White Paper - Navigating the Federal Funding Contraction

The federal funding landscape for nonprofits has undergone a seismic shift. Between 2025 and 2026, the Department of Government Efficiency (DOGE) terminated nearly 16,000 federal grants totaling approximately $49 billion, while the administration proposed an additional 22.6% cut to non-defense discretionary spending. The ripple effects have been severe: one in three nonprofits reported a government funding disruption in the first half of 2025, service programs have been reduced or eliminated, and hiring plans have collapsed sector-wide.