Nonprofit organizations across Mercer County are reporting significant impacts from ongoing federal funding instability, according to a new report from the United Way of Greater Mercer County.
The report warns of program cuts, layoffs and mounting uncertainty for vulnerable residents throughout Central New Jersey.
The report, titled Disrupted: How Federal Funding Volatility Is Affecting Nonprofits, draws on data from 28 nonprofits serving Greater Mercer County and reflects a range of services including elder care, domestic violence response, housing support, and youth programs.
The organizations surveyed serve thousands of residents in Trenton, Hamilton, Ewing, Princeton and other Central Jersey communities.
“These voices paint a stark but honest picture of the uncertainty, challenges, and ingenuity nonprofits are experiencing,” said Sandra Toussaint, President and CEO of United Way of Greater Mercer County.
“Frontline organizations continue to serve with commitment, even as critical funding sources are paused or at risk,” she said.
Between Feb. 28 and March 17, 2025, United Way surveyed local nonprofits as Congress debated federal budget appropriations.
The results, supported by direct conversations with nonprofit leaders, reveal a growing crisis for agencies dependent on government grants.
One Mercer nonprofit executive reported that more than 90% of their budget comes from federal funding and they are now preparing for potential program closures.
According to a February 2025 Urban Institute study, 213 nonprofits in Mercer County collectively reported receiving more than $706 million in government grants, with nearly 70% of that funding believed to be at risk.
The report highlights that across the U.S., more than $267 billion in public charity funding came from government sources in 2021, underscoring the national scale of the threat.
Among the report’s key findings:
1. Over $11.5 million in local nonprofit budgets is at risk**, about 9% of the total among respondents;
2, 188 employees have already been affected through layoffs, hour reductions, or hiring freezes;
3. More than half of the surveyed organizations say at least one of their programs is already disrupted;
4. Affected services include subsidized meals, housing navigation, and support for sexual assault and trafficking survivors; and
5. Agencies report being forced to tap endowments, lay off staff, and discontinue programs to stay afloat.
“These are some of the few sources of funds willing to support salaries,” one nonprofit leader said. “Without that, programs would need to be discontinued simply because other funding sources do not pay personnel to run them.”
The survey also reveals widespread concern about the future, even among nonprofits not currently reliant on federal grants.
As one respondent put it, “Every minute spent trying to understand the changes are minutes not spent delivering services.”
To counter the disruptions, United Way calls for immediate action at all levels, including:
1. Bridge funding from local governments and philanthropy;
2. Stronger advocacy for stable federal commitments;
3. Diversified revenue planning by nonprofit boards;
4. Support for financial resilience, including reserves and general operating funds; and
5. Collective voice and planning among nonprofits and funders.
“The stakes are high,” Toussaint said. “Let this report serve as both a reflection of where we are and a call to action for where we must go.”
United Way of Greater Mercer County is headquartered at 3444 Quakerbridge Road in Hamilton. More information and the full report can be found at www.uwgmc.org.
