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How the proposed federal budget may affect Georgia Nonprofits

President Trump’s first budget was released yesterday and analysis shows deep cuts to many programs that fund nonprofit activities.  Many of these are quite extensive, such as the complete elimination of the Community Development Block Grants, National Endowment for the Arts, Legal Services, After school programming, etc. 

Obviously, these cuts are disturbing.  We are digging into the specifics of the budget and the scope of these cuts on Georgia nonprofits specifically.  We will be releasing additional information soon, however we wanted to provide a quick overview of the top-line cuts to our nonprofit partners.

Here is the breakdown of some of the President’s proposed budget cuts by department (courtesy of The Washington Post) along with GCN’s quick analysis of the effects in Georgia.

NOTE:

GCN is convening a Nonprofit Federal Issues Coalition to coordinate a response from our state relative to these budget cuts.  Please sign up to be included, receive meeting and call-in information here.

GCN is also providing free scenario planning every Friday for members that are impacted.  Please contact consulting@gcn.org or 678-916-3082 to sign up for a session with one of our senior consultants.

Please visit www.gcn.org  for updates and materials.  

Agriculture Department

  • Cuts Women, Infants and Children nutrition assistance (WIC) from $6.4 billion to $6.2 billion
  • Cuts $95 million from the Rural Business and Cooperative Service

Context: Rural Business and Cooperative Service includes nonprofit agencies working on rural housing and community development initiatives. Rural community development corporations (housing) Neighborworks and Rural LISC are two large entities that rely on this funding.

Commerce Department

  • Cuts coastal and Oceanic research grants to universities
  • Cuts Economic Recovery Project grants and public works grants to local communities

Context: These Economic Recovery Project grants help to assist communities in which industry changes have upset employment. When industries leave these people rely on nonprofit services.

Education Department

  • Cuts $3.7 billion in grants for teacher training, after-school and summer programs, and aid programs to first-generation and low-income students
  • "Significantly" reduces federal work-study aid to college students

Context: Millions of low-income kids will no longer have access to afterschool and summer programs. Low-income kids will pay more to attend college or protract college completion or simply be unable to afford college. 

Nonprofits that provide services to these populations will have lower enrollments.Nonprofit educational institutions will feel the loss of these subsidies that often accompany aid packages to qualifying students.

Energy Department

  • Cuts $900 million from the Office of Science
  • Eliminates the Energy Star, Weatherization Assistance Program, ARPA-E, Advanced Technology Vehicle Manufacturing Program, and Title 17 loan guarantees

Context: These cuts impact universities and research institutions; conservation nonprofits and those nonprofits providing housing rehab and energy savings services are also impacted.

Department of Health and Human Services

  • Decreases funding for the National Institutes of Health and certain programs to train health professionals

Context: These cuts will affect nonprofits that delve into research and disease response of diseases like Zika virus, parasitic diseases and others whose negative impacts can be felt in Georgia.

Department of Homeland Security

  • Cuts $667 million from grant programs to state and local agencies, including pre-disaster mitigation grants and counterterrorism funding

Context: Emergency Management and Assistance programs in states and local communities will be cut.  These agencies plan and implement response to natural disasters and potential threats to important assets and institutions like ports, airports, water infrastructure, etc.

Department of Housing and Urban Development

  • Eliminates the $3 billion Community Development Block Grant program
  • Eliminates the HOME Investment Partnerships Program, the Choice Neighborhoods program and the Self-help Homeownership Opportunity Program
  • Eliminates the $35 million of funding for Section 4 Community Development and Affordable Housing

Context: Nonprofits in local communities receive funds through the Community Development Block Grant including disaster recovery, and neighborhood stabilization programs. They use this money to develop and preserve decent affordable housing, provide services to the most vulnerable in our communities, and create and retain jobs. The loss of this program will impact many nonprofits in Georgia working on housing, homelessness, housing, and affordability etc.

The Section 4 program provides funding to Habitat for Humanity International, LISC, and Enterprise Community Partners to enhance the technical and administrative capabilities of CDCs and Community Housing Development Organizations to carry out community development and affordable housing activities that benefit low-income persons.

Interior Department

  • Eliminates funding for the 49 National Historic Sites

Context: Parks, historic sites and ultimately tourism will be negatively impacted.

Labor Department

  • Eliminates the Senior Community Service Employment Program, which helps low-income seniors find work
  • Closes some centers for Job Corps, a job-training program for disadvantaged youth
  • Eliminates grants that help nonprofit groups and public agencies pay for safety and health training

Context: Each year, the Senior Community Service Employment Program enables thousands of low-income seniors to earn and learn while working in local programs serving their community each year. These jobs enable thousands to make ends meet.

Job Core Centers provide vocational training and GED attainment services among other activities. Some nonprofits operate them.

These safety and health training grants help employers, but primarily low wage/multi-language workers get trained to know they have a right to safe workplace conditions. Nonprofits often provide this training.

State Department, USAID and Treasury International Program

  • Eliminates climate-change prevention programs, including pledged payments to U.N. climate-change programs
  • Reduces funding for U.N. peacekeeping
  • Reduces funding for development banks such as the World Bank
  • Reduces most cultural-exchange programs, but keeps the Fulbright Program

Context: Nonprofits working internationally will be hurt by these cuts; nonprofits providing exchange programs that promote understanding and positivity between our nation and others will be cut. They will also negatively impact some educational, research and cultural/arts programs performing these activities.

Transportation Department

  • Cuts to rural infrastructure, airports, and Amtrak. These cuts will deliver another blow to rural and low-income people and communities and will reduce access.

Treasury Department

  • Eliminates grants for Community Development Financial Institutions, which provide financial services in economically distressed neighborhoods

Context: Community Development Financial Institutions provide loans to small businesses and start-up capital; they work in low-income and rural communities but also serve urban communities. 

Environmental Protection Agency

  • Eliminates more than 50 programs and 3,200 jobs
  • Discontinues funding for international climate-change programs
  • Cuts funding for the Office of Research and Development in half
  • Cuts funding for the Superfund cleanup program and the Office of Enforcement and Compliance

Context: The scope of these cuts to nonprofit agencies is sweeping – impacting areas from coastal and wildlife preservation to critical research and data projects on climate and pollution (asthma, cancer, etc.).

NASA

Context: Seems to cut programs that are tied to climate change research.

Arts and cultural agencies

  • Eliminates all $148 million for the National Endowment for the Arts and all $148 million for the National Endowment for the Humanities
  • Eliminates the $230 million Institute of Museum and Library Services
  • Eliminates the $445 million for the Corporation for Public Broadcasting, which supports public television and radio, including PBS and NPR

Context: Need we say more?  Mr. Rogers, museums, productions, etc.

Eliminate funding completely for these agencies (not a full list)

  • Appalachian Regional Commission  - impacts Georgia
  • Corporation for National and Community Service
  • Corporation for Public Broadcasting
  • Delta Regional Authority
  • Institute of Museum and Library Services
  • Legal Services Corporation
  • National Endowment for the Arts
  • National Endowment for the Humanities
  •  Neighborhood Reinvestment Corporation
  • U.S. Interagency Council on Homelessness

Context: Each of these eliminations has serious impact on many hundreds of nonprofits in Georgia. 

Photo Credit: By Zach Rudisin - Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=20727816

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