Alexandria nonprofits can breathe a sigh of relief after the White House today rescinded a controversial order by President Trump’s administration to withhold all federal grants and loans.
The Trump administration ordered a halt to all federal and grant programs on Monday (Jan. 27), and it was soon after temporarily blocked from going into effect until Monday, Feb. 3. The block was issued by U.S. District Court Judge Loren L. AliKhan and the White House rescinded the order on Wednesday (Jan. 29).
It’s been a stressful week for Heather Peeler, the CEO of ACT for Alexandria, the community foundation that fundraises for more than 175 Alexandria nonprofit.
“Because nonprofits rely on government funding and charitable donations to fund their work, the federal funding freeze is concerning,” Peeler said. “The situation is changing rapidly, and we are working with the City of Alexandria, our elected officials, and other partners to monitor the situation, assess the impact, and determine how best to support our nonprofit partners and the community.”
Peeler added, “We do know, however, that even a few weeks without funding would be devastating for affected nonprofits and the community members they support.”
The block was announced in a memo to executive departments and agencies from Matthew J. Vaeth, the acting director of the Office of Management and Budget. On Tuesday (Jan. 28), the White House released a fact sheet on the order.
“In Fiscal Year 2024, of the nearly $10 trillion that the Federal Government spent, more than $3 trillion was Federal financial assistance, such as grants and loans,” Vaeth wrote. “The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve.”
Virginia Senators Tim Kaine and Mark Warner, both Democrats, put out a joint statement that the “reckless and illegal order will have an immediate and profound negative impact on Americans all over the country.”
“In every corner of Virginia alone, there are enormous, game-changing economic developments projects happening right now that depend on federal spending appropriated by Congress,” Kaine and Warner wrote. “Whether it’s Helene recovery in Southwest… semiconductor manufacturing in Northern Virginia… pharmaceutical jobs in Richmond… renewable energy in coastal Virginia… or the Microporous expansion in Southside – every one of these projects is in part the result of federal funding from laws we fought tooth and nail to pass in Congress, and could now be endangered thanks to President Trump’s mess.”
Annual federal grants to states amounted to $1.1 trillion during the pandemic in fiscal year 2022, and were the second-largest source of state revenue, behind tax collections. That year, federal grants amounted to 27.6% of Virginia’s revenue, according to a study by the Pew Charitable Trusts.
Peeler said that far too many Alexandrians have been on the financial edge.
“More than 25% of Alexandrians are working but struggle to afford the basics like housing, childcare, and health care,” Peeler said. “Our nonprofit partners have been diligently working to address housing and food insecurity, access to childcare and health care, and provide a range of supports. In addition, they have been navigating a ‘post-COVID-funding cliff’ — a national and local drop in charitable donations and federal funding for the social safety net.”
The news comes as the Trump administration’s immigration policy is being criticized in and around Alexandria.
Mayor Alyia Gaskins, on Wednesday, released a statement that recent immigration enforcement raids in nearby jurisdictions have resulted in “fear, confusion, and concern,” and that the city won’t assist federal investigators.
