Environmental groups say Department of Interior canceled grants flagged for DEI, leaving millions in interrupted projects

Luna Latimer, director of the Mid Klamath Watershed Council (Mi'kWick), told NorCann attendees that many stewardship- and habitat-focused nonprofits rely on federal pass-through funding and that a September Department of Interior action canceled dozens of fish-and-wildlife grants.

"At the September, we received notification from the Department of Interior that they were canceling all of our fish and wildlife service grants," Latimer said. She said there was about $2,000,000 left in those grants at the time and that roughly 70 to 80 grants were terminated across multiple groups; many recipients were flagged as DEI-linked, she said.

Latimer described how the stewardship sector depends heavily on federal contracts and tribal pass-throughs and said the cancellations created urgent operational and legal questions: boards and staff were weighing whether to pursue litigation or other remedies and how to manage cash-flow and contract clauses that require reimbursement for work already underway.

Latimer also noted legislative developments that could affect land-management practices — including an early-stage "Fix Our Forests" bill she said had language initially allowing expanded herbicide spraying but was later revised after advocacy — and flagged NEPA scoping changes that could reduce notice to stakeholders. She urged continued coordination among nonprofits, tribal governments and lawyers to assess risk and response options.

Next steps: Environmental groups plan to consult coalition partners and legal counsel, share best practices on contract clauses and continue tracking federal announcements that affect grant eligibility and NEPA process changes.