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Navigating the Federal Grant Freeze: What Nonprofits Need to Know with DeaRonda Harrison

The recent federal grant freeze sent shockwaves through the nonprofit sector, leaving many organizations scrambling to understand its implications. If your nonprofit relies on federal grants, you may be wondering how this affects your funding, sustainability, and future planning.

In this episode of Missions to Movements, we’re joined by DeaRonda Harrison, CEO of June First Firm, to break down what this grant freeze means for nonprofits and how organizations can adapt their funding strategies to remain resilient.

What Is the Federal Grant Freeze and How Does It Impact Nonprofits?

On January 27, 2025, the Office of Management and Budget (OMB) issued a memo directing federal agencies to “temporarily pause all activities related to obligation or disbursement of all federal financial assistance.” This sweeping freeze affected funding tied to foreign aid, nonprofit programs, diversity, equity, and inclusion (DEI) initiatives, and environmental policies—but exempted programs like Medicare and Social Security.

Nonprofits relying on federal funding immediately felt the impact, and the nonprofit community responded swiftly. The National Council of Nonprofits, along with other advocacy groups, filed a lawsuit challenging the legality of the funding freeze. Shortly after, a federal judge issued a temporary restraining order, effectively halting the freeze’s implementation. The OMB has since rescinded the memo, but uncertainties remain as the situation evolves. (Read more from the National Council of Nonprofits)

With the legal landscape still shifting, nonprofits must remain vigilant and adapt their funding strategies proactively.

Inside the Nonprofit Trenches: What Organizations Are Facing

DeaRonda has been working directly with nonprofits navigating the immediate effects of the grant freeze, and she shares what the past few days have been like for them:

🛑 Biggest Concerns from Nonprofits Right Now:

• Uncertainty about pending grants—many organizations were mid-application or waiting for approvals when the freeze hit.
• Budget shortfalls—nonprofits that had allocated expected funds are scrambling for alternative sources.
• Confusion over next steps—should they pause applications, reapply, or look elsewhere?

🎧 Listen in as DeaRonda shares real stories from the nonprofits she’s working with and how they are adapting.

What Are the Options for Nonprofits That Were Counting on This Funding?

For organizations that were heavily dependent on federal funding, this situation has forced them to rethink their strategies. DeaRonda shares some creative pivots she’s seeing from clients, including:

• Shifting focus to private grants—many organizations are applying for foundation and corporate grants instead.
• Building stronger relationships with funders—having direct conversations with grantmakers to explore alternative funding options.
• Leveraging existing donors—using this moment to strengthen donor engagement and monthly giving programs.

✅ Pro Tip: June First Firm’s newsletter offers guidance on how to start conversations with funders, which is key during funding uncertainty.

Mid-Application? Waiting on Approval? Here’s What to Do Next

If your nonprofit was mid-application or waiting on approvals when the freeze was announced, what should you do now?

DeaRonda recommends:

• If your grant was frozen, check in with the funding agency to see if they are now accepting disbursement requests after the temporary restraining order was issued.
• If your application was in progress, assess whether it’s best to pause or adjust your strategy to seek other funding sources.
• If you’re starting a new grant application, consider shifting focus to private and corporate grants, which may be more stable in the current climate.

Private vs. Federal Grants: How to Pivot Your Grant Strategy

Many nonprofits assume that private grants aren’t as accessible as federal ones—but that’s not necessarily true.

DeaRonda breaks down the key differences between private and federal grants:

• Federal grants typically have higher award amounts but are more competitive and come with strict compliance requirements.
• Private foundation and corporate grants may be smaller per award, but they can be stacked and come with fewer restrictions.

🎧 In the episode, DeaRonda shares how her firm is helping nonprofits successfully pivot to private funding sources—and how you can do the same.

The Power of Monthly Giving During Funding Uncertainty

One of the biggest lessons from this situation? Nonprofits cannot rely solely on grants for sustainability.

This moment highlights why recurring revenue is so essential. Monthly giving programs provide:
✔️ Predictable revenue that offsets grant uncertainty.
✔️ More financial independence, reducing reliance on external funding.
✔️ Stronger donor relationships, increasing long-term retention.

📌 Pro Tip: Use this opportunity to talk about your monthly giving program in grant applications! Funders like to see diverse revenue streams, so highlight your growing base of sustained donors as a sign of financial health.

Stay Informed & Take Action

While the temporary restraining order on the grant freeze has provided relief, the situation is still evolving. Nonprofits should stay informed through reputable sources like the National Council of Nonprofits to track policy changes and funding updates.

🎧 Listen to the full episode with DeaRonda Harrison to get actionable strategies for navigating grant freezes and setting your nonprofit up for long-term funding success.

Resources & Links

• Explore LinkedIn’s incredible suite of resources and discounts for nonprofit teams here.
• The 2nd Annual Monthly Giving Summit is coming February 26th and 27th. Learn more and apply to be a speaker.
• My book, The Monthly Giving Mastermind, is here! Grab a copy here and learn my framework to build, grow, and sustain subscriptions for good.
• Join The Sustainers, my Slack community for nonprofit professionals growing and scaling a recurring giving program.