Lake County organizations scrambling in face of federal funding cuts; ‘There's a lot of anxiety'
The Lake County Health Department said it's still trying to figure out what the recent $125 million cut in federal funding to Illinois for combatting infectious diseases, announced last week by the Illinois Department of Public Health, will mean for the county.
Health department and county representatives did not say what the exact amount and impact of the grant cuts will be. According to the department's 2024 annual report, roughly $26.8 million, about 30% of the LCHD's budget last year, came from state and federal grants.
'The county is actively evaluating all available options, in the event of a funding impact, across our various federal funding sources to support the numerous departments that depend on these resources to deliver their essential services,' a health department spokesperson said.
According to an IDPH press release, the federal funding was awarded to Illinois through 14 separate budget lines in the federal bipartisan CARES Act passed during the first administration of President Donald Trump.
Another $324 million for future work to prevent and treat infectious disease in Illinois was also being blocked, the release said. The money was meant for disease surveillance and vaccination activities, with the $125 million meant to strengthen COVID-19, measles and H5N1 disease surveillance, and to prepare for future potential pandemics.
The threat of various federal funding cuts, whether announced or only rumored, has sent shockwaves through numerous sectors in Lake County beyond the health department.
Nonprofit leaders working in housing, healthcare, education and more describe a general uncertainty and anxiety over funding issues, with organizations making plans to tighten their budgets in anticipation of possible cuts and reaching out to county partners in hopes of making up for any shortfalls.
'In the social service sector, there's a lot of anxiety about just how to prepare,' United Way of Lake County President Quinton Snodgross said.
He warned that even if their partners in the county, some of whom rely on federal funding, are not directly impacted by cuts, the current uncertainty could mean reductions in services.
'There's a lot of nonprofits that are still trying to understand the situation they're in and what is coming down the road,' Snodgrass said. 'A lot of people are making preparations for things that haven't necessarily happened yet and trying to adjust for what they could do.'
He warned cuts would have 'immediate and compounding effects' on already vulnerable families.
Gale Graves, vice president of community impact with United Way, said officials there are already seeing ripple effects from cuts to the USDA, ending funding for farmers who were supplying food pantries.
Both warned that cuts to anything, whether related to healthcare, housing or food, have ripple effects that appear in seemingly unrelated issues.
'The whole ecosystem is connected,' Snodgrass said. 'When one nonprofit loses funding, like if a clinic closes, those patients are going to be pushed to ERs or other places. A cut in shelter funding, whether for emergency shelter or rental assistance, is going to increase homelessness. That impacts education, because student mobility is a key factor in student success. It's going to impact health outcomes, and a slew of other things.'
Even delays in funding can be detrimental for some smaller organizations. Graves recalled prior to the pandemic, when social service funding was held back under then Gov. Bruce Rauner. Some organizations, unable to weather the delay, closed their doors before the money finally arrived, she said.
'There are several places where funding is being delayed, and that's equivalent to a cut. Most nonprofits do not have a large operating surplus,' Snodgrass said. 'If they're looking at 30% of their budget being delayed by three, four, five months, that will cause an interruption in service.'
Snodgrass expects the number of people who fall under the 'ALICE' designation — 'Asset Limited, Income Constrained, Employed' — to rise as federal funding is lost. These are people and families who are above the federal poverty rate, but below United Way's calculated survivable wage for the county.
'It's going to be a domino effect that agencies are going to feel,' Snodgrass said. 'But also individuals in our community are going to feel because they're reliant on services that maybe they don't know, or aren't expecting, to be impacted.'
Eric Foote, director of finance and operations at Lake County PADS, said about 13% of their budget, roughly $675,000, comes from federal funding. Cuts could be 'devastating' to their work, which includes combating homelessness.
'One of the things federal dollars are focused on is paying for people that are chronically homeless to have housing,' Foote said. 'That's hard to privately fund for; it requires steady and consistent funding.'
Federal funds support marginalized communities in the county, and if resources drop, PADS is 'going to have to make some terrible decisions,' he warned.
'We're not in the business of making money; we're in the business of turning resources into support for people,' Foote said. In the face of a 'growing crisis' with homelessness, they were 'getting squeezed from both ends. We've got more demand and less resources.'
Rachel Chenier, executive director of Family First Center of Lake County, said officials there 'just don't know' what the future holds. Chenier compared the situation to the COVID-19 pandemic, when there was 'a lot of information swirling around, but nothing concrete.'
'You're trying to prepare for something you don't really know how to prepare for because you aren't able to pinpoint it,' she said.
As uncertainty mounts, organization leaders said they're doing their best to adapt and address any shortfalls that may come. That includes leaning on local philanthropy, as well as other local municipal funding sources.
They also emphasized building up their local partnerships with other area organizations, noting the resiliency of nonprofits after making it through the pandemic.
Chenier said Family First Center is trying to be adaptable in the event that federal funding is cut.
'I think of the word 'pivot' a lot,' Chenier said. 'We've tried to learn how to find more revenue in non-traditional ways so that we're not as affected by the government funding cuts.'
Snodgrass emphasized the importance of community support to addressing the issues.
'Everybody needs to work together in tandem to understand that any changes are impacting our entire community,' he said. 'It's up to us to come together and find ways to address it.'
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