Nonprofit organizations across North Texas are reeling from devastating funding cuts due to the federal government’s efforts to reduce “waste, fraud and abuse” from the budget. CoAct, a social design studio focused on developing strategic responses to societal challenges in Fort Worth, is not immune to these cuts.
The North Texas Community Foundation, Communities Foundation of Texas, and The Dallas Foundation conducted a survey that found non-profits across the region lost an estimated $127 million in federal funding during the first half of 2025. This includes $71.6 million in federal money that mostly impacted organizations providing social services, education programs for children, housing services for the homeless, and meals for the elderly.
The impact is being felt by nonprofits with budgets over $10 million, such as universities and large social service agencies. The survey also found that 56% of respondents reported a decrease in funding. Federal cuts are leading to significant reductions in services, staff layoffs, and reduced hours of operation.
Partnership Home, which partners with shelters across Tarrant County to combat homelessness, saw its federal grant funding increase this year but still faces budget constraints. The organization has reduced its staff by 20% and scaled back some services due to the pandemic-era aid running out.
Meals on Wheels of Tarrant County lost $1.5 million in federal pass-through dollars for fiscal year 2025 and $500,000 for 2026, affecting its $14 million budget. The organization is looking to cut costs without impacting services, including reducing staff hours and hot breakfasts.
The economic uncertainty is also leading to declining donations, with a $25.3 million decline in foundation grants and individual donations reported by nonprofits. This loss could be attributed to the country’s focus on political spending in 2024 and economic uncertainty.
Nonprofits are hoping to make up some fundraising losses on North Texas Giving Day, but many will have to cut their donation amounts due to financial constraints. The nonprofit industry has shed at least 22,757 full-time jobs nationwide since the start of 2025.
Source: https://fortworthreport.org/2025/09/17/north-texas-nonprofits-lost-127m-in-six-months-mostly-from-federal-sources-survey-finds