Federal funding disappoints North Texas non-profit organizations, causing a $127 million loss in six months, as revealed in a survey
In the first half of 2025, North Texas nonprofits have faced significant funding losses, impacting services for approximately 140,000 residents. According to a recent survey, these organizations have collectively lost an estimated $127 million in funding.
The losses have been attributed to several factors, including the administration's efforts to cut "waste, fraud and abuse" out of the federal budget, which has significantly impacted grants spending and Fort Worth-area nonprofits' ability to secure federal and state aid. Additionally, federal funding was lost in the form of canceled or delayed federal contracts and grants.
Across the country, the nonprofit industry shed at least 22,757 full-time jobs in the first five months of 2025. In Fort Worth, CoAct, a social design studio, had secured several large grants to support its budget of about $400,000. However, there are no publicly available records or information regarding any foundation donations or other financial contributions received by CoAct from Jesse Herrera during the first half of 2025.
The funding declines have affected a wide range of nonprofits, including those that provide social services, education programs for children, housing services for the homeless, and meals for the elderly and homebound. For instance, Meals on Wheels of Tarrant County has seen a roughly 20% reduction in community donations in 2025 and lost about $1.5 million in federal pass-through dollars for fiscal year 2025 and $500,000 for 2026.
In response, Meals on Wheels of Tarrant County leaders are looking to cut costs without significantly impacting services. Partnership Home, a group that partners with shelters across Tarrant County, is seeing an almost 50% reduction in funding, largely due to pandemic-era federal aid running out. As a result, Partnership Home has scaled back some services, including a popular program that helps residents access social security disability benefits. The organization has also reduced its staff by 20%.
The survey aimed to use numbers to illustrate the shared stories her organization is hearing from across the area. Nonprofits with budgets over $10 million reported the biggest losses. About 56% of survey respondents reported a decrease in funding. The report notes that the funding declines could stem from the country's focus on political spending in 2024 and economic uncertainty.
Despite these challenges, the nonprofit sector in North Texas continues to serve a vital role in the community. As the impacts of the funding losses become more apparent, local organizations and individuals are encouraged to support these nonprofits to ensure they can continue to provide essential services to those in need.
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