The National Endowment for Democracy, a nonprofit organization that has traditionally received bipartisan support for its global democracy promotion efforts, has filed a lawsuit against the U.S. government and specific cabinet officials over the withholding of $239 million in congressional appropriations.
The lawsuit was filed on Wednesday afternoon after members of the organization's board, including both current and former lawmakers from the Republican and Democratic parties, reported difficulties in obtaining the resumption of funding from the State Department. The group is also seeking a judicial order to prevent any future withholding of funds appropriated by Congress.
Due to the funding freeze, approximately 75 percent of the endowment's staff have been placed on unpaid leave, affecting around 1,800 grant projects that have not received funding since late January, following an executive order signed by President Trump that halted all foreign aid.
In its legal filing with the Federal District Court for the District of Columbia, the organization contends that the funds it receives from Congress do not constitute foreign aid and are not subject to the management of the State Department or any other executive agency. Board members argue that the withholding of these funds is unlawful.
Peter Roskam, chair of the nonprofit and a former Republican congressman from Illinois, indicated that the board had voted to pursue legal action as a last resort. He expressed hope that the situation was due to an oversight rather than a policy decision, though he acknowledged the gravity of the circumstances.
The endowment’s situation reflects broader changes in U.S. foreign policy under the Trump administration, which appears to be shifting away from promoting democracy and human rights in favor of a more nationalistic and transactional approach.
Recent comments by senior administration officials have echoed critiques typically made by progressive critics regarding U.S. foreign policy, labeling efforts to extend influence abroad as “nation-building” and attempts at “regime change.”
Requests for comment from the White House, State Department, and Justice Department have gone unanswered. Additionally, Elon Musk, an advisor to the Trump administration, has publicly criticized the National Endowment for Democracy, labeling it as "RIFE with CORRUPTION" and calling for its dissolution.
Representative Elise Stefanik, selected by Trump for an ambassadorial position at the United Nations, previously served on the board of the National Endowment for Democracy, while Senator Todd Young remains a board member.
The administration's "America First" policy has drawn scrutiny for its implications on democratic nations, particularly in the context of high tariffs imposed on allies, aggressive territorial claims, and a significant reduction in U.S. foreign aid.
The National Endowment for Democracy funds projects aimed at promoting democracy, free speech, and religious freedoms across more than 100 countries, including those considered adversaries by both the Trump and Biden administrations. These projects include efforts to develop software for accessing banned websites and support independent journalism.
One affected organization, China Labor Watch, has reported a loss of expected funding and has had to reduce its workforce as a result of the funding freeze.
Former Republican senator Mel Martinez criticized the administration for denying funding to organizations supporting dissidents abroad, stating that it undermines the efforts of politically active exiles from countries like Cuba and Venezuela.
The lawsuit highlights the risks posed by the funding freeze to individuals operating in authoritarian contexts, emphasizing how such disruptions may expose them to greater dangers.
Established in 1983 following a speech by President Ronald Reagan advocating for democracy, the endowment provides funding to several affiliated nonprofits, including the International Republican Institute and the National Democratic Institute, both of which are also experiencing program cuts due to the funding halt.
Legal experts have noted that the endowment's case shares similarities with other lawsuits against the Trump administration for similarly freezing funds, asserting that withholding these appropriated funds is a violation of clear congressional directives.