Takeaways From AP’s Report About Cuts to Government Grants for Nonprofits
ORANGE COUNTY, CALIFORNIA, JUL 22 – Federal grant cuts have slashed nonprofit budgets by up to 50%, threatening vital services like housing and food assistance, according to local nonprofit leaders and researchers.
- The Trump administration froze, cut, or threatened many federal grants supporting nonprofits across the U.S. starting in January 2021.
- These actions disrupted decades of bipartisan support that funded nonprofits to deliver social services, challenging a system long reliant on public funding.
- In 2021, government grants amounted to $267 billion, and the Urban Institute’s analysis showed that a majority of nonprofits across all states relied on this funding to prevent financial shortfalls.
- Lindsey Spindle, a foundation president, said the need is “unbelievably deep and broad,” with 1,242 applications requesting over $250 million against $10 million in available awards.
- Nonprofits face drastic budget cuts of 40–50%, risking service losses, and leaders warn private donations cannot replace government funding or prevent homeless displacement.
41 Articles
41 Articles

The government was once a steady partner for nonprofits. That’s changing
By THALIA BEATY, Associated Press Dawn Price signs rent checks worth about $160,000 every month for 79 people that her nonprofit helps house in Laguna Beach, California. Usually, she logs into an online portal to withdraw enough from an account funded by a grant from the federal housing agency. But in February, she couldn’t. Access had been temporarily cut off for many housing organizations as part of the Trump administration’s cuts and funding …


Takeaways from AP’s report about cuts to government grants for nonprofits
President Donald Trump's policies are poised to upend decades of partnerships the federal government has built with nonprofits to help people in their…

Takeaways from AP's report about cuts to government grants for nonprofits
In his second term, President Donald Trump has cut a huge range of grants that fund social services. These policy changes are poised to upend decades of partnerships the federal government has built with nonprofits to help people in their…
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