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Nonprofits chilled by federal budget freezes and cuts

In freeze tag, players must freeze if the person who is “It” tags them during the game. 

Nonprofits all over the country experienced something very similar on Jan. 27, 2025, when the Trump administration issued an order to freeze grant money and contracts, effective at 5 p.m. the next day.

It was definitely not a game to them. For the nonprofits affected by the freeze, it was catastrophic.

Federal grants and state grants with matching federal funds make up a sizable part of most nonprofit’s budgets. The Chronicle of Philanthropy reports that “government funding makes up about 33% of the revenue flowing into the nonprofit sector annually.”

Without those federal funds, nonprofits were faced with the prospect of making difficult decisions like cutting staff, cutting programs or being forced to limit important services to people in need.

When the National Council of Nonprofits and other groups filed a lawsuit to prevent the freeze, a judge ruled in its favor. Attorneys general from 22 states and the District of Columbia also sued the administration to block the order, according to the Chronicle of Philanthropy.

The Trump administration lifted the freeze on Jan. 29. Many nonprofits breathed a sigh of relief. But, they still felt uneasy about the future and with good reason.

Local nonprofits such as The South Suburban Council on Alcoholism and Substance Abuse; Anew, Building Beyond Violence and Abuse; Aunt Martha’s and Respond Now all felt the sting. Here are their stories. 

The South Suburban Council on Alcoholism and Substance Abuse

When asked if the federal freeze and budget cuts would impact his agency, Myron Graham, CEO and president of The South Suburban Council on Alcoholism and Substance Abuse, responded with a resounding yes.

“The federal government has put in more insecurity into a space that was already pretty shaky,” said Graham, who is a LCSW.

Almost all of his agency’s funding comes from the state, specifically state grants that have a federal match, Graham said. Graham said that they are in full budget, grant writing season. But, the freeze definitely impacted them. Everyone is in a holding pattern, he said.

“If the state would release the governor’s budget without the block funding included, it would be cataclysmic,” Graham said. “It’s not something that we could recover from. It would be significant cuts, even if the state could pay its part.

“It (the cuts) is especially targeted toward substance abuse organizations.”

Myron Graham
Myron Graham

The Council, in East Hazel Crest, offers residential treatment services, detox and withdrawal services, crisis destabilization, stabilization and transition services, a men’s and women’s recovery home, intensive outpatient services and DUI evaluation and education.

“Our mission is to serve patients regardless of their ability to pay,” said Graham, who lives in Flossmoor with his wife. “We don’t turn anyone away. We are here for the community. We are the largest substance abuse center in the Southland. All you have to do is have a willingness to want change.” 

But all of those services require staff and cost money. Graham said one of the biggest challenges for the Council is staff retention. Many staff members have the heart for the work and love their jobs, but aren’t able to make ends meet on a nonprofit agency’s salary. Graham said he understands the realities of mortgages and other bills and would like to be able to pay more.

“I don’t want to say, ‘Hey, I’m going to do a cost of living increase and have to lay you off three months later,” he said.  

Despite the obstacles, Graham remains true to the Council’s mission.

“Everyday at the Council, we save lives. A person walks in who would have overdosed. But because he walked in, for one more day, we were able to keep him alive,” Graham said. “These are people that society has given up on. They have a renewed chance at life (at the Council.)”

Anew, Building Beyond Violence and Abuse

“As of right now, the funds are flowing as they normally have,” said Jennifer Gabrenya, CEO of Anew, Building Beyond Violence and Abuse. Anew is a domestic violence nonprofit that has been a part of the community for 45 years, Gabrenya said.

It is a safe haven for survivors of abuse. Anew offers free counseling, court advocacy, emergency services, domestic violence advocacy, partner abuse intervention programs, housing, rapid rehousing and transitional housing. The rapid rehousing is a joint collaboration with the Crisis Center of South Suburbia, she said.

Gabrenya said that the agency has not had to do any layoffs. It has still been able to serve its clients.

“We’ve been spared for now. We think,” Gabrenya said. “It’s so uncertain, so tentative.”

Grabrenya said that federal funding accounts for 33% of Anew’s overall budget; 77% of its housing budget.

“The chief concern is our housing program. We get most of our housing money from HUD,” she said. “We worry that the HUD staffing cuts will impact us.”

