March 20, 2025

Losing a lifeline: Nonprofits panic over proposed federal cuts

By Jared Scot LIBN Contributing

Read on LIBN

Date: March 20th, 2025

A sudden and draconian freeze on a bevy of federal aid programs, ordered by the Trump administration in a since-rescinded January memorandum, sent a shockwave through nonprofits across the country. But even though the order has been temporarily halted in response to a lawsuit filed by the National Council of Nonprofits, Long Island’s nonprofit leaders  are feeling the looming threat of losing such crucial funding, and are speaking out about the cuts’ dire consequences.

About 2.7 percent of Long Islanders are food insecure—almost 300,000 people—according to data provided by Feeding America. Paule Pachter, CEO of Long Island Cares in Hauppauge, says the proposed cuts would be particularly painful for those people, since their food pantry relies on federal money to carry out its mission.

“Long Island Cares administers The Emergency Food Assistance Program (TEFAP) through a contract with the USDA which provides us with 4.5 million pounds of USDA foods that we distribute to many of our 336 member agencies to assist Long Islanders in need of emergency food assistance,” explains Pachter. “If there are cuts to TEFAP, we would have to make up the loss of USDA foods in part or completely. It could cost us up to $5.4 million to replace 4.5 million pounds of food.”

This shortfall, along with the elimination of other widely-used federal programs, would put increased pressure on people facing food insecurity. “If programs like SNAP, WIC, Medicaid and other USDA programs are cut, it could possibly result in an additional 20% increase in the number of people visiting food banks and food pantries,” Pachter says. “We could see an additional 56,000 people facing food insecurity above the current 280,000 people.”

Connecting underserved communities with food assistance is one of the many services provided by the Health and Welfare Council of Long Island (HWCLI), a Huntington Station-based umbrella organization for health and human service providers. The agencies depend on funding that comes through various channels, many of which are administered by the federal government.

“The network of Long Island nonprofits relies on myriad of federal funding resources to provide essential services to community members,” explains Vanessa Baird-Streeter, the organization’s CEO. “Federal funding streams can flow directly to Long Island nonprofit organizations or be distributed to New York State governmental agencies, which then contract with organizations to deliver these services.”

For many of these providers, the loss of federal funding threatens their very existence. “Many essential programs, such as mental health services, substance abuse treatment and housing assistance, would face cutbacks or complete elimination due to the loss of federal grants and contracts,” Baird-Streeter says. “Without federal funding, organizations would need to rely more heavily on alternative funding sources like private donations, state and local grants, and fundraising events.
This shift could lead to financial instability and increased competition for limited resources.”

Struggling Long Islanders aren’t the only ones affected by the cuts, notes Baird-Streeter. “The loss of federal funding could severely affect the Long Island workforce, resulting in staff layoffs or reduced hours, impacting the ability of organizations to deliver services effectively,” she says. “Long Island nonprofits employ tens of thousands of individuals who would be adversely affected by significant reductions in federal funding.”

Across many sectors, the consequences of a federal funding freeze threaten to disproportionately affect groups that often endure more hardships than most. “The arts sector we support would experience serious disruptions,” says Lauren Wagner, executive director of Long Island Arts Alliance in Patchogue. “Federal grants provide stability for many arts nonprofits, and without them, organizations would be forced to make difficult choices—reducing programming, laying off staff, and limiting public access to the arts. The loss would be particularly devastating for organizations that serve historically marginalized communities, where access to arts education and cultural programming is already limited.”

Moreover, the impact of the proposed cuts would extend beyond the arts sector itself.

“Long Island’s creative economy is a significant driver of tourism, job creation, and local business activity,” Wagner points out. “Less funding for the arts means fewer cultural events, fewer opportunities for artists, and a weakened economic and social fabric across the region.”

While arts and cultural organizations can pursue other ways to raise funds, Wagner explains that federal programs offer more than just money for arts nonprofits, and therefore can’t be easily replaced. “Federal grants don’t just provide funding; they validate the importance of the arts and often serve as a catalyst for additional investment through matching requirements,” she says. “Without them, organizations will be competing for a shrinking pool of resources, making it even more challenging to sustain long-term programming.”

The panic has prompted nonprofit leaders to appeal to the public with calls to action. “People can advocate by meeting with their members of Congress, they can raise public awareness by writing letters to the editors of various publications, they can host press conferences to put a face on the issue, and we can mobilize by holding public demonstrations,” suggests Pachter. “Food insecurity on Long Island increased by 30% in 2024, and if the proposed cuts in federal funding are approved by Congress and we see a significant increase in unemployment, this problem will be exacerbated.”

Elected officials, Baird-Streeter says, should be held accountable by their communities to ensure their needs are met. “Nonprofits must urgently raise awareness and collaborate with their federal representatives to highlight the severe consequences of significant reductions in federal spending,” she warns. “It is imperative that nonprofits and all community members underscore the interconnectedness of the essential services nonprofits provide and the vital role they play in maintaining a healthy, thriving society.”

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