Subcommittee warns federal grant rule changes could limit nonprofit services; city pledges assistance

At a Dec. 15 nonprofit subcommittee meeting recapped to the full council on Dec. 16, staff and nonprofit leaders raised concerns about federal changes affecting entitlement grants. Yovanni Baez Rose explained distinctions among Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG) and HOME funds and described new qualification language reported from the federal level.

Subcommittee members and nonprofit representatives said the updated rules can restrict use of funds (noted language changes mentioned in the briefing: exclusions related to DEI, reproductive services, pronouns, climate and undocumented immigrants) and that these changes may reduce available support for some local programs. The city indicated exceptions exist for shelter, street outreach and infrastructure, and staff committed to helping nonprofits through requests for proposals, compliance education and by combining smaller grants to reduce administrative costs.

Nonprofit speakers including Rebecca Winalski and Dan Rivera described immediate funding challenges for pantries and homeless services and urged the council to preserve local service delivery. The subcommittee concluded with a plan to assist nonprofits in certification and application processes and to monitor the policy changes at the state and federal level.

Council accepted the subcommittee report and encouraged staff to continue outreach to affected nonprofits.