Gov. Affairs | Issue 26 | February 19, 2026

Published February 19, 2026 - This content will be updated as developments unfold.

Latest Developments:

Woonasquatucket River Watershed Council et al. v. U.S. Department of Agriculture et al.

  • What it’s about: Nonprofits challenged a broad federal freeze on already-approved IRA and infrastructure funds, arguing agencies can’t withhold money Congress has appropriated.

  • What’s happened: A federal district court issued a nationwide injunction ordering agencies to resume releasing the frozen funds.

  • What’s happening now: The federal government has appealed, but the injunction remains in effect, so funding is still supposed to flow while the appeal is pending.

Read: First Circuit Hears Case Challenging Trump Administration’s Attempt to Freeze Certain Federal Funds for Nonprofits

National Council of Nonprofits et al. v. Office of Management and Budget

  • What it’s about: Challenges OMB-driven delays and administrative barriers that slow or block federal grant disbursement, even after funds are authorized.

  • What’s happened: Nonprofits argue these delays violate federal law and undermine nonprofits’ ability to plan and deliver services.

  • What’s happening now: The case is moving through the courts and could set limits on OMB’s authority to delay or condition nonprofit funding.

Read: D.C. Circuit Hears Case Challenging Trump Administration’s Attempt to Freeze Nationwide Federal Funding | National Council of Nonprofits

Resources:

 
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