How the Federal Grant Freeze Impacts Nonprofits and Freelance Grant Writers

On Jan. 27th there was a memo from the Executive Office of the President of the United States to all federal agencies to pause all funding by 5 pm on Tuesday, Jan. 28th and to pause federal grant funding.
​Full Memo: chrome-extension://bdfcnmeidppjeaggnmidamkiddifkdib/viewer.html?file=static01.nyt.c...
Organizations - National Council of Nonprofits and others - sued the Office of Management and Budget and a federal district judge paused the freeze until Monday, Feb. 3rd.
www.reuters.co...
The Trump Administration signed Executive Orders to change priorities away from DEI, environment justice, gender ideology, and other priorities that were under the Biden Administration.
www.whitehouse...
At Grant Writing & Funding, we understand that and have been preparing for that to help serve freelance grant writers that serve those specific cause areas. We've been talking about it in our Academy and Mentorship, and developing new materials and resources.
This potential federal grant freeze seemed slated for all existing grants across all federal agencies and many argue that freezing congressionally-approved funding and contracts is illegal.
What does this mean for you as a freelance grant writer or you who work at a nonprofit?
Well, it's unclear.
This could be taken to the Supreme Court for ruling and the federal funding freeze may be ruled unconstitutional and never happen. Or something else could change.
As with any new Administration we will see priority areas change and that means grant funding trends will change.
Some of the biggest potential shortfalls in federal funding priority areas that we will see during this Administration will be related to DEI, environmental justice, LGBTQ, and reproductive rights.
We will potentially see more federal funding in certain workforce development sectors, private schools, and energy-related fields.
In any case, it's important to start stepping up as a Grant Strategist in 2025 to better serve your clients.
2025 Strategies to Think About for Your Nonprofit Clients
Advocate
-Contact Congress, Your Government Representatives, and Community Advocates to ensure already approved funding does not freeze. If you are in a certain cause area that might be negatively impacted by the change in priority, you can also advocate on behalf of your cause.
-Reach across party lines for support and form bipartisan coalitions. Let's stop isolating from one another and try and come together for solutions.
Evaluate the Nonprofit's Budget
-What is imminent right now to fund?
-What is okay to pause?
-Where can you tap into board members, volunteers, matching, in-kind, stakeholders, etc?
-Can you create any reserves?
Put ALL Cash Ideas on the Table
-See if you need to reallocate current program funding to unrestricted funding (reach out to funding sources to seek budget modifications, if needed)
-Emergency funding - Find emergency grants, reach out to your current funders
-Short-term loans - contact your bank for a low-interest loan
-Keep applying to grants in 2025. You may need to shift from federal to foundation or to State. Be open to learning how to write all types of grants.
Broaden or Double-Down on other Types of Funding
-Different Services you can, or may want to learn:
-Individual Donor Plan
-Corporate Solicitation Strategy (we will be teaching this inside the Academy)
-Events / Fundraisers
-Crowdfunding Campaign
Conduct a Strategic Plan
-Conducting a Nonprofit Strategic Plan can bring together your stakeholders right now (we offer how to do this inside the Academy).
Innovate: Lean into and brainstorm more strengths and opportunities in your -SWOT Analysis with your board and stakeholders
Practice Self-Care
-Remember: We’ve made it through Covid-19 pandemic, inflation, and a lot of hard things. How can you reduce overwhelm now? Take a breath. We've done hard things and have learned how to pivot.
-Calm the nervous system by a 20-minute walk, watching a comedy movie, breathing for 5-minutes in peace and quiet, eating a healthy meal, etc.
We will be continuing to update you with more information as it is released, and keep you updated on freelance grant writer strategies for 2025.
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