By James Bush, DANA Public Policy & Advocacy Manager

Last Friday, President Trump announced a “pocket rescission,” pulling back nearly $1 billion in previously appropriated funding across several federal programs, which could have wide-ranging impacts for nonprofits. 

The announcement identifies specific funding cuts to several critical areas where nonprofits do essential work. The largest clawback included $567 million in Health and Human Services (HHS) funding for immigration services, with additional rescissions affecting programs for foreign students, climate change, minority business development, LGBTQ groups, and DEI-related initiatives. The proposed rescissions also include funding associated with Department of Justice community-relations work, Housing and Urban Development housing counseling, and HHS research and minority-health programs. 

The action is legally questionable and could be challenged in court. The White House claimed authority under the Impoundment Control Act, which the administration has used in the past to claw back other funds. DANA is continuing to monitor this situation and is in contact with our national partners about next steps. 

DANA is seeking to understand what this could mean on the ground in Delaware. If your organization has received notice of a loss of funding, anticipates a funding disruption, or is concerned about effects on the people you serve, please contact DANA CEO Melissa Hopkins at [email protected].