Trump Administration Cuts $14 Billion in Nonprofit Funding
Donald Trump and congressional allies have cut nearly 40 percent of federal nonprofit funding, causing widespread closures of food banks and domestic violence shelters.
The administration of Donald Trump and allies in Congress have targeted the U.S. nonprofit sector since January 2025 through a series of aggressive federal actions. The government has frozen federal funds, terminated grants, and threatened the tax-exempt status of various organizations, while simultaneously cutting social safety net programs.
These measures have created an existential crisis for the sector. Analyses estimate that federal funding cuts totaled nearly 40 percent, or approximately $14 billion, within the first eight months of the second Trump administration. The financial shortfall has resulted in organization closures, staff layoffs, and significant service reductions at domestic violence shelters and food banks.
While the MacArthur Foundation, the Robert Wood Johnson Foundation, and the Marguerite Casey Foundation have significantly increased their giving to defend the sector, research indicates the broader philanthropic response is insufficient. Most foundations have maintained typical payout rates despite controlling $1.8 trillion in total assets.
