Democracy Endowment Sues Trump Over $200M in Frozen Funding

A foundation dedicated to developing democratic institutions around the world sued the Trump administration Wednesday for withholding $200 million in funding that was approved by congress. 

The National Endowment of Democracy (NED), a congressionally created non-governmental organization, accused the Trump administration of illegally impounding its funding and imperiling its mission.

“As a result of the Executive’s unlawful impoundment of the funds that Congress appropriated for the Endowment, the Endowment is experiencing a devastating cash flow crisis that jeopardizes its ability to fulfill its mission and its very existence, as well as that of its core institutes and grantees,” the lawsuit reads.

The endowment was mandated by the National Endowment for Democracy Act of 1983, which stipulates that the non-profit must receive annual grants through the Department of State. However, those grants have now been caught up in the Trump administration’s broad freeze on foreign assistance funding.

Already, the lack of funding is affecting pro-democracy NGOs in Southeast Asia, according to the Council on Foreign Relations. Domestically, however, the Trump administration withholding funding represents a major affront to Congress’ power of the purse and a breakdown in how the appropriations process typically works.

NED’s lawsuit adds to a growing number of lawsuits challenging the freeze as a violation of the Impoundment Control Act of 1974, which prevents presidents from withholding funds without congressional approval.