STM Blog
1 in 3 US nonprofits that serve communities lost government funding in early 2025
Lewis Faulk, American University and Mirae Kim, George Mason University
About one-third of U.S. nonprofit service providers experienced a disruption in their government funding in the first half of 2025.
That’s what we found when we teamed up with Urban Institute researchers to collect nationally representative survey data from 2,737 nonprofits across the country.
These organizations run food pantries, deliver job training and offer mental health services. They provide independent living assistance, disaster relief and emergency shelter, among other services.
Our team found that 21% lost a grant or contract, 27% faced delays or funding freezes and 6% were hit with stop-work orders. Some of the nonprofits had experienced more than one of these funding problems, which affected nonprofits of all kinds. But they were especially disruptive to larger ones that employ more people and provide key services, such as large social service agencies, food banks and organizations serving people enrolled in Medicaid.
These findings came from the most recent Nonprofit Trends and Impacts survey, which we conducted from April to June 2025 with colleagues at the Urban Institute, including Laura Tomasko, Hannah Martin, Katie Fallon and Elizabeth T. Boris. They follow findings from a prior survey that the project fielded between October 2024 and January 2025.
When funding dries up, nonprofits tend to shrink and scale back their services. About 21% of those hit by funding cuts in the first half of 2025 were already serving fewer people by the time they completed the survey in April, May and June 2025, and 29% had reduced their staff. Many of these nonprofit leaders also told us they expect to have to lay off more of their employees by the end of 2025.
Nonprofits had already been facing financial pressure.
In the prior round of the survey that our team conducted in the fall of 2024, more than half of nonprofit leaders said they were worried about their organization’s finances. Many of them said they had received less money through donations and were facing tougher competition when they applied for grants, largely due to a tougher economic climate and the end of federal funding that had been disbursed during the COVID-19 pandemic.
Why it matters
Nonprofits often partner with the government to deliver essential services. This government support is vital – it makes up about 20% of the revenue that most nonprofits rely on. What’s more, government funding provided more than half of total revenue for about 1 in 5 service-oriented nonprofits in 2023, which is the most recent data available.
That same year, about 2 in 3 nonprofits received at least one federal, state or local government grant or contract.
Government funding made up 42% of total revenue for service-providing nonprofits that experienced government funding disruptions in our 2025 survey. The rest of their funding came from donations, foundation grants and service fees.
Nonprofits get less than half of their total revenue from foundations and individual donations, and total government funding for nonprofits amounts to around three times total foundation funding. That makes it unlikely that philanthropy will replace the government funding that’s being lost.
What still isn’t known
Nonprofits from California to Florida are seeing their funding withheld, and the government shutdown that began Oct. 1, 2025, is compounding the effects of the Trump administration’s longer-term spending cuts. The full extent of the impacts of these federal disruptions on nonprofits’ budgets won’t be known until 2026 or later.
In addition, our survey doesn’t include the leaders of very small nonprofits, or several kinds of nonprofits – including hospitals, colleges, universities, churches and foundations.
What’s next
Our upcoming Nonprofit Trends and Impacts surveys in early 2026 will convey more of the effects of government funding cuts on nonprofits’ budgets and programs.
A more complete picture will not be possible until the Internal Revenue Service publishes data that it collects from the 990 form that most charitable nonprofits must file on an annual basis. Historically, The IRS has taken years to release comprehensive nonprofit financial data, requiring additional research beyond the 990 form.
Lewis Faulk, Associate Professor of Public Administration and Policy, American University and Mirae Kim, Associate Professor of Nonprofit Studies, George Mason University
This article is republished from The Conversation under a Creative Commons license. Read the original article.
Urbanism
LA Metro’s D Line Extension Phase 1 Officially Opens, Bringing Subway Service to Mid-Wilshire and Beverly Hills
LA Metro’s D Line Extension: LA Metro officially opens Phase 1 of the D Line Subway Extension, connecting Downtown Los Angeles, Mid-Wilshire, and Beverly Hills with three new underground stations.
The future of transportation in Los Angeles has officially arrived.
LA Metro’s D Line Extension Phase 1 Officially Opens
The Los Angeles County Metropolitan Transportation Authority (Metro) officially opened Section 1 of the long-awaited D Line Subway Extension on May 8, 2026, expanding underground rail service westward through the historic Mid-Wilshire corridor and into Beverly Hills.
The 3.92-mile extension is one of Metro’s most ambitious transit infrastructure projects and marks a major milestone in Los Angeles public transportation. The new section extends subway service beyond the current Wilshire/Western station in Koreatown and introduces three new underground stations:
- Wilshire/La Brea
- Wilshire/Fairfax
- Wilshire/La Cienega
The expansion is part of Metro’s larger “Twenty-Eight by ’28” initiative designed to improve mobility across the region ahead of the 2028 Olympic and Paralympic Games.
Downtown Los Angeles to Beverly Hills in About 20 Minutes
With the extension now open, riders can travel from Union Station in Downtown Los Angeles to Beverly Hills in approximately 20 minutes with no transfers required.
The D Line extension is expected to significantly improve travel along the heavily congested Wilshire Boulevard corridor, offering commuters, visitors and residents a faster and more reliable alternative to driving.
“Traveling through Mid-Wilshire to experience the culture, cuisine and commerce across diverse neighborhoods will be easier, faster and more accessible,” said Fernando Dutra, Metro Board Chair and City of Whittier Council Member.
Metro CEO Stephanie Wiggins also highlighted the importance of the project in connecting Angelenos to some of the city’s most iconic destinations.
“Angelenos and visitors alike will love the extended service from Downtown Los Angeles to Beverly Hills, delivering greater access to the iconic and culturally diverse communities, institutions and destinations that define the deep history along Wilshire Boulevard,” Wiggins said.
