Michigan nonprofits share impacts and uncertainty brought by pause in federal funding

By: Kyle Davidson - March 5, 2025

Kelley Kuhn, the executive director of the Michigan Nonprofit Association underscored the testimony offered by other nonprofit leaders, underscoring their importance to Michigan communities.

“Michiganders rely on nonprofits to support their health, safety and well being, especially when challenges arise. You have heard from several of those today. During a time when more than 40% of households in Michigan struggle with the costs of the basics, the charitable sector’s role in driving job creation and economic growth is indispensable and unmatched by addressing well-documented and data-proven gaps that keep people from fully participating in work, school and every facet of life,” Kuhn said.

“Nonprofits, as has been stated, operate on very tight budgets. Most do not have large amounts of operating capital, and we estimate that most cannot survive a freeze or a pause for more than three to six months,” Kuhn said.

When news broke about the freezes, Head Start programs, meal programs for seniors, services that support immigrants, homeless shelters, veterans programs — specifically those helping with housing, accessing veteran benefits, such as health care — domestic violence shelters, farmland and farming projects and projects to protect our natural resources, were just a few of the various organizations who reached out to the Michigan Nonprofit Association, Kuhn said.

“The administration’s attempts to withhold disbursement of dollars already committed by the federal government have already led to the disruptions and lives of working families in Michigan. We strongly oppose such broad and arbitrary action that, without due process, contradicts acts of Congress and upends the lives of everyday Michiganders throughout the state,” Kuhn said.

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