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Nov 14, 2025 | Insights

Statement from TSNE on Effects of the Government Shutdown on the Nonprofit Sector

TSNE

Every day, nonprofits power the health, safety, and well-being of our communities. They are the bridge builders, connectors, and steady supports—feeding families, caring for veterans, showing up when disaster strikes, and so much more. When government services pause or stall, nonprofits are often the first—and sometimes the only—responders, stepping into the gaps to keep people housed, fed, healthy, and safe.

While the continuing resolution has reopened government agencies, the shutdown’s impact will continue to ripple across our communities and the nonprofit sector for months to come. The shutdown compounded existing challenges—disrupting critical services and straining organizations already stretched thin. Delayed reimbursements and paused grant cycles have created cash-flow crises even as demand for services has surged, especially in food security, housing stabilization, immigrant and refugee support, and behavioral health.

Even so, nonprofits showed up. They ensured families facing disruptions in Supplemental Nutrition Assistance Program (SNAP) benefits received food, provided childcare to those affected by Head Start closures and cutbacks, offered critical public health services, kept shelters open, cared for those with behavioral health needs, supported immigrants and refugees navigating stalled cases and ICE raids, and so much more. Nonprofits kept our communities healthy, safe, and supported, often without the resources they need to do the work. These disruptions fall hardest on Black, Indigenous, and other communities of color; immigrants and refugees; low-income and working-class families; rural communities; and others who rely most on a stable safety net.

As we move forward, we must act to protect and strengthen the nonprofit sector. While the continuing resolution offers some temporary relief, it remains insufficient. Our government has a responsibility to effectively allocate tax dollars for the well-being of our nation, and until public services are fully and sustainably funded, these temporary stopgaps will continue to fall short of meeting the needs of the American people.

This moment calls for practical steps that stabilize organizations now. Philanthropy cannot, nor should, fill the role and responsibility of the American government; however, the sector is an important partner in ensuring that the American people get the resources and supports they need and deserve, when they need it. That means moving resources quickly, reducing administrative barriers, and collaborating with nonprofits as true thought partners and problem-solvers, not just as contractors. Philanthropy can meet this moment by providing flexible, multi-year funding and prioritizing organizations that serve communities most affected by disinvestment and disruption. Nonprofits, in turn, can band together to share information, coordinate responses, build coalitions, and advocate collectively so that the sector remains strong.

TSNE stands with our network of nonprofit leaders and frontline staff who carry our communities through crisis and beyond, serving as the backbone of everyday life. We call on policymakers, philanthropy, the private sector, and neighbors in every community to meet this moment with the urgency, flexibility, and investment it requires, so nonprofits can continue to do what they do best: keep our communities whole.