New York City's Nonprofits Bracing for Devastating Funding Cuts Amid Trump Administration's Cost-Saving Measures
The city's social service organizations are already feeling the pinch of federal funding reductions, with some scaling back food assistance, laying off staff, and ending programs this year. The impact is expected to worsen in 2026 and 2027 when deeper cuts to homeless housing programs kick in and new Medicaid work requirements come into effect.
The nonpartisan think tank Center for an Urban Future's report reveals that the Trump administration's cost-cutting measures are targeting areas such as shelter and emergency food, AmeriCorps programs, and healthcare. Administration officials claim these reductions will curb waste and abuse while restructuring programs to better serve those in need.
However, critics warn that this is a case of 'short-sighted' policy-making, prioritizing short-term savings over the long-term consequences for vulnerable populations. According to Jonathan Bowles, executive director of Center for an Urban Future, "the worst is yet to come" and some nonprofits may be forced to shut their doors due to reliance on federal funding.
The report highlights that nearly a third of nonprofit budgets in New York City are comprised of federal dollars, with some as high as 50%. This raises concerns about the sustainability of these organizations as they face reduced funding. In reality, food banks like the Food Bank for New York City have seen a significant decline in donations – 10 million fewer pounds this year alone.
Programs such as those providing weekly bags of food to underprivileged children and cooking classes for low-income families have been eliminated or severely scaled back. Furthermore, organizations serving LGBTQ+ older adults, such as SAGE, have had to lay off staff due to reduced funding.
The administration's new housing policies, which prioritize short-term solutions over long-term support, are particularly contentious. Eric Rosenbaum, president and CEO of Project Renewal, notes that these measures "are not only counterproductive but also ignore the very root causes of homelessness."
As the situation continues to deteriorate, the need for a nonprofit stabilization fund becomes increasingly urgent. Such a fund would help mitigate the most pressing needs around food, shelter, and healthcare.
The city's social service organizations are already feeling the pinch of federal funding reductions, with some scaling back food assistance, laying off staff, and ending programs this year. The impact is expected to worsen in 2026 and 2027 when deeper cuts to homeless housing programs kick in and new Medicaid work requirements come into effect.
The nonpartisan think tank Center for an Urban Future's report reveals that the Trump administration's cost-cutting measures are targeting areas such as shelter and emergency food, AmeriCorps programs, and healthcare. Administration officials claim these reductions will curb waste and abuse while restructuring programs to better serve those in need.
However, critics warn that this is a case of 'short-sighted' policy-making, prioritizing short-term savings over the long-term consequences for vulnerable populations. According to Jonathan Bowles, executive director of Center for an Urban Future, "the worst is yet to come" and some nonprofits may be forced to shut their doors due to reliance on federal funding.
The report highlights that nearly a third of nonprofit budgets in New York City are comprised of federal dollars, with some as high as 50%. This raises concerns about the sustainability of these organizations as they face reduced funding. In reality, food banks like the Food Bank for New York City have seen a significant decline in donations – 10 million fewer pounds this year alone.
Programs such as those providing weekly bags of food to underprivileged children and cooking classes for low-income families have been eliminated or severely scaled back. Furthermore, organizations serving LGBTQ+ older adults, such as SAGE, have had to lay off staff due to reduced funding.
The administration's new housing policies, which prioritize short-term solutions over long-term support, are particularly contentious. Eric Rosenbaum, president and CEO of Project Renewal, notes that these measures "are not only counterproductive but also ignore the very root causes of homelessness."
As the situation continues to deteriorate, the need for a nonprofit stabilization fund becomes increasingly urgent. Such a fund would help mitigate the most pressing needs around food, shelter, and healthcare.
. I mean, it's one thing to cut waste and abuse from programs, but this is just gonna hurt people in need even more 
. I don't think anyone thinks the Trump admin is trying to make things worse on purpose, but these cuts are still gonna have some big consequences. 50% of non-profits' budgets coming from federal funds? That's a recipe for disaster 
. Food banks are already seeing declines in donations and now they're having to scale back services? It's just not right. We should be finding ways to support these orgs, not cutting their lifeline 
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what kinda 'savings' is this gonna bring?
i dont think the admin is thinking about the long game here, theyre just trying to save $$$ in the short term but what about the people who are gonna suffer cuz of it? 
i wish we had some kind of nonprofit stabilization fund or something so these orgs could be more stable 
did u no that nearly 1/3 of nyc's non profits r funded by fed dollars?! 
thats like, a lot of cash 
what about the ppl who need help?? food banks r seeing a decline in donations already, can u imagine if they just shut down? 
and its not just food banks, homeless housing programs r next on the chopping block 
we need a nonprofit stabilization fund ASAP! 
They're already struggling with funding cuts and now they're expecting it to get worse in 2 years? It's not just about money, it's about people's lives 
. We should be thinking about solutions, like a nonprofit stabilization fund, that would help them stay sustainable 
. Maybe we can find a way to support these orgs while also being fiscally responsible 
?
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I mean, 10 million fewer pounds of food donated is a big deal - like, how do people even afford to eat now?! And those cooking classes for low-income families? Gone. Just gone. It's not just about the money, it's about the ppl who are relying on these orgs for support. 
. It's short-sighted thinking, if you ask me. We can't just focus on saving money without considering the long-term effects on our community.
Those are the kinds of things that should be prioritized over cost-cutting measures. We need to think about the people on the ground, not just our bottom line.
.
Can we please do something about this?! 
And what's with all these cuts? Shelter and emergency food should be our top priority, especially during harsh winter months 
I'm literally feeling helpless right now 
she had this epic gaming session with me for hours and we even made some homemade treats 
anyway back to nyc nonprofits they need a big dose of love ASAP because the thought of all those ppl struggling with food & shelter is giving me goosebumps 
. It's all about short-term fixes vs long-term solutions. We gotta ask ourselves, are we really solving the problem or just patching it over until the next crisis comes along?