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In Tuesday, September 16th’s Budget, Finance, and Economic Development (BFED) Committee, Danielle Clore, CEO of the Kentucky Nonprofit Network and Lexington Nonprofit Coalition, will talk with Councilmembers about how Lexington’s nonprofits are being impacted by federal funding cuts and uncertainty.

The Trump Administration has made a number of changes to the federal government that affect nonprofit organizations, including:

  • Freezing previously allocated grants and programs
  • Signing executive orders aimed at nonprofits that the Administration feels do not represent their priorities

Nonprofits across Kentucky rely heavily on government funding:

  • Lexington Nonprofit Coalition members –an advocacy arm of the Kentucky Nonprofit Network – receive on average 74% of their revenue from programs and services, much of it federal funding.
  • Statewide, nonprofits receive about 34% of their revenue from government sources.

The presentation to Council will include perspectives from several nonprofits in Lexington:

  • Christian Postel, CEO of the Lexington Leadership Foundation, reports staff layoffs due to frozen federal funds supporting youth programs. Two more grant-funded positions may be cut in 2026.
  • Darlene Thomas, Executive Director of Greenhouse 17, notes that 45% of the organization’s budget comes from federal funding.
  • An anonymous Lexington nonprofit included estimates they have already lost $95,000 in revenue due to federal cuts, with an additional $50,000 – $100,000 in indirect losses expected.

Congress must adopt a federal budget by October 1st. The Trump Administration’s proposed budget includes further cuts beyond those already implemented. If Congress fails to pass a budget or temporary continuing resolution, a government shutdown would further impact nonprofits nationwide.

The Coalition is not requesting funding from Council at this time. Instead, they recommend:

  • Councilmembers advocate for nonprofits with Kentucky’s federal and state elected officials.
  • Councilmembers learn more about Lexington nonprofits and the communities they serve.

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Watch the meeting:
The Budget, Finance, and Economic Development Committee will meet on Tuesday, September 16th at 1pm in Council Chambers. You can attend in-person or watch live on LexTV.

Disclosure: CivicLex is part of the Kentucky Nonprofit Network and has partnerships with both KNN and the Lexington Nonprofit Coalition.