DOGE and the Debate over Nonprofits
On June 4, 2025, the U.S. House Subcommittee on Delivering on Government Efficiency (“DOGE”) held a hearing titled “Public Funds, Private Agendas: NGOs Gone Wild.” The hearing reflected a rising political turmoil: the role of nonprofit organizations in public life and the use of federal funds to support their work.
Established in January 2025 by Executive Order from President Trump, the DOGE Subcommittee’s mission is to maximize government efficiency and cut wasteful spending. Trump appointed Elon Musk as a “special government employee” to lead the initiative, shaping its public presence; however, Musk has since left DOGE and has publicly criticized its legislative policies. Despite his departure, the DOGE Subcommittee has continued its investigations, including turning its attention to nonprofit organizations and their use of federal funds—particularly, nonprofits aligned with progressive causes or recipients of government grants under the Biden Administration.
During the hearing, DOGE Chair, Representative Marjorie Taylor Greene (R-GA), and several Republican members alleged that Democratic officials have funneled millions of taxpayer dollars to politically aligned nonprofit organizations. Calling it an “incestuous circle” they accused Democratic policymakers of funding nonprofits that then donate to and support Democratic political candidates and efforts. Particular attention was paid to groups involved in green energy and immigration support services. These claims undermine the importance of understanding and observing the legal boundaries of political activity for Section 501(c)(3) organizations. Public charities are strictly prohibited from participating in any campaign-related activity, including endorsing candidates, making contributions, or engaging in express advocacy. Private foundations face even tighter restrictions. Learn more about these limitations in our webinar series on on our Insights page.
Democratic members of the House, including Representative Melanie Stansbury (D-NM), pushed back on claims that nonprofits were “slush funds.” She characterized the hearing as an attack on civil society and organizations that did not conform with the current administration’s ideology.
Diane Yentel, President of the National Council of Nonprofits, was called as a witness on behalf of the minority-party Democrats and highlighted that 99% of American nonprofits are local organizations serving essential roles in the community. She emphasized that nonprofits are far from being political operatives but rather help meet needs of the community the government itself cannot always address. She warned that the current political environment is leading to real consequences: local food banks cutting services, community health clinics closing, and violence prevention programs shutting down.
Earlier this year, the Trump Administration began freezing large amounts of previously approved federal funding for nonprofit organizations, including grants for biomedical research to community policing. In response, a coalition of nonprofits filed suit against the administration, arguing the freezes were arbitrary and unlawful. In April 2025, a federal judge issued a preliminary injunction, siding with the plaintiffs and ordering the release of a portion of the frozen funds. Ongoing litigation could decide whether to reinstate the remainder of the funds.
As the hearing drew to a close, Yentel offered a clear message to nonprofits under scrutiny: “Nonprofits are the backbone of this country, providing critical support to improve communities and save lives.” As the political and legal landscapes continue to evolve, we at Nonprofits Counsel will keep our clients informed and offer strategic, targeted advice to our clients that preserves the essential role they play in our civil society.
Sources
U.S. House Comm. On Oversight & Accountability, DOGE Subcommittee Announces Hearing to Expose NGOs’ Use of Federal Funds to Advance Radical Agenda, https://oversight.house.gov/release/doge-subcommittee-announces-hearing-to-expose-ngos-use-of-federal-funds-to-advance-radical-agenda/
Nonprofits Targeted at Partisan DOGE Subcommittee Hearing, NonProfit Times, https://thenonprofittimes.com/npt_articles/nonprofits-targeted-at-partisan-doge-subcommittee-hearing/
Maya Yang, Marjorie Taylor Greene Leads GOP Attack on Nonprofits in Capitol Hearing, Guardian (June 4, 2025), https://www.theguardian.com/us-news/2025/jun/04/marjorie-taylor-greene-hearing
Rithika Ramamurthy, Conservatives Attack Nonprofits on Capitol Hill, Nonprofit Q. (June 3, 2025), https://nonprofitquarterly.org/conservatives-attack-nonprofits-on-capitol-hill/
Coalition Sues over Federal Funding Cut to Nonprofits, Democracy Forward, https://democracyforward.org/work/coalition-sues-federal-funding-cut/
Nonprofits Win Injunction to Release Frozen Federal Funds, NonProfit times, https://thenonprofittimes.com/npt_articles/nonprofits-win-injunction-to-release-frozen-federal-funds/