
President Ronald Reagan during a state visit to London in June 1982. During this visit, Reagan laid the rhetorical groundwork for the National Endowment for Democracy in a speech.
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Fox Photos/Hulton Archive/Getty Images
The National Endowment for Democracy (NED) is taking legal action against the Trump administration for blocking access to almost $240 million in funds approved by Congress. The lawsuit, filed Wednesday night in the federal district court in the District of Columbia, marks another instance where an organization is challenging the government over its refusal to release appropriated funds.
The NED backs various initiatives, ranging from supporting democracy advocates in Hong Kong to promoting independent media in Iran.
Officials from the NED report that the funding freeze has resulted in a “catastrophic” cash flow crisis, leading to the furlough of 75% of its workforce and jeopardizing its future.

“NED acts as a venture capital fund for democracy, allocating 83% of its resources to support those championing freedom of expression, thought, and belief,” stated former Republican congressman and current NED Chair Peter Roskam. “The abrupt interruption of our funding jeopardizes this mission and undermines a force multiplier for America’s national interests.”
The lawsuit targets the State and Treasury departments, along with their heads, Marco Rubio and Scott Bessent, in their official capacities. These departments have yet to respond in court, and the State Department has refrained from commenting on current litigation.
Rubio previously served on the board of the International Republican Institute, which benefits from NED funding. In 2017, he expressed gratitude to the Endowment for its efforts to “promote the cause of freedom and implement the vision President Reagan articulated years ago.”
The Treasury Department has not furnished a response to NPR’s inquiries.
The suit also implicates the White House Office of Management and Budget and its director, Russell Vought, in his official capacity.
Bipartisan legacy
Established in 1983 by Congress, the National Endowment for Democracy aims to bolster democracy, extend American soft power, and counter Soviet influence, enjoying bipartisan backing. President Ronald Reagan provided the rhetorical basis for the initiative in a speech to the British Parliament in 1982.
“If the rest of this century is to observe the gradual emergence of liberty and democratic values, we must act to aid the cause of democracy,” Reagan asserted. “The objective I propose is straightforward: to nurture the framework of democracy.”
By withholding funding for the NED and the U.S. Agency for International Development, the Trump administration is effectively undermining that framework.
Domestic and international backlash
Though the NED has enjoyed widespread support across party lines, it has faced criticism.
The Center for Renewing America, a conservative think tank previously led by Vought, has labeled the NED a “partisan political tool” that interferes in the internal matters of other nations and incites unrest. Leaders of the Chinese Communist Party have accused the NED of attempting to destabilize the region by supporting human rights activists in Tibet, Xinjiang, and Hong Kong.

Roskam, the NED chair, asserts that the primary beneficiaries of the Trump administration’s funding suspension are authoritarian regimes from Moscow to Havana.
“The most effective way to confront tyrants is by empowering their citizens,” Roskam stated in the National Review. “That’s precisely what the NED accomplishes.”