All across the US, nonprofit organizations are bracing for serious impacts from recent and proposed federal funding cuts. Many of these trends are national in scale and thus challenge nonprofits that are local to Glen Ridge, Essex County, and northern New Jersey as a whole. The federal government is currently considering funding reductions that may impact community-based organizations supported by nonprofit infrastructure. The Trump administration has proposed a 22.6% cut (~$163 billion) in non-defense discretionary spending, which encompasses many grants, contracts, and support streams relied on by nonprofits. Large-scale examples of this include a 40% cut to the NIH and a 50% cut to the EPA, as well as steep cuts to housing, education, and workforce development programs. These appropriations must still be ultimately approved by Congress, but this blueprint indicates a shift in federal priorities that all nonprofit sectors in the US should be prepared for.
A pattern of general effects and expectations for US nonprofits can be helpful to frame what local organizations may expect in the near future. For example, 52% of federally funded nonprofits have reported financial instability amid the new funding cuts and have had to reduce staff and delay programs. Another study found that one-third of nonprofits in general have reported at least one form of government funding disruption in early 2025, and that the average nonprofit gets ~28% of revenue from government sources. These statistics indicate the vulnerability of nonprofits that are either fully or semi-reliant on government funding, which make up a significant portion of nonprofits in general. These federal impacts can also be observed in local nonprofits. For example, the nonprofit MEND (Making Ends Meet), consisting of food pantries and mobile programs and serving in the Maplewood and Orange region as well as broader Essex County, has reported a $150,000 loss of federal Local Food Purchase Assistance funds this fall. This is just one example of a local nonprofit grappling with funding shortfalls, a problem that will likely only continue to worsen as the funding cuts are gradually enacted into law.
It is difficult to gauge the future impacts and local implications of the federal funding cuts, but some effects will likely be seen due to the specific demographics of northern NJ and how nonprofits are run. For instance, nonprofits may need to scale back their key services, like food pantry hours and mobile outreach, as MEND will have less ability to serve seniors, families with children, and homebound residents if their LFPA funding is lost. Smaller nonprofits will be especially vulnerable, having a smaller volunteer base/supply of resources to fall back on.
While the situation is challenging, and there is certainly no end-all be-all solution to account for funding cuts, there are actions that nonprofits, funders, policymakers, and community members in Essex County can consider. Nonprofits themselves can diversify their funding sources by building streams of income beyond federal grants, as well as implementing other buffer plans for reduced grants. They can also increase transparency with funders and stakeholders, to build trust and allow for better relationship building with more partners and donors. Finally, nonprofits can streamline their operations by implementing reasonable cost-saving measures and detecting pressure points in their organizations as proactively as possible to attack head-on. Funders and donors for such foundations can also do their part to assist in these efforts. For instance, they can implement specific funding plans designed for flexibility in economically difficult times, such as bridge funding and unrestricted grants. They can also coordinate with other local donors to spread the word to strengthen the impact that can be made with such constrained resources. Finally, local policymakers can assist governmentally by highlighting the consequences of these federal cuts and increasing general knowledge on the topic in order to influence future policy decisions.
Essex County and Northern NJ nonprofits are navigating a challenging economic climate, and will continue to be subjected to these difficulties for the foreseeable future. Federal cuts are set to affect organizations providing critical services to thousands of needy residents, bestowing upon these nonprofits an array of difficulties and hard choices to make regarding staff and funds. The key to mitigating these issues is proactive engagement, collective action, and outreach to potential donors.
