DDF Files Comment Opposing OMB’s Plan to Politicize Federal Grant-Making Process
July 17, 2026
Democracy Defenders Fund and Platkin LLP warn that the proposed changes would create conflicting obligations and threaten funding for community organizations.
WASHINGTON, D.C.—Just weeks after a federal court forced the USDA to restore its $2.5 million grant, Heru Urban Farming & Garden filed a formal comment opposing a sweeping new Office of Management and Budget rule that would permanently bar organizations like it from receiving federal funds for serving historically disadvantaged communities.
The comment, submitted on behalf of HUFG by Democracy Defenders Fund and Platkin LLP on July 13, comes after the St. Louis-based nonprofit won a preliminary injunction on June 30 when a federal court ruled that the Trump administration unlawfully terminated its congressionally approved grant from the USDA’s Increasing Land, Capital, and Market Access program. OMB’s proposed revisions to federal financial assistance standards would codify the same policies that led to HUFG’s unlawful termination, effectively weaponizing the federal grant process against any recipient that promotes equity or inclusion.
At a time when 18.3 million U.S. households experience food insecurity — and nearly one in five households with children faces hunger — organizations like HUFG play an increasingly vital role in helping families access healthy, affordable food. The proposed OMB rule would create unnecessary barriers for these organizations, injecting uncertainty and placing additional legal and administrative burdens on mission-driven nonprofits that serve communities in need.
The proposed OMB rule would prohibit recipients from using their federal funds to “promote DEI or DEIA” activities. It would also allow federal agencies to terminate or suspend funding based on shifting political priorities, precisely the kind of arbitrary action that a federal court recently ruled was “likely contrary to statute.”
“There’s simply no evidence that shows the benefits of this proposed rule change outweighs the substantial burdens they would impose on organizations working to feed hungry families,” said Jonathan Barry-Blocker, senior policy counsel at Democracy Defenders Fund. “Federal funding should be administered according to law, not the president’s shifting political priorities. Organizations serving Americans in a time of great need should not have to guess whether their longstanding efforts to support underserved communities will jeopardize their funding.”
The legal comment argues that the proposed rule exceeds OMB’s authority, violates the First Amendment, is constitutionally vague, and is arbitrary and capricious.
Read the comment here.
# # #
Democracy Defenders Fund brings together a nonpartisan team to work with national, state and local allies across the country to defend in real-time the foundations of our democracy.
For media inquiries, contact press@democracydefenders.org.
