democratic state attorneys general was pending.
A federal judge presiding over the second lawsuit said Wednesday he was "inclined" to grant a temporary stay, calling the White House's various round of statements "hugely ambiguous," according to media reports.
WHAT NEWSDAY FOUND
- The White House budget office on Wednesday rescinded a federal memo freezing spending on federal grants “including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”
- The freeze had prompted confusion across a wide swath of nonprofit organizations that depend on federal funding, especially after the White House press secretary said the executive order behind the memo was still in effect.
- Leaders of some Long Island’s nonprofits said the news of the memo's rescinding did not quell anxiety for staff and clients after a “rollercoaster” few days.
It was enough to flummox Jeffrey Reynolds, president and chief executive of the Mineola-based Family & Children’s Association, serving struggling families, at-risk adolescents, vulnerable seniors and adults with substance use disorders.
"It feels like we’re on a roller coaster ride," he said. "These dollars translate into services for thousands of Long Islanders and into jobs for people who are doing really important work and now feel a lot less secure about their own financial futures."
Reynolds, whose organization pays a quarter of its budget with $6.5 million in federal grants, said he and his colleagues had spent part of the week so far "trying to figure out what, in god’s name, we would do if we lost $6.5 million in funds overnight." The money funds 70 jobs at the organization, along with services for thousands of Long Islanders, he said.
At CARECEN, an organization with offices in Brentwood and Hempstead that offers legal assistance and English classes to immigrant communities, executive director Melanie Creps said "nothing has been confirmed" but she believes groups supporting immigration might eventually be targeted for funding cuts.
"It’s the most obvious assumption, which is terrifying," she said. Creps said grant funding reaching six figures could be at stake, affecting staff, clients and Long Island overall. "Communities are going to suffer," she said. "We rely on immigrants, across the board."
Cate Carbonaro, executive director of the East Hampton-based The Retreat, whose programs aid survivors of domestic violence and sexual assault and support fathers in need — the only one of its kind on Long Island — said on Tuesday and Wednesday, her staff was unable to access a critical federal grant portal they use to fund much of their work, though it was unclear why.
"We can’t pause," she said. "We can’t afford to stop this work for even a day. We stay out of politics and we work for our clients. I don’t want to have to rely on begging people for money, but I will."
The Monday budget office memo required federal agencies to "temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal."
A clarification issued by the White House Tuesday said programs providing "direct benefits to Americans," including Social Security, Medicare, Medicaid and food stamps, were exempted from the review.
Some leaders said their operations had already been affected.
"There is so much fear and anxiety within the Hispanic community on Long Island, that individuals and families are literally fearful to go to the food pantry," Paule Pachter, CEO of Hauppauge-based Long Island Cares-The Harry Chapin Regional Food Bank, said. "They’re not sure if they’re being followed by ICE, or Homeland Security or local law enforcement. [The prospect of] mass deportation sends a lot of people underground."
Randi Shubin Dresner, president and chief executive of Island Harvest Food Bank in Melville, which provides food, SNAP enrollment, workforce development and other services, said she and her colleagues were working to "keep on top of it, but some of the messages are changing quickly ... We need to be nimble."
Megan Allen, New York Council of Nonprofits CEO, said in an announcement to the group’s members Wednesday that more White House action on federal spending could be on the way.
"We may see a revised Executive Order that would be equally harmful to us and the communities we serve," she wrote.
Some major nonprofits, like Catholic Charities of Long Island and Northwell Health, declined to comment or said only that they were monitoring for potential impact. Theresa Regnante, President and CEO of the United Way of Long Island, which receives about $9 million in federal funding annually, said the week’s events had created "a lot of fear, a lot of unnecessary escalating of peoples’ anxiety in a time when anxiety is already high."
Her organization’s initiatives are as varied as supportive housing for veterans, emergency food for the hungry and financial aid for Long Islanders paying security deposits to move into their first apartments.
"This isn’t checkers — this is people’s lives," she said.
With The Associated Press and Robert Brodsky
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