FROM OUR NATIONAL URBAN LEAGUE:

NEW ADMINISTRATION’S DENIAL OF FUNDS FOR ESSENTIAL PROGRAMS AND SERVICES "RECKLESS AND MISGUIDED"

Unconstitutional Directive Could Trigger Recession, Mass Layoffs and Human Suffering 

NEW YORK (January 29, 2025) — National Urban League President and CEO Marc H. Morial today condemned the Trump administration’s illegal order denying essential federal funds, risking the nation’s economic stability in a misguided effort to stifle diversity, equity and inclusion.

"The administration’s directive calling for a 'pause' on all federal financial assistance is a cold, callous, and unprecedented action that will have devastating consequences for millions of Americans," Morial said. "It demonstrates a blatant disregard for the well-being of families, students, small business owners, farmers, veterans and other everyday Americans who depend on the federal funding to survive and thrive."

Federal assistance is a vital lifeline for state and local governments, faith-based institutions, and nonprofits – entities who provide essential services that keep our communities across the country strong and resilient. This illegal pause will disrupt critical programs, leaving millions without access to the support and services they need to live with dignity and stability:

• Millions of families will lose access to vital services provided by WIC, SNAP, and TANF.

• Millions of students in Head Start, grade schools, and colleges will lose access to classroom funding, school resources, federal loans, and Pell Grants.

• Millions of farmers and small-business owners will lose access to federal grants and loans that sustain their operations.

• Millions of local firefighters and public safety officials will lose federal grants and resources needed to protect their communities.

• Millions of veterans will lose access to VA mortgages and loans, healthcare, and suicide prevention services.

The ramifications of this pause extend far beyond these immediate losses. Nonprofits, including the National Urban League, will face unnecessary challenges to continue providing life-changing services to the millions of people we serve each year.   Our network of over 90 affiliates help advance education, jobs, entrepreneurship, housing, health, and justice, in over 300 communities nationwide. Over the past decade the National Urban League has:

• Helped 246,000 people find new jobs

• Helped 3 million people, including adults, receive supplemental education services

• Helped 21,000 people purchase a new home

• Helped 8.3 million people access healthcare services

"The Trump administration’s reckless action has already stirred widespread chaos and may cause recessionary impacts such as increased poverty, job losses, and economic stagnation, grinding the progress of Main Street America to a halt," Morial said. "This is not a blueprint to 'Make America Great Again.' This is not putting 'America First.' This is leaving millions of Americans behind." 

Morial called on the administration to immediately rescind the economically devastating directive, and to restore federal assistance to the millions of Americans who depend on it. 

"We are committed to standing alongside our allies in government and civil society, including those Attorneys General who have taken swift legal action to challenge this mandate in court," he said. "Their leadership is critical in defending the integrity of tax-payer funded programs and ensuring that resources reach the communities that rely on them without illegal and politically motivated interference from this administration."