Illinois organizations left in limbo amid possible federal funding freeze by President Donald 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.

ABC7 Chicago is now streaming 24/7. Click here to watch

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.

RELATED | Here’s how a freeze on federal grants and loans could impact Chicago and Illinois

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.

What we don’t know is, what happens next?… What are the long-term impacts on the social safety net?

Jose Muñoz, La Casa Norte CEO

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.”

Copyright © 2025 WLS-TV. All Rights Reserved.

You May Also Like
Tina Fey and Amy Poehler poke fun at Meghan Markle with barbed comment about her recipes

Tina Fey and Amy Poehler make jokes about Meghan Markle by making sharp comments about her cooking.

Tina Fey and Amy Poehler made jokes about Meghan Markle at a…
Jeff Bezos and Lauren Sanchez 'are forced to MOVE Venice wedding party venue due to protests and US involvement in Iran war'

Jeff Bezos and Lauren Sanchez relocate wedding celebration in Venice due to protests and concerns over US involvement in Iran conflict

Jeff Bezos, the CEO of Amazon, and his soon-to-be wife, Lauren Sanchez,…
The most evil Nigerian love scam ever that ended with a disabled woman taking 'horrifying' selfies that will scar her daughter for life

“Disturbing Nigerian Love Scam: Disabled Woman Forced to Take Traumatizing Selfies”

As I turned over in bed, a pain shot down my side. …
Will There Be a ‘Godfather of Harlem’ Season 5?

Is Season 5 of ‘Godfather of Harlem’ Expected to Be Released?

Fans had to wait a long time for the fourth season of…
Chicago, Frankfort teens compete in 2025 Jimmy Awards Monday night, representing Illinois, Broadway in Chicago

Illinois Teens Represent Chicago and Frankfort at 2025 Jimmy Awards in Broadway Competition

The Jimmy Awards took place in New York on Monday night, where…
Ellen DeGeneres slammed by comic icon who says 'creepy and weird' talk-show star was 'not nice' to them

Comic legend criticizes Ellen DeGeneres for being unfriendly and strange on her talk show

A veteran comedian is weighing in on their interactions with Ellen DeGeneres…
Panic in NYC as failed rapper socialist Zohran Mamdani emerges as front-runner in mayor's race

Fear spreading in New York City as former rapper turned socialist candidate Zohran Mamdani leads the mayoral race

A failed rapper and Democratic socialist has emerged as the frontrunner in…
I almost died getting a tattoo after artist made dangerous mistake... here is my warning to others

A cautionary tale: How a risky mistake during my tattoo almost led to disaster

A woman who wanted to honor her late brother by getting a…
Mick Ralphs, Guitarist for Mott the Hoople and Bad Company, Passes Away

Guitarist Mick Ralphs, known for Mott the Hoople and Bad Company, has died

Mick Ralphs, the British rock guitarist, passed away on June 23, 2025,…
Firefighter's body recovered from vacation getaway after weekend kayaking accident

Firefighter’s body found at holiday retreat following kayaking incident over the weekend

NEWYou can now listen to Fox News articles! Texas deputies found the…
Alaska Man Monday - Moose Births, Martial Arts, and a New Shootin' Iron

“Exploring Alaska’s Rich Fisheries on Man Monday in Homer”

Here’s how those two days, so typically Alaskan vacation days, went. Day…
'Sleazebags': President Trump Hilariously Torches Fake News for Their Reports About Iran Bombings

President Trump humorously criticizes fake news for their coverage of Iran bombings

On his Truth Social account on Monday, the president responded to reports…