Nonprofit organizations, cities nationwide challenge Trump administration’s federal funding freeze

CHARLESTON, S.C. — Today nonprofit organizations and cities from across the country filed suit in federal court to stop the Trump administration’s freeze on federal funding for critical programs, ranging from energy efficient affordable housing to air pollution monitoring to food access for communities and support for local farmers.

These groups were all selected as partners to move forward important Congressional priorities to benefit their communities and the nation. But the illegal ongoing federal funding freeze has placed them in financial limbo and forced them to make impossible choices.

The Southern Environmental Law Center in partnership with the Public Rights Project filed suit in the U.S. District Court for the District of South Carolina, Charleston Division, on behalf of 11 nonprofit organizations and six cities. Many of the grants impacted by the chaos and uncertainty of the funding freeze support projects that address health, environmental, agricultural and climate challenges in communities facing disproportionate pollution and environmental harms.

These binding federal grant agreements allow cities and nonprofit organizations to operate and carry out their programs — often filling the critical gaps where federal, state and local resources fall short — and many of the grants are for reimbursable expenses, meaning that the cities and organizations perform work according to the terms of their agreements and then submit a request for reimbursement.

The federal funding freeze is disrupting the cities and nonprofits’ work, including developing energy-efficient affordable housing and weatherizing and retrofitting homes in North Charleston, SC; a training program to prepare young adults for jobs in the water and solid waste industries in Baltimore, MD; expanding community air monitoring and health resources in north Mecklenburg County, NC; helping New Haven, CT residents transition to efficient heat pumps that reduce heating costs and air pollution; improving soil health while increasing revenue on working farms in Virginia and the Chesapeake Bay watershed; providing support for family farmers and rural communities; and increasing access to safe, affordable, healthy food across the country.

“When Congress decided it was time to invest in American communities, infrastructure, and innovation around the country, these groups stepped up,” said Kym Meyer, SELC’s Litigation Director. “The plaintiffs in this case won highly competitive grants because of the excellent projects they put forward, and the government should honor the commitments it made to these hardworking local organizations dedicated to helping their communities. This chaotic federal funding freeze is destroying their ability to do important work to create jobs and improve lives.”

“The Sustainability Institute is honored to have been selected by and under a binding agreement with the federal government to deliver critically-needed affordable housing, weatherization, and residential retrofits to homes in North Charleston,” said Bryan Cordell, Executive Director of the Sustainability Institute. “With community members, we, the City of North Charleston, and our project partners have already invested thousands of hours in making this project a reality. Continued freezes and disruptions to our work would be catastrophic to the project and would be equivalent to the government turning its back on the promised housing, jobs, and other economic, environmental and social impacts that are set to be delivered. We can’t allow that type of failure to occur.”

“This is another alarming example of federal government overreach,” said Jill Habig, Public Rights Project founder and CEO. “The executive branch has no legal authority to freeze funding approved by Congress. This reckless decision directly harms communities by preventing access to home energy upgrades that lower utility bills and limiting efforts to reduce extreme heat in urban areas. We will not stand by while abuses of power threaten progress.” 

“These funds represent a promise we’ve made to the communities of north Mecklenburg County,” said Jeffrey Robbins, Executive Director of CleanAIRE NC. “These communities have partnered with us, shared their stories, and are now relying on us for critical services and information about the air they breathe. Even a temporary disruption to this vital work jeopardizes our ability to fulfill the commitments we’ve made.”

“Pasa has spent decades building trust, delivering on our promises, and standing shoulder-to-shoulder with the farmers we serve,” said Pasa Sustainable Agriculture Executive Director, Hannah Smith-Brubaker. “This legal challenge is not just about us — it’s about every farmer, every community, and every promise that should never have been broken. We are not backing down; we are not walking away. We are fighting because the stakes are too high, the consequences too great, and the cause too just.”

“The chaos in Washington is killing jobs, threatening local investments, and stalling community-based projects, many of which already have shovels in the ground,” said Columbus City Attorney Zach Klein. “This extreme approach isn’t efficient or even effective. Rather, it’s simply undermining programs and harming the communities that stand to benefit from them, which in this instance is a historically Black Columbus neighborhood. In Columbus, neighborhoods targeted for tree planting were data driven — the areas selected lacked trees compared to other parts of town. Yet DOGE algorithms seem to have haphazardly targeted this important initiative that will lead to better health outcomes, air quality and home values for our residents simply because it was a historically Black neighborhood.”

“New Haven is committed to tackling the challenge of climate change head on and building a greener, healthier, and more resilient city,” said New Haven Mayor Justin Elicker. “Contrary to President Trump’s executive order, the way we ‘Unleash American Energy’ is by leveraging America’s green energy — solar, wind, geothermal — which is better for both our pocketbooks and our climate. Over $30 million in U.S. EPA grants were awarded and obligated by the federal government to the City of New Haven and our partners through a competitive and rigorous application process for critically important initiatives and projects, and we expect the federal government to make good on its obligations.”

“For more than two-hundred years, local, state, and federal governments have reliably worked together to implement programs that benefit people all over America,” said Wally Dietz, Director of Law for the Metropolitan Government of Nashville and Davidson County. “Metro Nashville filed this suit because the constitutional separation of powers must be maintained. No President, much less a non-federal employee at a fictional agency, has the authority to freeze funds appropriated by Congress. This lawsuit asks that the federal grant funding approved by Congress and awarded by the U.S. Department of Transportation for projects in Nashville to connect our residents, make moving through our city easier, and our roadways safer be delivered to Nashville, as promised.”