Federal Funding Should Support Communities, Not Political Agendas

Federal Funding Should Support Communities, Not Political Agendas Researcher Katie Edwards has dedicated her career to reducing violence among LGBTQ+ and Indigenous youth, building programs that help young people feel safe and supported. Josefina Navar, deputy director of HOPE Fair Housing (HOPE), works to help families across Illinois access safe and stable housing. Adam Odsess-Rubin helped found the National Queer Theater to amplify the voices of LGBTQ+ artists facing censorship abroad. These organizations, and countless others throughout the country, could soon risk losing the funding they need to deliver critical resources that millions of Americans rely on. On May 29, 2026, the U.S. Office of Management and Budget (OMB) and 40+ agencies proposed sweeping changes to overhaul the set of rules governing federal grants to nonprofits, state and local governments, and other grantees. If implemented, this proposal will unlawfully reshape how federal funding is awarded and administered, putting essential services at risk. “Families could lose access to early childhood education programs,” said Linda Morris, senior staff attorney in the ACLU Women’s Rights Project, “survivors of abuse could face greater barriers to support, researchers could lose funding for lifesaving scientific work, and health care providers could face new obstacles to delivering care.” Weaponizing Federal Grants for Trump's Political Agenda The proposed rule would give the Trump administration sweeping authority to approve, deny, or cut off funding to organizations based on the government’s political agenda, not community needs. This blatant power grab undermines longstanding civil rights protections and threatens to suppress viewpoints the government disagrees with by leveraging financial resources. In fact, the rule would impose unlawful restrictions on funding related to transgender people, gender-affirming care, addressing racial health disparities and reproductive health. It would also impose unlawful bans on diversity, equity, inclusion, and accessibility and so-called “gender ideology” that undermine civil rights and civil liberties.Individuals who rely on federally funded programs will be penalized for their views or their identity. It’s clear that this is a rule designed to lock up taxpayer funds that previously went to programs that supported all Americans and redistribute those funds to programs that politically align with the current administration’s priorities. Putting Vulnerable Communities and Critical Services at Risk If the proposed rule goes into effect, every single American could feel the impact of these haphazard funding bans. Children won’t receive high-quality education that Head Start previously would have been able to provide in their first language, survivors of domestic violence will face increased barriers in receiving essential shelter and services, Americans’ access to HIV treatment will be limited, and gender-affirming care will be harder to receive. The ripple effect will be undeniable. Any organization that receives federal funding will be faced with unnecessary red tape, added costs, and administrative burdens — adding significant financial risks that many may not be able to overcome. Essential services will be disrupted. Scientific research will be altered or halted. And viewpoints that don’t match the administration’s agenda will be suppressed. Disruptions to essential federal programs worsen inequality and have an outsized impact on households of color, immigrant families, people with disabilities, and LGBTQ+ individuals, who receive a disproportionate amount of the affected services and programs due to the ongoing systemic inequality and discrimination they face. Protecting Programs That Serve the Public The ACLU proudly represents many clients who would be negatively impacted by this proposed rule, including nonprofit organizations serving transgender and gender nonconforming people, researchers and scientists, community health centers, artists and arts organizations, educational programs, and other recipients of federal funding. We urge OMB and all participating federal agencies to withdraw the proposed rule in its entirety and preserve a federal grants system that is transparent, lawful, and focused on serving the public rather than advancing a political agenda.