Federal Funding Cuts Impact Thousands of U.S. Nonprofits Nationally

Nonprofits across the United States are experiencing significant challenges due to federal funding cuts and government shutdowns in 2025, affecting their ability to serve vulnerable populations. Surveys conducted in Erie County, Austin, South Florida, and nationally reveal that many organizations face funding reductions, staff layoffs, and increased demand for services amid these financial constraints. For example, Erie County nonprofits lost over $13.5 million in federal funding, with many facing waitlists and operational uncertainty. In South Florida, cuts to Medicaid and federal grants have heightened fears of increased food insecurity and diminished social services. National data show that about one-third of U.S. nonprofits lost government funding or faced delays, leading to reduced services and staff. Efforts are underway in various regions to survey nonprofits and foster collaboration to address service gaps and advocate for strategic funding support.