Pause and effect: Threat of Trump funding freeze is making the future tense for North Carolina nonprofits
by Lucas Thomae, Carolina Public Press March 26, 2025
As President Donald Trump and his appointees rifle through the country’s balance sheets looking for federal spending to slash, many North Carolina nonprofits are operating in a state of financial uncertainty, hoping they’re not the next target of the administration’s cost-cutting ambitions.
While state agencies haven’t reported any major problems accessing the federal funds that trickle down to the more than 3,000 nonprofits that receive government grants, those organizations are still behaving as if it is a possibility.
The strategy for many has been to stay quiet and avoid drawing attention to themselves.
One week after Trump took office, he issued a memo ordering all federal agencies to temporarily freeze spending on loans and grants. This was necessary, the memo stated, so that officials could review whether the agencies’ payments were aligned with Trump’s previous orders aimed at “financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology and the green new deal.”
The vague memo sent shockwaves through Washington, confusing agencies and angering members of Congress across the political spectrum.
The memo directed that Medicare and Social Security benefits be unaffected by the freeze. But the White House later had to clarify that other programs such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP, colloquially known as food stamps) would also remain untouched.
Two days later, the memo was rescinded altogether.
Lawsuits over the legality of the freeze are ongoing. However, the message to organizations receiving federal money was clear:
Anyone not in lockstep with the Trump agenda risks having their government dollars taken away.
Nonprofit decisions made ‘difficult’
Since 2020, the federal government has funnelled $200 billion into North Carolina through grants and subgrants — funding awarded from an agency to a smaller agency or organization, which is then further distributed to more modest awardees.
The awardees who receive the bulk of federal grants typically fall into one of three categories: state government agencies, universities and hospitals.
None of those types of institutions are at acute risk of being crippled by the revocation of federal funding.
Small nonprofits, however, are worried. Especially those whose values directly contradict the conservative cultural ideology of the Trump administration.
State agencies, such as the N.C. Department of Public Safety, haven’t reported any major problems accessing the federal funds that trickle down to the more than 3,000 nonprofits that receive government grants. Lucas Thomae / Carolina Public Press
Carolina Public Press reached out to a plethora of state-based nonprofits to ask how they were dealing with financial uncertainty in the wake of the funding freeze. The missions of those organizations ranged from providing affordable childcare to advancing creative arts education to supporting victims of violent crime.
Not many organizations were willing to speak openly — or even anonymously.
“With the climate being rather delicate currently, we are not comfortable commenting on the federal funding and grants situation,” said the communications directorof a nonprofit that provides services to the children of migrant workers in North Carolina and several other states.
Other nonprofits who declined to be interviewed or did not respond to CPP’s inquiry at all included the North Carolina Victim Assistance Network, the LGBTQ Center of Durham and Help, Incorporated: Center Against Violence.
Each of those organizations received federal funding last year that originated from the U.S. Department of Justice and was intended to fund programs to support victims of domestic violence and other violent crime.
The strategy for many nonprofits has been to not attract attention in the hopes that they can continue to operate without much trouble.
Other organizations, such as the United Arts Council of Raleigh and Wake County (United Arts), have already seen their federal grants become threatened.
United Arts works closely with Wake County Public Schools to provide students with creative arts experiences, and the organization also awards annual subgrants to local artists to support their projects.
The National Endowment for the Arts recently awarded United Arts a $50,000 grant for distributionto local artists, but that award is now “under review,” United Arts CEO Jenn McEwen announced in February.
“The odds of our NEA grant being rejected in the review process is high,” McEwen said.
In order to offset that potential loss, United Arts urged its supporters for donations.
“Beyond our organization, many of our grantees — small nonprofit arts organizations — are already facing difficult financial decisions,” United Arts public relations manager John Craven told CPP in an email. “Some are scaling back on programs that support their mission but are not central to their signature or flagship offerings as they navigate the uncertainty around federal, state and local funding.
“The combined pressures of this funding uncertainty and economic instability are making it increasingly difficult for these organizations to plan for the future.”
Counting the costs for nonprofits
There are around 10,000 nonprofit organizations in North Carolina. A recent analysis from the nonprofit research center Candid found that 9,946 organizations filed a full 990 tax form at least once between 2021 and 2023.
Of those organizations, just over one third reported receiving at least one government grant in their most recent tax filing.
All in all, North Carolina nonprofits received more than $7 billion from the government through grants.
The Urban Institute, a think tank based in Washington, D.C., further analyzed nonprofit grant data and broke it down at the county level. Researchers found that the organizations in rural regions of the state benefit most from government funding.
The analysis further indicated that nonprofits in rural counties such as Anson, Jones and Northampton would have the biggest financial gap to fill if the Trump administration cost them government grants.
