Before 2025, Jesse Herrera鈥檚 nonprofit was picking up momentum.
The five-year-old startup, a social design studio focused on developing strategic responses to societal challenges in Fort Worth, had secured several large grants to support its modest budget of about $400,000.
This was enough to pay for day-to-day operations, one full-time staffer and two part-time salaries, one of which Herrera receives, although he devotes about 40-50 hours a week to CoAct.
Then came January and President Donald Trump鈥檚 emphasis on reducing government spending. The administration鈥檚 efforts to cut out of the federal budget 鈥� a mission largely manifested in the Department of Government Efficiency, or DOGE 鈥� are significantly impacting grants spending and Fort Worth-area nonprofits鈥� ability to secure federal and state aid.
鈥淭his has had a substantial effect on our ability to operate, and it鈥檚 got all of us questioning if we need to go back to the private industry and start looking for work,鈥� Herrera said.
CoAct鈥檚 budget strain is shared by nonprofits across the country, with North Texas nonprofits losing an estimated $127 million in funding during the first half of 2025, according to a survey conducted by the , and .
The losses, which included $71.6 million in federal money, mostly impacted nonprofits that provide social services, education programs for children, housing services for the homeless and meals for the elderly and homebound. The survey included 700 nonprofits across the region, 120 of which were Tarrant County-based.
Nonprofits are hoping to make up some fundraising losses on Thursday鈥檚 , but Herrera is wary that people won鈥檛 be as generous as in previous years due to economic uncertainty.
More than 140,000 North Texas residents will lose services from nonprofits or see them reduced, according to the report.
About 56% of survey respondents reported a decrease in funding.
Federal funding was lost in the form of canceled or delayed federal contracts and grants. Nonprofits with budgets over $10 million, such as universities and large social service agencies, reported the biggest losses, according to the report.
鈥淔ederal funding used to be a very stable source, and I think we 鈥� and most partners 鈥� don鈥檛 consider it all that stable anymore,鈥� said Lauren King, CEO of . The group, formerly called the Tarrant County Homeless Coalition, partners with shelters across Tarrant County to combat homelessness and help people afford housing. 鈥淲e kind of don鈥檛 know what to expect at this point.鈥�
Whitnee Boyd, director of community impact for the North Texas Community Foundation, said the survey aimed to use numbers to illustrate the shared stories her organization is hearing from across the area.
鈥淥ur nonprofits are under a tremendous amount of pressure right now, and they鈥檙e working each and every day to deliver quality services to our most vulnerable neighbors,鈥� Boyd said.
Federal cuts lead to local nonprofit service reductions
Partnership Home鈥檚 own federal grant funding slightly increased this year, King said.
However, its budget is still significantly smaller than last year鈥檚. Partnership Home and other housing nonprofits and shelters across Tarrant County are seeing an almost 50% reduction in funding, largely due to pandemic-era federal aid running out.
That money, which was already set to expire, gave the nonprofit housing sector almost enough funds to meet the needs of Tarrant County, King said, but now groups must reevaluate what services they can afford to provide.
The funding cuts have led Partnership Home to reduce its staff of 30 by 20%. The organization also scaled back some services. For example, a popular program that helps residents access social security disability benefits went from having three staffers to one.
The report notes that another $17.4 million that North Texas nonprofits lost came from state and local sources, some of which may have been federal dollars that passed through them.
鈥淲e operate a pretty tight ship to begin with, so this level of funding cuts is a real challenge for us,鈥� said Keith Harrison, vice president of marketing and communications for .
Harrison said the organization, which delivers free meals and services to homebound, elderly and disabled residents, lost about $1.5 million in federal pass-through dollars for fiscal year 2025 and $500,000 for 2026 鈥� a substantial blow to its $14 million budget.
Meals on Wheels of Tarrant County leaders are looking 鈥渆verywhere鈥� to cut costs without significantly impacting services. So far, that鈥檚 included reductions to staff and in how often they deliver hot breakfasts. Harrison declined to specify how many staff positions were eliminated.
鈥淚t seems a little clich茅, but we鈥檙e literally just taking it one day at a time,鈥� Harrison said.
Economic uncertainty leads to declining donations
Nonprofits reported a $25.3 million decline in foundation grants and individual donations 鈥� a loss that could stem from the country鈥檚 focus on political spending in 2024 and economic uncertainty, the survey report notes.
Groups with small and medium-sized budgets, under $500,000 and $3 million, respectively, often rely most heavily on foundations and donors, as well as serve the largest number of individuals, according to the report.
Meals on Wheels of Tarrant County saw a roughly 20% reduction in community donations in 2025, Harrison said. He and King both traced reduced donations they鈥檝e seen to the country鈥檚 general economic uncertainty.
The report was released roughly two weeks before North Texas Giving Day, which is an effort across the region that historically sees significant and fruitful fundraising for nonprofits across Dallas-Fort Worth.
Herrera said he typically donates to five or six organizations on North Texas Giving Day. This year, however, he鈥檒l likely have to cut that down to one because of financial constraints. He expects many others will need to do the same.
Across the country, the nonprofit industry shed at least 22,757 full-time jobs in the first five months of 2025, according to a report this summer.
Boyd, one of the survey takers, stressed that the funding amounts don鈥檛 matter as much as the people the funding cuts affect.
鈥淲e have to keep in mind that no matter what the number is of 鈥榝unding impact,鈥� there are still people on the other end of this,鈥� she said.
Drew Shaw is a government accountability reporter for the Fort Worth Report. Contact him at drew.shaw@fortworthreport.org or .
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