I have a tendency to assume people understand grants stuff, so I’ll elaborate a bit.
By default, before an award can be granted by the federal government, you have to submit a three-year itemized budget with written justifications for each item. The budget has to fit specific guidelines for de minimus, staffing, etc. Sometimes this is a negotiation process before final approval.
Once the grant is awarded, you may only receive funds after you have incurred expenses. This is a reimbursement system. For staff, every hour must be logged in payroll. For contracts, there is a very specific procurement process. I don’t know all the rules but there are a lot of them. This is already a complicated process. But if you can prove these expenses using the requested documentation, you get your money back until the grant funds are expended. In our case, a period of three years. The federal government tracks and makes sure these reimbursements follow the agreed upon budget.
DOGE has now inserted itself into this complicated but transparent process. Proof of expenses are no longer sufficient. The agreed upon budget doesn’t matter any more. You now have to justify your expenses every time you submit a reimbursement request, using standards and guidelines unknown to anyone but DOGE. Rather than the Office on Violence Against Women deciding what an appropriate expense is for running a program for domestic violence survivors, DOGE gets to decide, despite a glaring lack of expertise or understanding.
This has resulted in, at best, a delay in reimbursement.
This has resulted in, at worst, an inability to pay staff for hours they worked.
“But Spicy,” you say, “Can’t non-profits just pay the money to staff from other funds?”
Not so fast.
For one, non-profits don’t generally have extra cash on hand because they legally cannot.
For another, the minute you have spent non-federal funds on a federally funded staffer, you are no longer in agreement with the original federal contract. You now run the risk of being reimbursed but not having the staff to spend it on, which means failing to spend down the grant as agreed.
This is fucking fucked.
Now take this, and add to that a total lack of future funding opportunities and you will begin to understand. DOGE is intentionally destroying nonprofits.