Washington, D.C., March 5, 2025 – Today the National Endowment for Democracy (NED) filed a lawsuit in United States District Court against Executive Branch agencies and officials for unlawfully withholding its congressionally appropriated funding, which is essential to fulfilling NED’s statutory mandate of advancing democracy around the world.
The lawsuit states that the government has wrongfully denied NED access to $167 million in already obligated funds and refused to release an additional $72 million already appropriated by Congress. These actions have severely disrupted NED’s operations, impacted its workforce, and jeopardized its ability to support democracy organizations resisting authoritarian regimes.
“NED is a venture capital fund for democracy, with 83% of its resources going directly to support people fighting for freedom of speech, thought, and religion,” said Peter Roskam, NED Board Chair. “The sudden withholding of our funds endangers that mission and cripples a force multiplier for America’s national interest. American security, prosperity, and global leadership benefit when the world is freer and more prosperous.”
“NED is committed to advancing freedom and has long enjoyed bipartisan support for this vital work,” said NED President and CEO Damon Wilson. “We’re eager to resolve this issue so our grantees can continue their essential work defending fundamental freedoms from authoritarian overreach.”
NED’s lawsuit does not concern foreign assistance funding that is at issue in other legal actions. Instead, NED’s lawsuit focuses on funds that Congress appropriates specifically for NED each year under Title I of State Department appropriations legislation. Under NED’s governing legislation, Congress has expressly required that those appropriated funds must go to NED. Congress has therefore left no discretion over whether to disburse NED’s funds.
For more than forty years, NED has played a critical role in countering the influence of authoritarian regimes like China, Iran, and Cuba. By supporting local activists and grassroots movements, NED contributes to U.S. national security and safety, combats censorship, and empowers persecuted communities including Uyghurs, Tibetans, Hongkongers, and Christian minorities in China. NED’s work promotes political and economic stability, reducing mass migration pressures, and fighting market manipulation abroad to help ensure a level playing field for American businesses and workers.
With this lawsuit, NED seeks to restore its ability to support democracy worldwide and continue its role as a pillar of American leadership in advancing freedom.
About The National Endowment for Democracy:
NED is a private nonprofit, grant-making foundation dedicated to the development and strengthening of democratic institutions around the world. NED provides assistance to strengthen democratic institutions and political processes; trade unions; free markets; and independent business associations, in addition to supporting a vibrant civic life that supports human rights, independent media, and the rule of law.
Disclosure: VERA Files has a pending grant from the NED for its fact checking public figures program.