/Project 2025 Initiates Challenges for Black-Led Nonprofit Funding

Project 2025 Spurs Nonprofit Funding Challenges

Emerging from the Heritage Foundation's Project 2025 blueprint, significant policy changes are underway, impacting various federal and nonprofit sectors. Initially released in 2022, this 920-page document aimed at reshaping federal policies and authorities under a conservative framework is now influencing the current Trump administration.

From Blueprint to Executive Orders

In January 2025, Donald Trump commenced his second term, promptly enacting key aspects of Project 2025 through executive mandates. As of July, 170 such orders have been signed, several echoing the blueprint. These directives have notably affected diversity, equity, inclusion, and accessibility (DEIA) efforts nationwide.

A crucial executive order, titled “Ending Radical And Wasteful Government DEI Programs And Preferencing,” mandates the termination of DEIA initiatives within federal entities. The order, managed by Russell Vought, the Director of the Office of Management and Budget and a Project 2025 contributor, focuses on ending “discriminatory programs” under all guises.

Black-Led Organizations Face Funding Anxiety

Black-led nonprofits, already facing funding challenges, anticipate further financial restrictions due to these policy changes. A California-based network, the Black Equity Collective, conducted a survey of 217 organizations, revealing concerns over revenue and staffing shortages.

Founder Kaci Patterson noted, "We sort of started to see this decline in funding coming," reflecting a broader context where post-George Floyd support began to ebb even before the current administration's policies took hold. The BEC report highlights that many organizations anticipated the challenges posed by federal funding shifts.

Local Nonprofits and Federal Funding at Risk

Recent mandates likely jeopardize nonprofits reliant on federal grants, which include a substantial portion in California. An Urban Institute analysis revealed these organizations, including those in Riverside and San Bernardino counties, could lose essential government support.

This executive order impacts not only direct federal funding but also extends to associated restrictions on philanthropic foundations. "The grounds on which philanthropy can operate are now being contested," stated Benjamin Soskis of the Urban Institute.

Community Efforts to Mitigate Impact

The Inland Empire Black Equity Fund, launched amid racial justice movements in 2020, might be particularly vulnerable. Despite award grants totaling $1.767 million to 71 organizations, the need outpaces available resources, especially as government contributions shrink.

Brie Griset Smith of the Inland Empire Community Foundation expressed concern, emphasizing the foundation's role in attempting to "fill the gaps as much as possible." Efforts include providing flexible grants, fostering discussions, and mobilizing support to counteract federal funding reductions.

As Project 2025 continues to unfold, the implications for nonprofits, particularly those led by Black organizations, call for adaptive strategies and concerted community efforts to navigate these turbulent shifts.