If you’ve ever relied on a local nonprofit for a meal, a legal resource, a community arts program, or a safe space to access healthcare—you’re not alone. And if you’re wondering how federal policy decisions made hundreds of miles away in Washington, D.C. could impact those services right here in San Diego County, the answer is: more than you might think.
A new report from The Nonprofit Institute at the University of San Diego makes that connection clear.
Based on a February 2025 survey of more than 400 nonprofit leaders across the region, “Federal Impacts on Nonprofits: San Diego County Survey of Nonprofit Leaders” sheds light on the very real ripple effects that recent federal executive orders and policy shifts are having on local organizations—and the communities they serve.
The Backbone of the Community, Under Strain
San Diego County is home to over 13,000 registered public charities, employing thousands of people and touching nearly every aspect of daily life—arts, education, housing, healthcare, food security, the environment and more. And while government funding supports a significant slice of their work, it’s become increasingly unstable in recent months.
More than half of the nonprofits surveyed said they receive federal funding. But here’s the catch: 40% of those organizations reported trouble accessing those funds. In many cases, grants have been paused, communication with federal agencies has broken down, and the flow of dollars has stopped entirely—with no clear explanation or timeline for resolution.
One organization describes it this way: “The [federal] program officer for our grant has been placed on leave. This makes it impossible for us to engage with our sponsor, and the flow of funding has stopped.”
That kind of limbo can derail everything from staffing to service delivery.
Programs Cut, Staff Laid Off, Communities on Edge
According to the survey, nearly one-third of nonprofits have already had to modify or end services due to federal actions. These changes especially damage sectors like immigration services, healthcare, education and the arts.
Some nonprofits are shifting the language in their programs. Others are redirecting staff time to legal workshops and “Know Your Rights” training as fears of immigration enforcement rise. And some—heartbreakingly—are laying off staff or shutting down programs altogether.
Fifteen organizations had already laid off a combined 498 employees by mid-February. And many more expect they may have to follow suit if funding uncertainty continues.
One organization working with immigrants and refugees sums it up: “We’ve had to cover positions with private funds but will soon need to lay off staff and cease those services. We are concerned that other federal funding will also be cut.”
Feeling the Pressure—and Rising to Meet It
Despite the mounting challenges, nonprofit leaders aren’t backing down. Just less than half (46%) of those surveyed described themselves as feeling “activated”—eager to step up, speak out and respond to the moment.
That said, many also reported needing help. While 88% of leaders said they were familiar with the federal executive orders, fewer felt well-prepared to respond (64%) and about half knew who to contact for help (49%).
Smaller organizations, in particular, feel less informed and less equipped to navigate the shifting landscape. But whether big or small, arts-based or health-focused, these nonprofits devote significant time and energy to adapting—often without the clarity or support they need.
What They’re Asking For
So, what would help? Nonprofit leaders were asked that, too. Their answers were clear:
- Rapid response funding to address urgent needs.
- Stronger advocacy for stable and supportive federal policies.
- Amplification of nonprofit voices in public spaces and media.
- Support in building partnerships and coalitions to deliver services more effectively.
- Technical assistance and organizational capacity-building to help nonprofits weather the storm.
They’re also calling for more flexible funding—not just grants tied to specific programs, but support that covers general operations, staff well-being and administrative costs.
A Sector Under Pressure, But Not Alone
While the impacts of federal policy changes are being felt unevenly across subsectors—arts organizations cited diversity, equity and inclusion (DEI) rollbacks and cuts to cultural funding; environmental nonprofits flagged threats to science and climate programs; health centers raised alarms about disruptions to public health infrastructure—the common thread is uncertainty and urgency.
One health organization warns: “[Federally Qualified Health Centers] are the cornerstone of America’s primary care system. Disrupting them could easily create a public health disaster.”
Another, working in education, shares: “We’ve been asked to support food access and immigration services—things outside our core mission—because our communities need help, and there’s nowhere else for them to turn.”
What Comes Next
San Diego’s nonprofits are resilient. They’ve weathered tough times before. But the challenges they’re facing now are systemic—and require a collective response.
That means more than just emergency aid. It means partnerships. It means a commitment—from philanthropy, government, and the broader community—to keep these organizations strong.
Because when nonprofits are under pressure, it’s not just their operations at stake—it’s our communities. It’s the families our local nonprofits feed, the students they teach, the elders they care for, the stories they preserve and the futures they protect.
