Trump signed two executive orders Monday taking aim at Diversity, Equity and Inclusion (DEI) initiatives in the federal government. (AP Photo/Matt Rourke)
"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, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal," the memo reads.
TRUMP'S FEDERAL DEI PURGE PUTS HUNDREDS ON LEAVE, NIXES $420M IN CONTRACTS
The pause takes effect at 5 p.m. ET on Tuesday.
The lawsuit argues that the parties will suffer harm as a result of the federal aid freeze given their reliance on federal funding.
A handful of non-profit organizations and health associations, including an LGBTQ+ advocacy group, filed a lawsuit Tuesday over the Trump administration's directive to freeze federal aid. (AP/Mark Schiefelbein)
Diane Yentel, President & CEO of the National Council of Nonprofits called the directive a "reckless action" by the Trump administration that would prove to be "catastrophic for nonprofit organizations and the people and communities they serve."
"From pausing research on cures for childhood cancer to halting housing and food assistance, shuttering domestic violence and homeless shelters, and closing suicide hotlines, the impact of even a short pause in funding could be devastating and cost lives," Yentel said in a statement provided to Fox News Digital. "This order must be halted immediately before such avoidable harm is done."
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Fox News Digital reached out to the White House for comment.
The memo explained that out of the $10 trillion spent by the federal government in fiscal year 2024, $3 trillion of that total was allocated to "federal financial assistance, such as grants and loans."
Vaeth sent the memo to all heads of executive departments and agencies.
Trump also signed two executive orders Monday taking aim at Diversity, Equity and Inclusion (DEI) initiatives in the federal government.
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The orders, titled "Prioritizing Military Excellence and Readiness" and "Restoring America's Fighting Force," should be in the process of being implemented by Defense Secretary Pete Hegseth and the secretary of Homeland Security within 30 days.
Fox News Digital's Emma Colton and Elizabeth Pritchett contributed to this report.
Haley Chi-Sing is a Writer for Fox News Digital. You can reach her at @haleychising on X.
https://www.foxnews.com/politics/non-profits-health-lgbtq-advocacy-groups-sue-trump-admin-over-federal-aid-freeze