Diane Yentel, president and CEO of the National Council of Nonprofits, which represents more than 30,000 American nonprofits, said in a May 29 statement that the OMB proposal may also âprofoundly impactâ nonprofits partnering with the federal government in delivering services to communities across the U.S., such as in housing, health, education, food, shelter, and disaster recovery.Â
According to the New York Times, in the weeks before the OMB proposal emerged, the White House appeared to foreshadow its plans, citing a May memo that it obtained that instructed federal agencies to inventory grants given to âcertain nonprofit organizations.â Among the about four dozen organizations listed were the American Civil Liberties Union, the National Urban League, and other legal aid groups that conservatives have long criticized, the Times reported.
The proposal also specifically instructs agencies to ensure that federal awards are not used for âdiversity, equity, and inclusionâ (DEI) initiatives, and âgender ideology,â as the Trump Administration has limited its recognition of sex to which a person is assigned at birth.