All of the nonprofits in eight North Carolina counties — Anson, Gates, Martin, Montgomery, Perquimans, Person, Sampson and Stokes — would have operating deficits if their government grants were taken away. That’s 46 nonprofits in all.
In 98 of North Carolina’s 100 counties, at least half of the nonprofits would experience an operating deficit if not for their government funding.
As far as subsectors go, the financial uncertainty that comes with the potential loss of government funding is indiscriminate. The Urban Institute found that 75% of education nonprofits, 73% of human services nonprofits and 64% of arts nonprofits in the state would operate in the red without their government grants.
Hospitals and nonprofits related to religion and the environment had the smallest share of organizations reliant on government funding, although that number was still north of 40%.
A ‘fluid’ situation
Although nonprofits are preparing to potentially lose grant money from the Trump funding freeze, that hasn’t been the reality yet.
Two of North Carolina’s most important pass-through funding agencies — the Department of Health and Human Services and the Department of Public Safety — told CPP they’ve made all scheduled payments to subgrant recipients this year.
Both award millions of dollars worth of subgrants to nonprofits across the state each year.
A spokeswoman for the Department of Health and Human Services said that the agency had experienced unexpected delays to some federal payouts, although they were eventually received.
“There have been instances when payments were unexpectedly delayed as well as isolated payments that were under review by federal counterparts for a short period of time,” the spokeswoman said.
The Health and Human Services grants that were put under federal review included money intended to support mental health services and substance-abuse treatments.
At the same time, neither agency denied that they experienced complications related to the federal funding freeze.
“Presently, (the Department of Public Safety) is not having difficulty accessing funding,” a spokeswoman told CPP in an email last week. “The situation is fluid, and we will continue to monitor our ability to drawdown our federal reimbursements and adjust or modify our operations as necessary.”
www.thecentersquare.com – By Alan Wooten | The Center Square – (The Center Square – ) 2025-03-28 12:56:00
(The Center Square) – Persistent dry and windy conditions, along with downed trees from Hurricane Helene six months ago, remain troublesome for wildfires in the Carolinas.
The Table Rock Fire, largest of several, has crossed from Pickens County in South Carolina to Transylvania County in North Carolina.
In an update from the South Carolina Forestry Commission on Thursday evening, the Tabe Rock fire grew significantly during the day and the Persimmon Ridge fire only modestly. The Table Rock fire is estimated 8,679 acres and the Persimmon Ridge fire 1,992 acres.
Three counties are home to four other significant size fires in the Tarheel State: Deep Woods and Black Cove in Polk County, Alarka in Swain County, and Rattlesnake Branch in Haywood County.
“Excessive storm debris and timber damage from Hurricane Helene has created many challenges for firefighting efforts,” a release from the North Carolina Forest Service said Friday morning. “One factor is the loss of tree canopy. More ground cover is receiving direct sunlight, accelerating the rate in which fuels dry out.”
The Black Cove fire that originated March 19 is 3,288 acres in size and 17% contained, the Forest Service says. It is approximately 2 miles northeast of Saluda in the Green River Gorge.
The Deep Woods fire, also a March 19 start, is 3,373 acres in size and 30% contained, the Forest Service says. It is about 5 miles northwest of Columbus in the Green River Gorge and the adjacent Holbert Cove community.
The Fish Hook fire that began March 20 is 199 acres in size and 95% contained, the Forest Service says. This fire is about 5 miles northwest of Mill Spring near Lake Adger.
Other fires of size are burning near Sylva and Leicester.
Burning bans are in effect throughout North and South Carolina.
SUMMARY: A wildfire in Western North Carolina has become the highest priority in the U.S. The Black Cove Complex fire near Saluda has burned over 6,500 acres, with over 500 firefighters working to contain it. Authorities warn residents in mountain communities, like Buncombe County, to prepare evacuation bags in case orders are issued. The fire has triggered statewide concerns, with varying levels of fire danger across the state. A statewide burn ban is in effect, and officials are hopeful that rain expected this weekend will help control the blaze. Aircraft are being used to drop water and fire retardant to assist firefighting efforts.
More firefighters are arriving in Western North Carolina now that the Fire Service says a fire burning there is now the highest priority in the U.S.
SUMMARY: In late March 1963, Alfred Hitchcock’s thriller *The Birds* premiered, and in honor of its anniversary, Scott Mason revisits Elm City’s own bird phenomenon. Every afternoon, flocks of hundreds of thousands of starlings and blackbirds gather, creating a stunning, synchronized spectacle. The birds swarm the same fields at the same time, a behavior observed for over 20 years. Local residents are captivated by the sight, though some remain curious about the birds’ nature. Experts believe the birds flock for food and protection. This “bird ballet” continues to awe those lucky enough to witness it each day.
It was around this time in March 1963 when the movie “The Birds” premiered. The Tar Heel Traveler revisits Elm City’s very own thrilling version of the birds.
