President Trump’s federal funding freeze creates fear in local non-profit

April 25th, 2025

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Written by: Staff Writer

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Edited by: Katelyn Auty

The Mix in downtown Lancaster. | RAYSA KELLY / SNAPPER

Raysa Kelly
Staff Writer

President Trump’s freeze on federal funding on January 28, 2025, has left devastating effects throughout the United States. These effects are still presenting themselves among the most impactful, where those involving non-profit organizations, including local organizations such as The Mix.

The Mix is a local non-profit organization focused on inspiring youth and empowering families. They are located in Downtown Lancaster and have already started feeling the pressure from the federal freeze. 

“For organizations, for non-profits in particular, it’s a very weird time. A lot of unknowns and a lack of clarity and there’s a lot of fear, a lot of fear that there won’t be opportunities to continue to do some really meaningful work. Work that we know is necessary,” says Riccardo Calderón, The Mix’s Fundraising Development Coordinator. 

Within the metro Lancaster area, there are 3,150 nonprofit organizations. These local nonprofit organizations are less likely to receive government grants as it is less likely for them to have the capacity to go through the long application processes. According to Candid insights, to make up the gap filled by the funding freeze, private foundations would have to increase their grant-making by 282%.

An immediate result of the freeze on federal funding meant that the money these nonprofit organizations are supposed to be receiving is unattainable. Figure 3 by the Urban Institute shows how many nonprofits received local, state, and federal funding between the years 2019-2022. Most nonprofits rely on this funding and were severely impacted by the freeze. As of 2022, 29% of nonprofit organizations funding comes from government agencies according to the Urban Institute. 

In the northeast region, 71% of nonprofit organizations use government funding. Specifically in Pennsylvania, 37% of nonprofits receive government funding. Most federal funding comes through grants or contracts. The Urban Institute conducts research every three years about non-profits across the United States and how much funding they applied for or received. Which they would not have had access to during the freeze.

Calderón explains some of the lasting effects the funding freeze has left on The Mix, “On a state level folks are being a bit more tight with the budget and not knowing how to project and not knowing what’s to come, I think the unknown is really scary right now for legislatures.” 

This fear has caused organizations to pull their funding out of The Mix’s Summer Program.

The Mix’s Summer Program is separated into three separate parts, Camp Invention, Camp Create, and Camp Adventure. Each with its own specialized programs to inspire children to learn and to grow. Without a replacement of this funding not only The Mix will be affected but the children who are frequent and active participants of their summer programs.

The Mix has not been the only non-profit organization that has been affected by the funding freeze. The freeze lasted for just under a month and left an impact that cannot be seen on a widespread scale yet. In the time to come, all organizations reliant on federal funding will soon experience the overarching effects of this freeze as the dust continues to settle across America.