Second Wave Michigan

How Michigan Nonprofits are Navigating Federal Uncertainty

Layla McMurtrie | May 19, 2025

Across Michigan, nonprofits are feeling the pressure as a wave of federal uncertainty under the new administration ripples through funding streams, partnerships, and long-term plans.

At the center of supporting organizations through navigating this storm is the Michigan Nonprofit Association (MNA), led by president and CEO Kelley Kuhn.

“The biggest role that we have is to raise awareness about what's happening and the impact that it's having for nonprofits specifically,” Kuhn says. “And then, more importantly, how that trickles down, not just for nonprofits, but to the communities that nonprofits serve.”

The challenges began early in 2025, when several executive orders disrupted long-standing funding streams, sparking confusion and alarm as organizations lost access to resources they had already budgeted for—and were actively using—to fund vital services.

Some organizations had to make difficult choices overnight, even cutting long-established programs.

“For many of the organizations that were impacted, they were facing decisions of whether or not to pay their payroll or pay their bills,” Kuhn says. “Those were real decisions that in that moment, leaders in the sector were faced with because nonprofits operate at very small margins.”

She adds, “They have relied on these federal funds for decades to run the programming and services.”

Even as some funding resumes, nonprofits now face delays, new administrative hoops, and agency staff turnover.

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Original Article: https://www.secondwavemedia.com/features/michigan-nonprofits-navigate-federal-cuts.aspx