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flag One-third of U.S. nonprofits lost or delayed government funding in early 2025, harming services and jobs.

flag About one-third of U.S. community-serving nonprofits faced government funding disruptions in early 2025, with 21% losing grants or contracts, 27% experiencing delays or freezes, and 6% receiving stop-work orders, according to a national survey of 2,737 organizations. flag Larger nonprofits providing critical services were hardest hit, and many reported service reductions, staff cuts, and expected layoffs. flag Government funding, which accounts for about 42% of revenue for affected nonprofits and over half for one-fifth of service providers, remains irreplaceable due to declining philanthropy. flag The ongoing federal shutdown since October 1, 2025, has worsened the situation, though the full impact may not be known until 2026.

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