UPDATE AS OF JANUARY 29TH:

As a result of fierce cross-sector national, regional, and local advocacy, as of Wednesday, January 29th, the White House Office of Management and Budget rescinded the federal aid freeze.

What We Know:

The rescinding of the freeze means funding and previously awarded grants can move forward. While this is a positive development, we continue to monitor the situation to help ensure stable, long-term support for arts and culture organizations nationwide. Please continue to contact your congressional representatives through this action alert to impress upon them the importance of protecting the federal funding that supports the essential work of New Jersey's non-profit sector.

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BACKGROUND
On January 27, 2025, the White House issued a directive temporarily halting Congressionally approved and enacted spending. The directive states: "Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders."

While the directive includes a vague exemption for "assistance provided directly to individuals," the lack of clarity around its scope raises concerns. If this directive remains in place, it will create significant challenges for New Jersey nonprofit organizations and the communities they serve. 

We want to bring to your attention the potential impact this pause could have on nonprofit organizations and the constituents they serve throughout the state. The New Jersey State Council on the Arts, which relies on NEA support for 80% of its operational budget, will be directly affected, as will its grantees. Additionally, 57 nonprofit organizations in New Jersey with FY24 and/or FY25 grants from the NEA are at risk of losing $2,729,200. Since these grants are reimbursable, organizations are currently incurring expenses for ongoing programs with the expectation of federal support—support that has now been frozen.

This situation demands urgent clarity and decisive action to prevent disruptions to vital services and programs.