In January, Gabrenya said that access to their funds had been turned off because of the freeze.

They were relieved when the funding was restored.

“We have received award letters. We have received communication that they’re going to do the contracts in waves,” she said. For example, one may start in June and another in January.

Gabrenya said that based on the executive orders, she anticipates that government agencies like HUD are going to be changing the language in the contracts. She isn’t sure what that language will be.

As a pre-emptive move, Anew is trying to prepare for any budget cuts in the future.

“We’re working with our board to have some contingency plans. We’re reached out to our private funders and started some preliminary discussions. Obviously our goal would be to save all of our programs,” Gabrenya said.

The community also has been very supportive over the years, she said.

Anew Community Education Advocate Bo Hauptly gives a presentation at Governor's State University. (Provided photo)
Anew Community Education Advocate Bo Hauptly gives a presentation at Governors State
University. (Provided photo)

People have donated goods, provided gift cards, cash donations and more, Gabrenya said. A couple of years ago, they asked for community support to provide five Christmas trees for a family in transitional housing. Within an hour, someone said that they were bringing five trees and all of the trimmings, Gabrenya said.

“Our community absolutely excels at that,” she said.

Gabrenya said that right now the motto at Anew is to “plan for the worst and hope for the best.”

“We’re like our clients. They don’t give up. They inspire us. They go through some unimaginable things,” she said. “Our mission is to end the cycle of violence in our community. That is why this work must continue. People deserve to be safe at home.”

Anew will be hosting a gala to raise money on Oct. 3. Tickets for the Keeping Dreams Alive Sneaker ball are available on the website. Donations are tax deductible. 

Respond Now 

“When the grants were frozen for about a day, that was a very stressful 24 hours,” said Carl Wolf, executive director for Respond Now.

Respond Now, located in Chicago Heights, was founded in 1969. It provides mortgage and rental assistance, utility bill assistance, prescriptions, medication, food and more to families in 22 Chicago Southland communities, according to its website.

“I think the mood is one of resistance, forging ahead, creativity and concern. There’s worry,” he said. “There’s a concern that what has not happened as of yet, will happen in the immediate or near future.”

Two Respond Now programs have been defunded — the fresh produce program and the health outreach for the unhoused population and the community at large, Wolf said. 

The fresh produce program was funded by the United States Department of Agriculture (USDA). Respond Now was able to get deliveries two days a week from a farm in Sauk Village. Its loss will impact about 300 families, Wolf said.

The health outreach program received its funding from the Centers for Disease Control (CDC). Respond Now received notice that funding for that program would be cut “effective immediately,”

“That affects our ability to provide health outreach to the community,” Wolf said. The agency is looking for other resources and the staff for that program have been reassigned, he said.

“I don’t think I’ve ever seen anything that is so all encompassing. We’ve seen programs discontinued in the past. But it was never an existential threat,” Wolf said. “It just means that instead of trying to figure out how we’re going to pivot with one program, it’s forcing us to analyze what our pivot will be for all of our programs.

On a positive note, Wolf said that its state funding has been secure.

Respond Now has seen a lot of growth in the last 10 years, particularly when it comes to health services, Wolf said.

“When the pandemic hit, we realized that we had a role to play in getting health and COVID-19 information out to the communities that we serve,” Wolf said. “We’re a trusted entity to get people information from everything to healthy eating to diabetes to heart disease.”

The agency continues to provide specific medical guidance to the unhoused, Wolf said. 

The agency has been providing supportive housing for 10 years. In the last five years, Wolf said its ability to do so has doubled. Respond Now also provides a secondary shelter option, offering 25 rooms for those who are homeless. Homelessness prevention is a key goal.

In addition, Respond Now offers a benefits outreach program and a food pantry that has gone from being open three days a week to five days a week.

But Wolf said, “it’s not nearly enough.”

Respond Now is hosting a fundraiser on May 30 from 6 to 8 p.m. at Sergeant Means Park in Olympia Fields. All dollars raised will be matched for the Double Match for Hunger. The donor is anonymous. Tickets are $40. There will be a D.J., appetizers will be served and a silent auction will be held. For more information, visit the agency website or call (708) 755-4357.

