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Report: How are new federal policies impacting Arizona nonprofits in 2025?
Report from the ASU Lodestar Center details the impacts of new federal policies on Arizona nonprofits
March 19, 2025 — In early 2025, the second Trump administration began a series of budget-cutting maneuvers, funding freezes and firings of government workers. To see the effect these changes were having on the sector, the ASU Lodestar Center surveyed Arizona nonprofits, finding out how many organizations receive federal funding, and the impact of what losing that funding would mean to them.
Key insights from the report include:
- Nonprofits are well aware of the changes that may be coming, but smaller organizations and those in rural areas seem to be less attuned to the issues.
- Nonprofits are concerned about the changes to federal policies and are looking for guidance on how to deal with them, but are eager to address these issues.
- Nearly half (47 percent) of the organizations that receive either direct federal funding or pass-through funding have experienced delays in payments or the cancellation of grants or contracts.
- Rural nonprofit organizations are especially reliant on federal funding. Forty-two percent of the rural organizations surveyed receive more than half their funding from federal sources.
- Nonprofits report that federal actions on DEI, immigration, and gender policies have had the most impact on their operations so far.
- Uncertainty about what the future holds is a major concern for nonprofit organizations.