The National Endowment for Democracy (NED), a nonprofit organization that has received bipartisan support for promoting democracy abroad, is taking legal action against the U.S. government and members of the cabinet for withholding $239 million in congressional funds.

The NED’s board, which includes current and former Republican and Democratic politicians, decided to file a lawsuit on Wednesday as a last resort after failing to persuade the State Department to resume the release of the funds.

As a result of the funding freeze, the organization has had to place approximately 75% of its staff on unpaid leave, and around 1,200 grant recipients have not received any funding for their projects since late January when President Trump signed an executive order freezing foreign aid.

In the lawsuit, filed in Federal District Court for the District of Columbia, the NED argues that its funds are not considered foreign aid and do not fall under the jurisdiction of the State Department or any other executive branch agency. Withholding the funding, according to the board members, is against the law.

Peter Roskom, a former Republican congressman from Illinois who chairs the nonprofit, stated that the board unanimously decided to pursue legal action. He expressed hope that the withholding of funds was simply an oversight and not a deliberate act.

The lawsuit also serves as a symbol of the significant shift in foreign policy taking place in the second Trump administration. The president aims to redirect U.S. foreign policy away from promoting democracy and human rights abroad and towards a more transactional and nationalistic approach.

Some senior administration officials have adopted language similar to that used by progressive critics of the U.S. government, criticizing American projects that seek to extend influence abroad as “nation-building” and attempts at “regime change.” This has raised concerns about the implications of the funding freeze.

Elon Musk, a billionaire adviser to Trump, posted scathing criticism of the NED online, calling it “RIFE with CORRUPTION” and suggesting that it should be dissolved. Musk has also been involved in dismantling the U.S. Agency for International Development.

Representative Elise Stefanik, a New York Republican who is Trump’s pick for ambassador to the United Nations, served on the NED’s board until she had to step down for Senate confirmation for her new role. Senator Todd Young, Republican of Indiana, is currently on the board.

The NED grants primarily focus on promoting democracy, free speech, and religious freedoms in more than 100 countries and territories, including those considered rivals or adversaries by previous administrations.

Mel Martinez, a former Republican senator from Florida, criticized the Trump administration’s reluctance to fund organizations that support overseas dissidents, calling it an affront to exiles from countries like Cuba, Nicaragua, and Venezuela.

Authoritarian governments, including China and Russia, have consistently denounced the work of the NED over the years.

The NED traces its origins back to a speech by President Ronald Reagan in 1982, where he vowed to leave Marxism-Leninism on the “ash-heap of history.” Congress established the NED the following year, passing a law to support the organization’s initiatives.

The NED provides funding to several sister nonprofit organizations, such as the International Republican Institute and the National Democratic Institute, which are also affected by the funding freeze. Tom Cotton and Dan Sullivan, senators who are allies of Trump, serve on the board of the International Republican Institute.

Secretary of State Marco Rubio, who is named as a defendant in the lawsuit, was a former board member of the NED.

David Super, a professor of administrative law at Georgetown University, noted that the NED’s case bears similarities to a lawsuit filed by contracting companies for U.S.A.I.D., which also faced a freeze in funds by the Trump administration. In both cases, Congress had passed clear and mandatory authorizing and appropriations statutes. Withholding funds from the NED, according to Super, violates both laws.

Source: https://www.nytimes.com/2025/03/05/us/politics/ned-lawsuit-funding-freeze.html