Aunt Martha’s 

Aunt Martha’s CEO Raul Garza has been closely following the Trump administration’s executive orders. When the agency received word of the grant freezes in January, it gave them pause. But the freeze was quickly reversed and they were able to receive funding. 

“We are bracing to see what the changes are and to adapt,” Garza said.

The agency receives 62% of its budget from federal funds. Those funds cover the many services the agency provides. Services include healthcare services for men, women and children, including prenatal care for pregnant women and family planning services. It offers community support to youth such as crisis services and it helps immigrant families, too. Aunt Martha’s has its headquarters in Olympia Fields. It has facilities in Hazel Crest, Chicago Heights and Harvey to name just a few.

The impact a freeze would have on its services would depend on several factors, Garza said.

“We can’t quantify the impact without knowing the specifics of any cuts, but our goal is always the same: to protect the people and communities who rely on us,” said Garza. “We take that responsibility seriously, and we’ve built the organization to adapt when circumstances change.” 

Garza added that without more details, he wasn’t able to say how many people would feel the impact of any budget cuts.

“Until we understand the details of any potential cuts, it’s impossible to estimate the number of people affected,” he said. “What won’t change is our approach. Aunt Martha’s will continue serving everyone who walks through our doors regardless of their circumstances or ability to pay.”

Garza said that there has been a reduction in state-funded Medicaid and that immigrant patients who were receiving Medicaid will no longer be covered as of July 1. 

After the budget freeze and thaw, Garza took a proactive stance. He said that he has done several roundtable discussions with political leaders. He met with Anna Moeller, the state representative from Elgin who told Garza that she is very committed to supporting her community. He also spoke to U.S. Reps. Delia Ramirez (D-Ill) and Darin LaHood (D-Ill).

A welcome but unexpected $9 million grant from the MacKenzie Scott Foundation also gave Aunt Martha’s a little fiscal breathing room. 

When someone from Mackenzie Scott first reached out, Garza said at first the staff thought it was a prank. Aunt Martha’s reached out to Chicago Community Trust and learned that the offer of support was genuine. Garza immediately responded to the MacKenzie Scott representative and set up a meeting. MacKenzie Scott’s staff explained that they try to be very discreet and keep things confidential until after they talk to an agency’s CEO.

“I said OK. I respect that,” Garza remembers. Soon after that meeting, the agency received the funding, Garza said.

“Whatever we do, we want to make sure it’s sustainable,” said Garza, when asked about how the agency would use the Mackenzie Scott funds.

“I think that Aunt Martha’s has done the right thing to position ourselves in terms of financial stability,” he said.

In April, Garza received more good news.

“I’m happy to say that yesterday we received formal notification that our family services would be funded,” Garza said. Aunt Martha’s has been a federal grantee for Title 10 family planning services for 50 years, he said.

Whatever happens, Garza said he and his staff are committed to continuing their work in the community. He said the south suburbs aren’t just where they work. For many it’s home.

“We’ve cared for children who grew up, came back as adults and now bring their own kids to us. That kind of trust is rare,” Garza said. “It speaks to the connection we have with the people we serve and the responsibility we feel, especially when times are uncertain.”

The South Suburban Housing Center

At a Feb. 20, news conference in Hazel Crest Village, Mackenzie Popravak said the effect of the Jan. 28 federal grant freeze was immediate and the situation remains uncertain. Popravak serves as director of communications and outreach for the South Suburban Housing Center in Homewood. The event was hosted by U.S. Rep Robin Kelly (D-Ill.), who represents Homewood and Flossmoor.

“They said it was going to happen at five o’clock that day (Jan. 28). We were doing our regularly scheduled deliverable turn in for our education outreach grants for fair housing,” Poparvak said. “And we were unable to obtain our funds or log into the system at all. We were completely locked out.”

She said access eventually was restored, but some programs remain in limbo.

“Our programs and services for homeowners that are facing mortgage distress and foreclosure or looking to enter ownership and report any housing discrimination are kind of hanging in the balance as we wait to see what’s gonna happen,” she said. “We’re still going to work towards our mission and offer the programs and services that we have, however, we’re kind of waiting to see how much it’s going to impact the future.”

Part of the uncertainty comes from grant applications the agency normally would have gotten notification about, but housing center officials have not heard whether the grants have been awarded.

Eric Crump contributed the South Suburban Housing Center section of this story.

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