President Donald Trump has issued a new memo directing U.S. agencies to reevaluate financial support for nongovernmental organizations (NGOs). Citing concerns that some NGOs “actively undermine the security, prosperity, and safety of the American people,” the memo mandates that federal funding decisions align with his administration’s priorities.
Specifically, the request is for future funding decisions to align with issued executive orders—potentially impacting grants that support critical humanitarian aid, development programs, and capacity-building initiatives both within the United States and abroad.
Below is a copy of the memo, along with answers to key questions regarding this new guidance. We will continue to monitor developments and provide updates to nonprofits as appropriate.
| Below is a full copy of the memo: SUBJECT: Advancing United States Interests When Funding Nongovernmental Organizations The United States Government has provided significant taxpayer dollars to Nongovernmental Organizations (NGOs), many of which are engaged in actions that actively undermine the security, prosperity, and safety of the American people. It is the policy of my Administration to stop funding NGOs that undermine the national interest. I therefore direct the heads of executive departments and agencies (agencies) to review all funding that agencies provide to NGOs. The heads of agencies shall align future funding decisions with the interests of the United States and with the goals and priorities of my Administration, as expressed in executive actions; as otherwise determined in the judgment of the heads of agencies; and on the basis of applicable authorizing statutes, regulations, and terms. |
| Here are some explanations related to this memo: What is an Executive Order, and what are its powers and limitations? An executive order is a directive issued by the U.S. President that manages operations within the federal government. It has the force of law but does not require congressional approval. Presidents use executive orders to direct federal agencies, enforce laws, or set policies. Powers: Can direct federal agencies on how to enforce laws. Can influence policy areas like immigration, labor, national security, and foreign aid. Can be issued quickly without congressional approval. Limitations: Must Be Based on Existing Law – The President cannot create new laws, only direct how existing laws are implemented. Can Be Overturned by Congress – Congress can pass a law overriding an executive order, though the President can veto it. Can Be Challenged in Court – Courts can strike down executive orders if they are unconstitutional or exceed executive authority. Can Be Reversed by Future Presidents – New administrations can revoke or replace previous executive orders. Nonprofit vs. Nongovernmental Organization A nonprofit organization is a nongovernmental organization and is the term used globally to describe what the United States refers to as nonprofit organizations. Opinion: This memo is likely targeted at nonprofits in the United States working with refugees and other non-citizens and nonprofits funded by USAID to support foreign aid. What is USAID? The United States Agency for International Development (USAID) is the U.S. government agency responsible for providing foreign aid and development assistance. It works to promote global economic growth, democracy, humanitarian aid, health, and disaster relief in partner countries to support U.S. foreign policy and national security goals. How is this different than the previous memo targeting nonprofit funding? The previous memo from President Trump paused all federal funding on contracts, which a federal judge blocked, and the memo was ultimately rescinded. This new memo makes recommendations for future funding; however, there are no measures for alignment. Opinion: The President can make recommendations for a budget, but it is ultimately the power of Congress (Senate and House of Representatives) to determine appropriations. Unilaterally, the President cannot make budgetary decisions or change funding guidelines. |
