Gothamist: NYC nonprofits brace for more federal funding cuts
- December 1, 2025
- •Advocacy

New York City’s nonprofit organizations have scaled back food assistance, laid off staff and ended programs this year due to federal funding reductions — even as the deepest budget cuts by the Trump administration are yet to come, a new report found.
Last month, the Trump administration announced it was cutting two-thirds of funding for long-term housing programs in January and instead offering grants for short-term programs with mandatory treatment and work requirements. Federal housing officials said the move is needed to increase self-sufficiently and address the root causes of homelessness, which they say are mental health and addiction, as well as protect public safety.
“There is a very heightened focus on safety and there’s a belief, which I think is a lot overblown, that the population we serve is putting everyday New Yorkers at risk on the streets and on the subways,” said Eric Rosenbaum, president and CEO of Project Renewal, that provides shelter and supportive housing.
“The irony here is that the way in which we take care of those people is actually keeping New York safer.”


