Uncertainty in Federal Funding Could Jeopardize Linn County Nonprofits, Survey Finds

The recent upheaval of the federal funding landscape is leading to significant uncertainty – and potentially dire consequences – for Linn County nonprofits and those they serve, according to survey results gathered by the Greater Cedar Rapids Community Foundation.

Federal grants and contracts enable local nonprofits to provide a range of services in our community, such as affordable housing development, meals for seniors, and support for people with disabilities. The disruption, reduction, or discontinuation of federal funds would force nonprofits to lay off case workers, discontinue programs, and potentially cease operation entirely, according to the survey.

“Nonprofits in Linn County are an absolutely essential part of our community,” said Karla Twedt-Ball, President & CEO of the Community Foundation. “Cuts in federal support have an impact beyond nonprofits – this affects our entire community, and especially the most vulnerable among us.”  

The Community Foundation distributed the survey to area nonprofits organizations in February 2025, in partnership with the United Way of East Central Iowa. The survey yielded 64 responses, of which 59 represented nonprofit organizations serving Linn County.

“Concern is running high in our nonprofit sector since the proposal of cuts and freezing of funding was first proposed. This survey allows us to quickly grasp what impacts these decisions will have on our sector and, most importantly, on the individuals and families in our community struggling to make ends meet. A strong nonprofit community ensures a strong overall community,” said Kristin Roberts, President & CEO of United Way of East Central Iowa.

Key findings include:

Approximately two-thirds of Linn County respondents (64 percent) said their organization receives federal grants or contracts. This closely resembles national data gathered by the Urban Institute.

For some Linn County nonprofits, federal grants and contracts are a substantial portion of their annual budgets.

• Nearly one-third of respondents (31 percent) said federal grants and contracts make up 20 percent or more of their organizations’ annual budgets – and 10 percent of respondents said federal funds comprise most (60 percent or more) of their organizations’ budgets.
• One-third of respondents (33 percent) said federal funds comprise 20 percent or less of their organizations’ annual budgets.
• Slightly more than one-third of respondents (36 percent) said their organizations do not receive any federal funds.
• In Linn County, nonprofits across all sectors receive federal grants and contracts. However, federal funds make up a higher portion of the budget at nonprofits in the human services and environmental sectors than at nonprofits in the arts and culture and public benefit sectors.  

If federal funds are disrupted, reduced, or discontinued, Linn County nonprofits described the tangible impact on their work:

• “If [federal funds are] frozen, we could operate as is for roughly four months before needing to re-evaluate the status of agency programming and program staff (equivalent to 10 FTEs or 2/3 of case managers). If rescinded or canceled, we would need to consider the elimination of all federally funded programming. This could impact programs such as our emergency shelter, Veteran programs, street outreach, permanent supportive housing, and rapid rehousing program, essentially transitioning our organization from a comprehensive homeless service agency to an employment assistance organization.” Alicia Faust, Willis Dady Homeless Services
• “It would significantly raise the possibility of layoffs and decrease our overall impact in the community … Our participants would be impacted by a lack of a continuum of care.  Families and children would revert back to generational poverty and the chances of having a healthy and ‘successful’ life would decrease significantly.” Alejandro Pino, YPN
• “We have already reduced staff by almost half and we have had to use money that won’t be reimbursed to fulfill our commitment to the people who have already arrived and rely on us.” Rachel Cohen, Catherine McAuley Center
• “Our organization will have to close and our staff laid off should funding be canceled or rescinded … [Our services] help disabled people in eastern Iowa become more independent and achieve their goals (applying for benefits, learning to become self-advocates, improving the accessibility of their homes, learning the skills needed to live independently, etc.)” Kaydee Layne, Access 2 Independence of the Eastern Iowa Corridor
• “We are only able to provide Meals on Wheels and congregate dining because they are fully funded. A loss of funding would leave us scrambling to find a way to feed local seniors. A loss of USDA food for the pantry would significantly impact our ability to provide healthy food to our neighbors.” Nicole McAlexander, Southeast Linn Community Center

(Each of the nonprofit leaders included here has granted the Community Foundation permission to share their responses.)

While philanthropy cannot supplant government funding, it is still an essential part of a nonprofit organization’s budget. If you have organizations or causes that you care about, consider increasing your philanthropic support. In addition, consider calling or writing to your congressional delegation to urge their support of the nonprofit sector.