NYC nonprofits say they've lost millions of dollars in federal funding
NEW YORK CITY (PIX11) – New York City nonprofits say they've already lost millions of dollars in federal funding, and are bracing for much more.
New York City Council on Wednesday held a hearing to 'Trump proof' the city's budget, which includes over $9.69 billion in federal funding, 8.3% of the city's 2025 budget. But federal budget cuts go far beyond city agencies, council members said.
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More than a dozen nonprofits testified they are preparing for a massive federal funding cliff that could threaten programs like legal support for immigrants and domestic violence hotlines.
For some, like Catholic Charities and the Campaign Against Hunger, funding has already started running dry.
Catholic Charities, which provides shelter resources and legal services across New York City, has already lost over $5 million, according to Joseph Rosenberg, executive director of the Catholic Community Relations Council. Some $4.3 million was pulled in March and another $1.45 million this week, Rosenberg said.
It will primarily affect the organization's legal services for unaccompanied minors and asylum seekers at the city's immigration courts, he said. The organization has been negotiating to at least delay some of the budget cuts.
'This is a devastating hit,' Rosenberg said. 'It changes day to day. Sometimes contracts are terminated, sometimes they're revised.'
More: Latest News from Around the Tri-State
Many organizations raised alarm bells about potential threats to SNAP Benefits and FEMA aid freezes.
The Campaign Against Hunger, which distributes meals to 1.5 million New Yorkers annually, recently had $1.3 million in Shelter and Services funding frozen, according to Executive Director Melony Samuels.
'We currently face a crisis in hunger and food insufficiency we have not seen before,' Rosenberg said.
The organization has received multiple letters from the federal government saying it is out of compliance because of its support for migrants.
Win, which runs shelters for homeless families with children, said FEMA food aid losses have already hit its shelter occupants.
And the nonprofits are expecting greater hits, advocates said. The Korean American Family Service Center, which provides legal support and counseling to immigrants facing domestic violence, projects it will lose up to $2 million by September 2026. This represents 44% of its operating budget, Executive Director Jeehae Fischer said.
'Has already forced us to freeze key hires and re-evaluate essential programming,' said Fischer. 'We're deeply concerned about how we will continue to meet the needs of the 3,000 survivors and families we serve annually.'
Emily Rahhal is a digital reporter who has covered New York City since 2023 after reporting in Los Angeles for years. She joined PIX11 in 2024. See more of her work here and follow her on Twitter here.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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