Nonprofit leaders urge California to backfill federal cuts, propose state office and payment reforms

Nonprofit leaders, disaster-response coordinators and state officials told a joint California State Assembly and Senate select committee hearing that sudden federal funding reductions and slow state payments threaten nonprofits’ ability to deliver services across the state.

The hearing convened lawmakers and representatives from community foundations, Cal OES and major nonprofit networks to describe how contract timing, reimbursement models and cuts to federal programs are straining organizations that provide food, housing, health care and disaster recovery. Jeff Green, CEO of the California Association of Nonprofits, said the sector lacks a central point of contact inside state government. “We need better infrastructure within state government and nonprofits really need a voice in state government,” Green said.

Why it matters: Witnesses described the problem as both immediate and systemic — an urgent cash-flow crisis for organizations on the ground and a long-term risk to the nonprofit workforce. Annie Chang, vice president of community engagement at Nonprofit Finance Fund, summarized survey findings showing delays in state payments and…