
The Trump administration’s decision this week to freeze federal funding has sparked legal battles, uncertainty and panic among many state governments and nonprofit organizations. The freeze, announced with little warning, was set to take effect this week, halting grants and loans while agencies conduct an ideological review of federal spending. However, a federal judge issued an injunction delaying its implementation until Monday, giving states and organizations a brief reprieve but no clear answers about what comes next.
The administration framed the pause as a necessary step to ensure taxpayer dollars are not funding programs it considers inconsistent with its policies including those related to immigration, LGBTQ+ rights and environmental regulations. But the lack of clear guidance has left agencies scrambling to determine which programs will be affected and for how long.
Faith-based nonprofits that provide humanitarian aid are among the most vulnerable. Organizations like World Relief, which partners with the U.S. government to assist refugees and provide essential care to millions around the world, have been forced to prepare for immediate financial shortfalls and service disruptions if the freeze moves forward.
“We anticipated [the refugee resettlement program] would be shut down going forward and it was, but on Friday we received word that actually we won’t be reimbursed for the people who have arrived in the past 90 days,” Matthew Soerens, Vice President of Advocacy and Policy at World Relief, told RELEVANT. “Effectively, we’ve got to figure out—if they don’t change their minds and we’re pleading with them to do so—how to cover rent for about 4,000 individuals that we’ve resettled around the country in the last 90 days.”
The move has already drawn legal challenges from multiple states including New York, where officials argue the freeze is unconstitutional and unlawfully disrupts funding already approved by Congress. With the court-ordered delay in place until Monday, nonprofits and state agencies remain in limbo, uncertain whether their funding will be reinstated or permanently cut off.
What Is the Spending Freeze?
The freeze, announced via a memo from the Office of Management and Budget, directed federal agencies to halt all grants and loans while reviewing their alignment with Trump’s executive orders. The administration framed the move as a necessary step to eliminate spending on progressive policies, including funding that could be connected to LGBTQ+ rights or abortion. However, the vaguely worded directive left officials scrambling to determine exactly what programs and organizations were affected, leading to widespread uncertainty.
A 51-page spreadsheet was sent to federal agencies listing various programs under review, from tribal workforce development to special education. Officials were given a strict Feb. 7 deadline to respond to ideological questions about each program, and funds that didn’t align with the administration’s priorities were to be paused indefinitely.
The decision triggered a swift backlash. Multiple states have already filed lawsuits, and New York Attorney General Letitia James called the move “reckless, dangerous, illegal and unconstitutional.” A federal judge has temporarily blocked enforcement of the order until Monday, but many nonprofits are still reeling from the immediate effects, unsure if funding will be restored or delayed indefinitely.
The Impact on Christian Nonprofits
While the freeze disrupted funding across multiple sectors, faith-based organizations that rely on government grants have been among the hardest hit. Soerens explained that World Relief was informed that it must immediately cease all programming tied to federal resettlement funding.
As a result, the organization is now unable to access funds that cover essentials like rent, food and employment assistance for newly arrived refugees. Even more alarming, World Relief has been told it will not be reimbursed for services provided over the past 90 days, leaving thousands of refugees at risk.
“We’re scrambling,” Soerens said. “We received this notice to immediately stop work on any programming funded by a grant, but we just don’t have enough details to know what the future of these programs will look like.”
The ripple effects extend beyond finances. Thousands of refugees who were in the process of resettlement—including persecuted Christians fleeing religious oppression—have had their travel plans canceled at the last minute.
“My colleagues have had all sorts of really hard conversations with people in the last week, informing them that their family who had travel dates confirmed are not coming,” Soerens said. “That’s incredibly hard, especially for those who have been waiting for 10, 15, even 20 years.”
For now, organizations like World Relief are left filling the gaps with private donations and church partnerships. Soerens hopes that amid the political and legal turmoil, Christians will recognize the real-world consequences of these decisions—especially for the persecuted and displaced.
“If the government isn’t going to do this, should the church do it? Absolutely,” Soerens said. “Now is the time for the church to show that we are who we say we are.”