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AAPT Joins Opposition to Federal Grant Changes

Nonprofits warn new certifications tied to executive orders could create legal and financial risk, disrupting essential services for communities nationwide.

The American Association of Physics Teachers, together with more than 1,300 nonprofit organizations nationwide has signed onto a national letter opposing the Trump Administration’s proposed changes to the federal System for Award Management (SAM) portal, the online system used to apply for and manage federal financial assistance. The proposal has generated significant public opposition, with more than 20,000 comments submitted against it ahead of the March 30 deadline. 

If implemented, the proposed certification requirements would affect organizations that receive grants, cooperative agreements, loans, insurance, and direct appropriations, creating new legal and financial risks that could disrupt essential services in communities across the country.

“Nonprofits frequently partner with the federal government to help deliver essential services to their communities. The changes to federal grant certifications proposed by the Trump Administration undermine this effective partnership and ultimately will harm the people and communities that rely on nonprofits and the services they provide,” said President and CEO, Diane Yentel. “Nonprofits with a strong track record of delivering federal programs may decide it is not worth the significant financial and legal risk, leaving communities without the organizations needed to deliver childcare, support for seniors and veterans, job training, food and shelter.” 

"Nonprofits rely on federal funding to provide critical services to and safeguard the civil and human rights of communities across the country, including millions of Black people," said Demetria McCain, Director of Policy at the Legal Defense Fund. "The Trump Administration's proposed changes would dramatically and needlessly threaten those protections by adding vague requirements that reference misleading federal guidance related to lawful diversity, equity, and inclusion programs. The proposal also tries to discourage services to immigrant communities and lawful activism and protest. The civil rights community must continue to speak up, submit public comments, and stop this effort to deter nonprofits from advancing their missions and serving our communities."

The proposed changes would require all applicants and recipients of federal financial assistance to sign new certifications under penalty of criminal and civil law. These certifications align with executive orders and U.S. Department of Justice guidance that mischaracterize lawful diversity, equity, and inclusion efforts. The proposal also introduces new certification requirements related to immigration and terrorism.

Nonprofits warn that the proposed changes are vague and complex, making it difficult for organizations to determine whether they are in compliance. The uncertainty exposes nonprofits to potential legal harassment and costly investigations, even when no wrongdoing has occurred. Organizations could be forced to divert staff time and resources away from community services in order to manage compliance risks. 

Ultimately, many nonprofits may determine that the legal and financial risks are too great, particularly when requirements lack clarity. If organizations withdraw from federal partnerships, communities could lose access to essential services, including civil rights counseling, delivered by trusted local nonprofits.

The national sign-on letter, which was led by the National Council of Nonprofits and the Legal Defense Fund, reflects broad concern across the nonprofit sector that the proposed changes could undermine longstanding partnerships between nonprofits and government that help deliver critical services efficiently and effectively. 

The National Council of Nonprofits urged nonprofits and stakeholders to submit public comments in opposition to the proposed changes to help ensure stability for nonprofits and the millions of people who rely on their services every day. To support participation, NCN published a comment guide with instructions for submitting a public comment.

For more information, read the proposed changes and supporting materials. 

Communities thrive when nonprofits succeed. For more than 30 years, the National Council of Nonprofits has mobilized the largest network of nonprofits in the United States to achieve transformative results. We champion, connect, and inform nonprofits across the country. Join our collective efforts to ensure a connected and powerful nonprofit community equipped to champion the public good. Learn more at www.councilofnonprofits.org.