New Stations Connect Riders to Cultural Landmarks
Wilshire/La Brea Station
Located near Hancock Park and the western edge of Koreatown, the station provides access to cultural and entertainment destinations including:
- Korean Cultural Center
- Marciano Art Foundation
- Ebell Theater
- Popular restaurants including Republique and Sycamore Kitchen
Wilshire/Fairfax Station
Known as the heart of Museum Row, this station serves some of Los Angeles’ most recognizable cultural institutions and attractions, including:
- Los Angeles County Museum of Art (LACMA)
- Academy Museum of Motion Pictures
- Petersen Automotive Museum
- La Brea Tar Pits
- The Grove
- Original Farmers Market
The station also connects neighborhoods including Little Ethiopia, Park La Brea and the historic Fairfax District.
Wilshire/La Cienega Station
Serving as the eastern gateway to Beverly Hills, the station provides convenient access to Restaurant Row and destinations including the Beverly Center.
A Major Milestone for Los Angeles Transit
The D Line extension has been decades in the making and is widely considered one of the most important transit projects in Los Angeles history.
The project was funded primarily through Measure R, the voter-approved transportation sales tax passed in 2008, along with substantial federal funding support that included:
- $1.25 billion Full Funding Grant Agreement (FFGA)
- $66.4 million supplemental New Starts funding
- $749.3 million TIFIA loan
All three stations feature modern amenities including public artwork, enhanced lighting, cell phone service, bicycle hubs and improved pedestrian access.
Metro officials hope the extension will encourage more residents and visitors to use public transportation while helping reduce roadway congestion ahead of major international events scheduled for Los Angeles later this decade.
What’s Next for the D Line?
Construction is already underway on future phases of the D Line extension.
Phase 2 will continue west into Beverly Hills and Century City, while Phase 3 will eventually extend subway service to UCLA and the West Los Angeles VA campus.
Once completed, the D Line will provide a direct subway connection between Downtown Los Angeles and the Westside, dramatically reshaping mobility across one of Southern California’s busiest corridors.
Learn More
For official project details and station information, visit:
Metro D Line Opening Information
Stay connected with STM Daily News for the latest updates on Los Angeles transportation, Metro expansion projects, infrastructure developments, local news, technology, culture, and more. Visit STM Daily News for breaking stories, in-depth coverage, and exclusive content from across Southern California and beyond.
Last Updated on May 4, 2026 by Daily News Staff
Cinco de Mayo is a holiday that commemorates the Mexican army’s victory over the French Empire at the Battle of Puebla on May 5, 1862. In the United States, the holiday has become a celebration of Mexican-American culture and heritage, often involving parades, parties, and traditional foods such as tacos and margaritas.
How will you celebrate Cinco de Mayo?
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The Substitute Teacher Who Wanted Blueprints of Our House
A fifth-grade assignment took a strange turn when a substitute teacher asked students to draw schematics of their homes. What followed — a wildly fictional floor plan and a priceless reaction from my mom — turned into one of my funniest childhood memories.
The Substitute Teacher Who Wanted Blueprints of Our House
Elementary school memories tend to blend together — cafeteria pizza, playground arguments, the eternal struggle of times tables — but every once in a while, something happens that sticks with you for life. For me, that moment came in the fifth grade during a week when our regular teacher was out, and we cycled through substitute teachers like we were testing models for durability.
By midweek, in walked a substitute with a mysterious, slightly intense energy — the kind of vibe that suggested he either meditated at dawn or worked a graveyard shift doing something he couldn’t talk about. We settled into our seats, expecting worksheets or quiet reading time.
But nope.
He had other plans.
“Today,” he announced, “we’re going to draw schematics of our houses.”
Schematics. Not drawings. Not little houses with smoke coming out of the chimney. Actual blueprint-style schematics. He wanted the layout of our bedrooms, our parents’ rooms, and where the pets slept. Every detail.
Now, to be fair, Highlights Magazine did have a feature that month teaching kids how to draw floor plans. So maybe he was just a bit overenthusiastic about cross-curricular learning. Or maybe — and this is my completely rhetorical adult theory — he worked the graveyard shift as a cat burglar gathering intel between heists. Just moonlighting between blueprints.
While the rest of the class tried their best to recreate their actual homes, my imagination sprinted in a totally different direction. The house I drew had:
- A massive master bedroom with an oversized bathroom for my parents
- Separate bedrooms for us kids on the opposite side of the house
- A kitchen placed right in the center like a command center
- And the dog — the true VIP — had a luxurious two-story doghouse
I had basically created a dream home designed by a 10-year-old watching too much Fantasy Homes by the Yard.
Later that day, my mom asked the usual question: “So, what did you guys do today?”
“We drew schematics of our house,” I said casually.
The look on her face was instant and intense. She wasn’t panicked, but there was definitely a “Why does a substitute teacher need to know the exact layout of my home?” expression happening. Parental instincts activated.
But then I showed her my diagram.
She stared at it. Blinked. Then sighed with massive relief.
“This isn’t our house,” she said.
“Nope! I made it up,” I replied proudly.
Her shoulders relaxed so much she probably lost five pounds of tension in one instant. If the substitute was secretly planning a heist, my masterpiece of misinformation would have sent him to the wrong house entirely.
Looking back, the whole moment feels like a sitcom setup — a mysterious substitute collecting “house schematics,” me creating a completely fictional piece of architecture, and my mom going on a full emotional journey in under 30 seconds.
Maybe he was just excited about the Highlights Magazine floor-plan activity. Or maybe — just maybe — he moonlighted in cat burglary. We’ll never know.
But if he was, I like to think I threw him completely off the scent.
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