Press Contact: media@hispanicfederation.org
Nonprofit leaders urged the Office of Management and Budget to rescind proposed rules that would politicize congressionally appropriated federal funding, threaten programs designed to uplift vulnerable communities, and make it harder to serve people in need
WASHINGTON, D.C. – Hispanic Federation led over 150 nonprofit organizations to sign a letter opposing the Office of Management and Budget’s (OMB) proposed changes that would rewrite federal grant funding rules, making it harder for nonprofits to serve communities in need and fulfill their missions. Under the proposed rule, senior political appointees would review and approve individual grant awards, and every federally funded project would be required to align with White House policy priorities and Executive Orders – a significant departure from the nonpartisan, merit-based standards that have long governed federal grantmaking.
“This administration wants to decide whether to continue funding congressionally appropriated funds not based on the quality of work or community needs, but on political loyalty. The proposed rule allows political appointees to conduct a politically targeted review of every project. Our federal funds must continue to be handled by subject-matter experts who can direct federal tax dollars toward projects that best support communities in need. Nonprofits show up every day to serve families, seniors, children, and vulnerable communities regardless of who is in office. We call on OMB to rescind the proposed rule and allow federal grants to reach our nonprofits that serve communities in need across the country,” said Frankie Miranda, President and CEO of Hispanic Federation.
The proposal would also eliminate fixed-dollar award options and sharply cut reimbursement for indirect costs – the essential, often invisible expenses, like rent, technology, and administrative staff, that keep nonprofits running. Also, the rule would impose extreme free speech restrictions potentially forcing organizations to choose between civil liberties and constitutional rights or funding vulnerable communities.
The letter represents a wide array of social service providers, civil rights groups, health, and education institutions, and community-based organizations and was delivered to OMB during the public comment period.
The full text of the letter and list of signing organizations is available here.
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About Hispanic Federation
Hispanic Federation (HF) is a nonprofit membership and advocacy organization, founded in 1990, committed to empowering and advancing the Hispanic community, with a focus on low-income, marginalized, and immigrant Latine. With programs in 43 states and territories, HF’s focus areas include immigration, economic empowerment, civic engagement, disaster relief, philanthropy, education, health, and the environment. HF also maintains ongoing public education campaigns and meets the organizational development needs of its member agencies through grant-making and capacity-building assistance.
