In the first months of 2025, America’s safety net began to fray. From food banks to community health programs, thousands of nonprofits found their government funding delayed, frozen or stripped away.

The Urban Institute’s October report “How Government Funding Disruptions Affected Nonprofits in Early 2025 ” reveals how the country’s moral infrastructure is buckling under the weight of political choices and bureaucratic neglect.

The report found that one in three nonprofits experienced some form of government funding disruption between January and June: 21% lost at least some government funding; 27% saw funds delayed or frozen; and 6% received stop-work orders that halted programs entirely. These numbers, the researchers wrote, reveal a “cascading effect” across the nation’s nonprofit la

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