National Endowment for Democracy sues Trump administration over $240 million funding freeze

The National Endowment for Democracy (NED) has filed a lawsuit against the Trump administration for withholding nearly $240 million in congressionally approved funding, severely impacting its operations and forcing it to furlough 75% of its staff. The lawsuit, initiated in federal court, argues that the funding is essential for supporting democratic initiatives globally and claims the withholding of these funds is illegal under the Impoundment Control Act of 1974. NED officials, including Board Chair Peter Roskam, emphasize that the lack of funding endangers their mission and undermines American interests abroad. The lawsuit names various government officials and agencies, including the State and Treasury departments, and asserts that these funds are not classified as foreign aid, which would fall under the executive branch's purview. The situation reflects broader tensions regarding the Trump administration's foreign policy direction, which has shifted away from supporting democracy and human rights initiatives. NED's ongoing cash flow crisis raises concerns about the future of numerous pro-democracy projects and organizations relying on its support.