When the Executive Director of DC After-School All-Stars (ASAS) received notice of federal funding cuts, she didn’t just see numbers on a page—she saw the faces of the 450 children her organization serves annually across six sites. For over a decade, ASAS has provided after-school programs and summer camps in the District, serving as a support for families who rely on these safe and enriching spaces. Now, with a 60% cut in federal funding, representing $406,000, she faces an impossible choice: cut staff or end programs altogether.
ASAS’s story is not unique. Across the DC area, small, community-based organizations are reeling from the unprecedented wave of federal budget cuts that took effect earlier this year. Nationally, nonprofits report an average 23% decline in federal grants, but in DC, cuts are often twice as deep—40% or more—creating a perfect storm for the District’s most vulnerable residents. “It’s like a domino effect,” said Daniela Grigioni, Executive Director of After-School All-Stars. “We’re not just losing dollars. We’re losing the ability to be here for kids who have nowhere else to go.”
The COVID-19 pandemic and economic instability have had a significant impact on local nonprofits over the past several years. However, with shifting government priorities at both the federal and local levels, community-based organizations face unprecedented challenges that threaten their very existence. The Mayor’s 2026 budget proposal includes cuts and reduced funding for several programs that support children and families in the District of Columbia, totaling millions of dollars. After hearing hours of testimony from hundreds of DC community members, the DC Council is now working to mitigate the impact by restoring some of the cuts. It is expected to complete their reconciliation and finalization within the next couple of weeks. However, the resulting collateral damage of federal cuts, coupled with the inevitable reduction in DC services, will be the loss of valued nonprofit organizations in our community. Fair Chance’s data, along with national reports, confirm that most nonprofit service providers often operate on thin margins and rely heavily on federal and local funding streams to sustain their operations. When those resources disappear, the consequences ripple far beyond the nonprofit sector.
Local nonprofits do far more than provide social services. They are the backbone of our community—delivering essential resources, building trust, and ensuring that every resident has a chance to thrive. When small nonprofits suffer, the ripple effects extend to our neighborhoods, schools, and community networks. “This crisis isn’t just about dollars—it’s about equity and opportunity. We’re talking about whether kids have a safe place to go after school, whether families have a support system in a crisis, whether seniors can get a meal,” said Gretchen Van der Veer, Steering Committee Member of The Coalition for Nonprofit Equity (CNE)[1] and Executive Director of Fair Chance.
Grigioni shared how their mission has always been to provide comprehensive after-school programs for children in underserved communities. “We believe every child deserves a safe space after school—one where they can receive academic support, mentorship, and opportunities to explore their passions,” Daniela explained. These programs not only help kids stay on track academically but also give them a sense of belonging and hope. However, recent funding cuts have significantly impacted After-School All-Stars. AmeriCorps funding, which supported many of their dedicated staff and volunteers, has been slashed dramatically. “This loss isn’t just numbers on a page,” Daniela emphasized. “It means fewer caring adults working directly with our kids, fewer enrichment opportunities, and an even greater struggle to keep up with demand for our services.” As a result, After-School All-Stars is facing the reality of needing to scale back key programs and rethinking how to keep its mission alive in the face of this uncertainty. While she also receives grants from the city, funding for out-of-school time programs appears to be at least level-funded at 2025 levels, which is a relief.
While many advocacy organizations and coalitions stepped up to mobilize residents to attend city budget hearings and called on neighbors to get involved in asking the Council to restore specific programs, CNE is rallying support for the overall health of the nonprofit sector. Ward One Councilmember Briane Nadeau has introduced with Councilmember co-sponsors Matthew Frumin, Janeese Lewis George, and Robert White, B26-0249 – the Nonprofit Services Preservation Act to ensure the fair and consistent application of indirect cost rates to cover operational expenses for nonprofits delivering services under DC contracts and grants. As nonprofits cope with smaller budgets, staff layoffs, and reduced services, they should not have to continue subsidizing the City for the contracts and grants that are awarded. CNE is working to ensure that grassroots leaders and the foundation community support the bill, which also establishes a nonprofit relief fund to address emergency funding gaps. Calling on foundation boards to reconsider traditional grantmaking models. “There’s no question we’re in a crisis,” Van der Veer said. “We need to see foundations acting more like first responders than gatekeepers right now.” Local funders have convened emergency meetings to coordinate long-term strategies, while national nonprofit advocacy groups are exploring legal challenges to the federal cuts, arguing that abrupt changes to longstanding funding streams could violate commitments made to vulnerable communities.
As DC prepares to implement a new 2026 city budget and foundation boards meet to set 2025 priorities, nonprofit leaders are urging residents to get involved. They are calling on neighbors to support local nonprofits and reconsider what it means to give beyond a single check. It’s a test of the city’s social safety net—and a reckoning for those who care about it. “This is about reimagining how we take care of each other when the federal government steps back,” said Van der Veer. “It’s about whether we’re willing to fight for these kids, not just because it’s charity, but because it’s what they deserve.”
How you can help: support local advocacy groups like CNE and direct service providers like ASAS push foundation boards to adopt emergency funding protocols, volunteer your time or resources to nonprofits losing federal support, and advocate for policies that protect critical community services. Together, we can ensure that DC’s nonprofits—and the communities they serve—don’t just survive but thrive for years to come.
For Funders: Local funders have a unique and urgent role to play. Your investment today is an investment in the long-term health and vitality of our region. We recognize that many local funders already care deeply about our community. Now is the time to act boldly and decisively. Funders can provide multi-year, flexible funding to help nonprofits navigate federal cuts and new challenges. They can listen to and co-create solutions with nonprofits, ensuring that grantmaking aligns with the realities on the ground. They can champion equitable, community-driven grantmaking practices that recognize the expertise and lived experiences of nonprofit leaders. Supporting this work is not just charity—it’s investing in the future of our city.
[1] The Coalition for Nonprofit Equity represents the DC local nonprofit sector coming together around collective action to address unfair DC government practices that negatively impact the sustainability of the nonprofit service providers that residents rely on day-to-day
