Uncertainty for Illinois organizations as federal funding freeze looms under President Trump’s administration

CHICAGO (WLS) — The uncertainty surrounding the status of federal grants and loans has raised concerns among Illinois nonprofits that heavily rely on this financial support.

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Shortly after indicating a broad freeze on federal funding, the Office of Management and Budget retracted its initial memorandum in less than 48 hours. Despite this reversal, the Trump administration asserts its determination to proceed with the freeze, leading to further bewilderment and instability for the millions of Americans dependent on federal programs.

“Every day, our focus is on prioritizing America and striving to maximize the value of each taxpayer dollar for the benefit of our citizens,” stated President Donald Trump.

On Tuesday, a federal judge temporarily blocked the freeze. Separately, Illinois joined 21 other states and Washington D.C. to sue the Trump administration. In a hearing in that case, another federal judge stopped short of entering the temporary restraining order because of the rapidly changing circumstances.

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Harold Krent, a professor at Chicago-Kent College of Law said he expects the cases to continue despite the Trump administration’s rescission.

“Because you don’t know what’s going to happen a week from today, three weeks from today, or three months,” Krent said. “And certainly, in another context, the Trump administration may decide to impound funds that have been already allocated by Congress and cause the same kind of havoc that we’ve seen over the last couple of days.”

Meanwhile, organizations that rely on federal funding in Illinois are paying close attention to President Trump’s every move.

La Casa Norte serves youth and families confronting homelessness. CEO Jose Muñoz said for about 24 hours they could not draw down on any federal funds that support their programs.

“You can rescind the order, but you can’t rescind the chaos that was created in the last 24 hours, not just for our organization, but for the whole system,” Muñoz said.

Muñoz said the impact of a potential funding freeze absolutely trickles down to average people, many of whom rely on organizations like La Casa Norte to put food on the table.

“What we don’t know is, what happens next?” Muñoz said. “Is it rescinded temporarily? Is it rescinded for the next few months? What are the long-term impacts on the social safety net? We don’t know.”