Economic Impact

Trump Administration’s Cuts to Nonprofit Grants Threaten Vital Community Services

By Economics Desk | July 22, 2025

The Trump administration’s aggressive rollback of federal grants to nonprofits jeopardizes critical social programs nationwide, threatening the very safety nets Americans rely on. This report exposes the scale and consequences of these cuts.

For decades, federal partnerships with nonprofits have been a cornerstone of America's community support system, bridging gaps in public safety, education, food assistance, and more. But under President Donald Trump's policies, this reliable safety net is unraveling fast.Why Cutting Government Grants Harms American CommunitiesSince the 1960s, federal funds have empowered nonprofits to tackle social problems at the grassroots level. Yet the Trump administration’s decision to freeze and slash these grants is dismantling an ecosystem vital to millions of Americans. The Urban Institute recently revealed that in 2021 alone, $267 billion flowed from all government levels to nonprofits—a figure that only...

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