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Op-Ed | Federal cuts and state purple tape are squeezing New York’s nonprofits | New York News

newyork-newsBy newyork-newsJune 13, 2025No Comments3 Mins Read
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Op-Ed | Federal cuts and state purple tape are squeezing New York’s nonprofits | New York News
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Throughout New York, nonprofits are lifelines and advocates for the underserved, the susceptible, and the unvoiced. They supply entry to healthcare, family requirements, meals and clothes, psychological well being assist, and academic alternatives. The trade can be a big drive for a thriving economic system, using simply over 1 in 6 New Yorkers within the non-public sector.

Regardless of their crucial position, authorities insurance policies coming from Albany and Washington proceed to make their jobs more durable. Earlier this yr, the New York State Comptroller launched a report that discovered that whereas nonprofits are an important a part of the social security web, they’ve confronted a regarding decline since 2017. Because of late contract processing by the state and unsure funding streams, we’ve seen a web lack of over 170 organizations within the sector between 2017 and 2022 and a discount in nonprofit jobs.

Sadly, the state of affairs is about to get far tougher. Because the Trump administration has made sweeping spending cuts, New York’s nonprofits have already misplaced hundreds of thousands of {dollars} in federal funding. These cuts have severely undermined essential work occurring all through the town and state. Amongst these harmed are Meals on Wheels, teams that present companies and function shelters for the homeless, organizations that provide important authorized companies for the underserved, and extra.

In the meantime, the slashing of outbound federal funds to New York State has impacted the companies that present crucial well being and human service packages. Gov. Kathy Hochul estimates that we might lose practically $400 million in monetary assets wanted for psychological well being and dependancy companies and well being departments throughout the state. In New York Metropolis, the place federal funds comprised over 6% of the town’s finances, the loss might create a dire state of affairs for its most susceptible residents, making the position of nonprofits extra crucial than ever. 

Whereas I definitely agree with our state lawmakers’ want to guard the privateness of delicate healthcare info and the information of youngsters, we should always achieve this in a approach that collaborates with nonprofit leaders, as an alternative of saddling them with onerous compliance prices.

On account of these proposals, nonprofits that work with well being information or serve minors will face calls for which will sound affordable in concept however will, in apply, require them to allocate already scarce assets to authorized groups and compliance–pricey audits, untold liabilities, and staffing burdens they’ll hardly afford. These organizations are already underneath siege by federal funding cuts and inefficient state processes. And the dearth of transparency round legal professional normal and company rulemaking has left these important organizations at nighttime, stripping away the time wanted to make essential changes to conform.

In these unsure and unstable occasions, let’s do every part to keep away from bogging down the very teams holding the road for susceptible communities in new purple tape. Our focus should be on discovering methods to advertise and assist their missions, that means we should always assume twice about passing any new legal guidelines that would impede their capability to serve the communities that want them most.  

Rev. Carmen Hernandez is a Bronx-based neighborhood advocate and activist, and the founding president of the NYC LGBTQS Chamber of Commerce.

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