Freeze on federal money for LI nonprofits: Chaos reigns over Trump order

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veterans, seniors and people with substance use disorders — were whipsawed Wednesday as the White House budget office rescinded a memo freezing some federal grants, a major source of operating funds for many charitable groups.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 Then the White House appeared to qualify the retraction, saying, while the memo was rescinded, Trump’s underlying executive orders targeting federal spending in areas like diversity, equity and inclusion and climate change remained in place.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.

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