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Nonprofits urge New York City to speed payments and plan for federal cuts to human services
Summary
Nonprofit coalitions and providers told the Council delayed city payments and frozen federal grants are creating an acute cash‑flow crisis that could force layoffs and reduced services for clients across the city.
A series of nonprofit coalitions and frontline providers told the City Council that the city’s human services sector is already experiencing a cash‑flow crisis as federal grants were paused or frozen and city reimbursements remain delayed.
Joseph Rosenberg, executive director of the Catholic Community Relations Council, said his agency was notified in late March that 80% of a federal legal services contract had been terminated, producing a $4.3 million loss. “We will try to find ways to continue to represent unaccompanied minors and asylum seekers without having to rely on the federal government, but it will be a daunting and…
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