Greetings—


Nationwide, nonprofits have faced funding disruptions that have made it harder to carry out their missions and serve communities. Nonprofits in the greater Washington, DC, region—where large numbers of federal government workers have been laid off, and the unemployment rate has risen faster than in the rest of the US—were especially hard hit.

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New Urban Institute analysis explores the ripple effects of government funding disruptions on employment opportunities, affordability, and demand for nonprofits’ services in the greater DC region. Their key findings, using data from the 2025 National Survey of Nonprofit Trends and Impacts, include:

- 43 percent of nonprofits headquartered in the Greater DC region reported government funding disruptions compared with 33 percent of nonprofits nationwide.
- Disruptions to nonprofits’ government funding threaten a job market weakened by federal government job losses. 21 percent of nonprofits headquartered in the greater DC region reported a decrease in staff, compared with 15 percent nationwide. From 2024 to 2025, there was a 16 percent decrease in DC-area nonprofits reporting that they anticipate hiring new staff and an 8 percent increase in those reporting plans to lay off staff within 12 months.
- High and rising costs of living compound employment challenges and likely increase demand for nonprofits’ services. Home sale prices, rent, and grocery costs in the region have increased by 62 percent, 27 percent, and 40 percent, respectively, between 2017 and 2025.
- Despite growing need, nonprofits headquartered in and serving the DC area are already decreasing their staffing and programming. In spring 2025, 22 percent of these nonprofits reported decreasing their total number of programs, and more than half reported keeping their total number of programs about the same, despite two-thirds anticipating an increase in demand for their services over the next 12 months.
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Explore the full analysis , and please reply to this email if you would like to connect with lead experts
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Laura Tomasko and
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Catherine Harvey .


Thanks,


- The Stakeholder Outreach team

U R B A N I N S T I T U T E

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www.urban.org




Urban Institute is a nonprofit research organization that believes in the power of evidence to improve people’s lives. Urban as an organization does not take policy positions but Urban’s independent experts are empowered to make recommendations based on their research.


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