American Foundations Mobilise Against Trump-Era Earth Day Funding Restrictions
The political climate right now is uncertain for funders. If you would like to discuss safe routes
As Earth Day 2025 approaches, American foundations are confronting unprecedented funding restrictions and political threats from the Trump administration. Actions targeting environmental nonprofits, slashing USAID programs, and freezing climate grants have prompted a swift and strategic response from the philanthropic sector. Here’s how foundations are mobilising to defend democracy, global health, and climate resilience.
Trump Uses Earth Day to Target Nonprofits and Climate Funding
In a series of alarming developments, the Trump administration has:
Proposed executive orders to revoke the tax-exempt status of environmental nonprofits critical of federal policies.
Executed sweeping USAID funding cuts to global health and climate initiatives.
Attempted to freeze infrastructure and climate-related grants, although these actions have been legally challenged and partially overturned.
These aggressive manoeuvres coincide with Earth Day 2025, sending a chilling message to organisations on the frontlines of climate action and democracy defence.
The Foundation Leaders Stepping Up, Resisting Funding Cuts and Political Pressure
Major foundations, including the MacArthur Foundation, are responding by ramping up support for:
Climate justice organisations under political threat.
Legal defence funds protecting nonprofits from tax-exempt status revocations.
Rapid-response grantmaking to sustain global health and development initiatives affected by USAID cuts.
Beyond financial support, foundations are actively engaging in public advocacy to reaffirm the sector’s independence and the critical role of civil society in a healthy democracy.
Federal Courts Push Back on Grant Freezes
In a significant win for the sector, federal judges have ruled against the administration’s efforts to freeze congressionally appropriated climate and infrastructure funds. Legal interventions are providing a crucial firewall, but foundations recognise that court victories alone aren’t enough—they’re investing in broader systemic resilience.
A New Playbook for Strategic Philanthropy in the Trump Era
Forward-thinking philanthropy is now characterised by:
Flexible, unrestricted funding to organisations facing rapid political threats.
Collaborative legal strategies to protect nonprofit status and funding streams.
Narrative change campaigns to highlight the importance of environmental and global health initiatives.
Foundations are also exploring cross-sector alliances with businesses and international partners to amplify their impact and hedge against domestic political volatility.
Earth Day 2025 marks more than just a celebration of environmental stewardship—it stands as a battleground for the future of philanthropy, climate action, and democratic resilience. As the Trump administration intensifies its attacks, American foundations are not retreating—they are innovating, collaborating, and fighting back.
As funding regulations shift, ensuring the continuity and compliance of impactful grantmaking is crucial. If your foundation is considering strategies for future grant cycles, particularly for international, climate, or DEI initiatives, we can provide safe alternative routes for grant making.
We’re happy to have a confidential chat about how how we can help you figure out a path forward during these turbulent times.
