How Nonprofits Became Collateral Damage

Trump's Reckless Cuts

Fiscal responsibility is important, and there are certainly aspects of federal spending that warrant cuts. Of that I couldn't agree more. But blindly slashing programs without considering whether they are violating existing contracts, disrupting well-run programs, or otherwise disrupting important work, is simply unconscionable.

Nonprofits rely on stability to serve communities, but Trump’s erratic policy shifts have thrown them into turmoil. His administration’s sudden reversals and funding cuts left vital organizations scrambling, putting essential services—and the people who depend on them—at risk. Trump’s reckless, across-the-board funding freeze was a sledgehammer approach to a problem that required a scalpel. In Train v. New York, a unanimous U.S. Supreme Court held that the President lacks the authority to withhold funds appropriated by Congress. The immediate fallout has been devastating—especially for the most vulnerable Americans and those working tirelessly to support them.

In January 2025, the Office of Management and Budget (OMB) issued a memo ordering a temporary pause on all federal financial assistance, disrupting countless programs and grants. Nonprofits that depend on these funds were blindsided, their operations suddenly thrown into disarray with no intention paid to cuts and who it would affect. He had no idea what he was cutting, and no cost benefit analysis, or investigation into existing contracts was performed. The Trump Administration is being sued for their abrupt, unjustified, and illegal decision to revoke critical government funds, as well as NIH’s suspension of the grant approval process, which threaten life-saving research in New York and across the country. Two federal courts have issued temporary restraining orders that prohibit the Administration from freezing funding,

Healthcare providers, particularly those serving individuals with intellectual and developmental disabilities, were hit hard. In Illinois, service providers immediately felt the impact as funding reductions threatened access to essential care, even violating legal mandates for community-based services. For instance, a contract stipulating ongoing support for group homes was abruptly terminated, leaving residents without critical medical and residential assistance.

Even cultural institutions weren’t safe. The administration’s decision to defund the Institute of Museum and Library Services (IMLS) put museums, libraries, and zoos across the country at risk. In Houston, institutions like the Museum of Fine Arts and the Houston Zoo faced major funding losses, threatening the programs that bring education and enrichment to their communities.

These policy shifts didn’t just cause chaos—they sparked legal battles. In a legal battle the only winner is the lawyer. Civil rights organizations quickly filed lawsuits, arguing that Trump’s executive orders overstepped constitutional boundaries, particularly in areas like voter registration, contractual obligations and nonprofit operations.

Nonprofits have been left in survival mode, forced to rethink their strategies, scramble for alternative funding, and fight for the ability to continue their work. The damage is clear: Trump’s unpredictability hasn’t just hurt these organizations—it has left the most vulnerable Americans hanging by a thread. Like pulling the foundation out from under a house mid-renovation, his reckless policies have left a mess that will take years to clean up.