Trump's Policies Threaten Crucial Nonprofit Funding, Endangering Social Services Nationwide
July 22, 2025
President Donald Trump's policies are threatening longstanding partnerships between the federal government and nonprofits, risking significant cuts in federal grant funding that could dismantle decades of social service infrastructure.
Recent studies show overwhelming demand for nonprofit funding, with applications exceeding available grants by a large margin, prompting increased grantmaking efforts from foundations.
The Bronx River Greenway, a symbol of environmental justice, faces potential loss of funding that has helped transform the area from industrial wasteland into a community hub.
Nonprofits like Friendship Shelter in Laguna Beach, which relies heavily on federal support to house vulnerable populations, are already feeling the impact of funding cuts, risking evictions and service disruptions.
Even affluent areas such as Orange County, California, are experiencing drastic budget cuts, with some nonprofits facing reductions of up to 50%, highlighting a sector-wide crisis.
Many nonprofits are seeking alternative funding sources, but the sector's fragility makes it difficult, especially as local organizations depend more on government support than wealthier counterparts.
Over 84% of nonprofits in the Bronx rely on federal funding, making them particularly vulnerable to recent cuts, which threaten essential community services.
The Osborne Association, working to prevent youth violence, lost a significant portion of its grant, leading to layoffs and reduced youth programs, exemplifying the broader impact of funding reductions.
An analysis shows that over half of nonprofits nationwide depend on government grants, which are critical for their operations, with private donations unable to fill the funding gap.
Federal grant cancellations, including over $810 million for violence prevention and $2 billion in environmental justice grants, are causing widespread uncertainty and layoffs.
Leaders warn that further funding cuts could force vulnerable individuals back onto the streets, exposing a crisis in social support systems.
Experts warn that losing federal funding could have catastrophic consequences for marginalized communities that rely on nonprofit services.
Summary based on 5 sources
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Sources

AP News • Jul 22, 2025
How Trump's grant cuts are devastating Bronx nonprofits | AP News
AP News • Jul 22, 2025
Takeaways from AP's report about cuts to government grants for nonprofits | AP News
Orlando Sentinel • Jul 22, 2025
The government was once a steady partner for nonprofits. That’s changing