The Impact of the Federal Grant Freeze on Nonprofit Organizations: A Focus on New Hope Oklahoma

By: Aubrey Hovenga

According to The New York Times, in late January 2025, the Trump administration announced a temporary freeze on federal grants and financial assistance, aiming to reassess funding allocations in line with new policy directives. This decision has had widespread implications for nonprofit organizations across the nation, including those in Oklahoma.

The funding freeze has led to significant disruptions among various nonprofits. Organizations that rely heavily on federal grants have reported challenges such as suspended services, staff layoffs, and a pause in programming. For instance, numerous NGOs (Non-governmental organizations) monitoring human rights in China have been forced to suspend operations and lay off staff due to the aid freeze. 

In Oklahoma, nonprofits play a crucial role in supporting vulnerable populations. Organizations such as New Hope Oklahoma, based in Tulsa, are dedicated to breaking the cycle of generational incarceration by supporting children with incarcerated parents. They provide transportation, meal assistance, before and after school programming, and summer camps for these children.

Notably, many of New Hope’s resources are sponsored by said grants. To further investigate the implications of this freeze, I conducted an interview with New Hope Executive Director, Danielle Hovenga.

I began the interview with the following question: What was the immediate response in terms of staffing upon receiving notice of the freeze?

Hovenga, who oversees staffing, explained that a funding cut as significant as the one imposed would inevitably lead to layoffs in some areas of the organization.

“I encouraged staff to keep working until we knew what this unexpected directive meant,” said Hovenga.

As expected, New Hope faced uncertainty. The next challenge was addressing public concerns. My next question stemmed from this issue: As the head of a nonprofit, how did you respond to public perception?

“On the national side of things, I kept my eyes and ears on the news and was grateful to hear of collective and widespread confusion, seemingly lightspeed lawsuits filed, and a federal judge ultimately halting the freeze through the following Monday,” said Hovenga.

After all the panic Hovenga endured that day, it was announced that the funding freeze had been rescinded. Despite her efforts, the time and energy she and her team had invested, the situation seemed to be dismissed without acknowledgment. Naturally, I was curious: How did you and your staff react upon learning that the freeze had been lifted?

“To be honest, while we felt relief, we also felt so angry to have had this be dismissed so quickly with no acknowledgement from the government of the stress and panic it caused for the agencies that were impacted and the millions of Americans those agencies serve,” said Hovenga.

In conclusion, the federal grant freeze imposed by the Trump administration posed significant challenges for nonprofit organizations, jeopardizing their ability to provide essential services to the vulnerable communities that they’ve worked so diligently to provide. Although the administration dismissed the freeze shortly after its implementation, the initial funding delays and uncertainty led many nonprofits to face the idea of staffing cuts, program reductions, and even potential closures. 

This situation highlighted the need for alternative funding sources and policy advocacy to ensure financial stability. The incident shows how abrupt policy changes can impact nonprofits and the communities they serve.

Here is a link to the New Hope Oklahoma website, https://newhopeoklahoma.org/.