Nonprofits in Tucson bemoan millions in expected federal funding cuts

Eight nonprofits gathered at the Community Foundation for Southern Arizona on Wednesday to discuss cuts that are proposed in the federal bill and how they would affect their organizations.

“The nonprofit sector in Arizona employs one in every 14 people and is the sixth-largest industry in the state,” said Jenny Flynn, the foundation’s CEO. “Arizona’s nonprofit sector generated $58.2 billion of income in 2022.”

Last Month, the Trump administration proposed a $163 billion cut to the U.S. budget that would drastically reduce domestic spending on multiple federal programs. Some of the proposed cuts include Medicaid, SNAP food stamps and green energy incentives.

“Every day, our agency helps low-income, older adults, families and individuals access life sustaining services, many of which are possible through Medicaid and SNAP,” said Sophie German, a representative from Jewish Family and Children’s Services. “These proposed budget cuts aren’t just numbers on paper. They threaten real people in Pima County.”

In the last few months, the Southern Arizona AIDS Foundation, CODAC and Casa de Los Niños have already made cuts due to federal changes in funding. In May of this year, the Southern Arizona AIDS Foundation was notified the program would face a $2.1 million cut going into the 2026 fiscal year, according to the organization’s Chief Development Officer Lee Bucky.

“We are looking at another set of potential funding cuts that could amount to about $4.5 million total,” Bucky said. “What it does is it affects our ability to provide housing assistance, rental assistance, utility assistance and medical and dental benefits to an already at-risk population.”

This year, SAAF has already reduced testing hours for STI, HIV and Hep C testing and laid off 14 people.

Casa de Los Niños and CODAC faced early funding reductions earlier this year when they lost ARPA funding. CODAC lost three ARPA grants and had to relocate staff members to other departments, and Casa de Los Niños faces possible layoffs for staff in TUSD programs if it can’t find additional funding.

“We knew ARPA was going to go away, but it’s gone away sooner than we thought,” said Casa de Los Niños leader Favin Gebremariam. “It’s already starting in smaller ways and impacting us as an organization.”

The Big, Beautiful Bill would also eliminate $2.28 million for the Education for Homeless Children and Youth Program, established under the McKinney-Vento Homeless Assistance Act.

“Today is a unified call to Washington, D.C., from the nonprofit community,” Flynn said on behalf of the eight organizations. “We urge you to fully understand the consequences of proposed funding cuts ... We must work together to ensure that Southern Arizona continues to be a place where everyone has an opportunity to thrive.”