Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Nonprofit Sector topic
No spam. Unsubscribe anytime.
United Ways and nonprofits describe immediate administrative strain from federal funding review
Summary
United Way of Southern Nevada and partners reported that a short-lived Office of Management and Budget instruction to freeze some federal grants created rapid disruptions for nonprofits; respondents reported frozen portals, delayed reimbursements, and staffing risk.
Statewide United Way chapters and nonprofit partners told the joint committee that the Office of Management and Budget memo requiring temporary review of federal grants, even though rescinded, caused immediate operational strain for many nonprofit service providers in Nevada.
Sam Rudd, president and CEO of United Way of Southern Nevada, described a rapid-response survey effort. The second survey — 160 program responses statewide — showed respondents representing every Nevada county reporting about $214 million in federal funds passing through or awarded to nonprofits in the sample, serving an estimated 100,000-plus Nevadan clients in the programs represented. The Department of Health and Human Services, Agriculture and Education were the largest federal sources of funds in the reported sample.
Rudd said many nonprofits rely on up-front spending and reimbursement; nearly 38% of survey respondents said they experienced temporary portal shutdowns or frozen payments in the immediate wake of the OMB instruction. Some organizations reported changes to compliance requests and longer reimbursement timelines; a portion said staffing had been affected. United Ways and partners said small nonprofits have limited cash reserves and warned even short delays can force service reductions, missed payroll or contracted-program risks.
United Way staff told lawmakers they are coordinating with Legal Aid, Nevada Grant Lab and the governor’s Office of Federal Assistance to collect data, provide legal and technical support, and to propose administrative remedies such as advanced payments or prompt-payment rules for state pass-through grants.
Ending: Nonprofit leaders asked the Legislature to consider short-term administrative changes and to work with state agencies and the governor’s office to mitigate cash-flow risks for service organizations if federal funding remains uncertain.
