Foundations Deploy Emergency Grants as Federal Funding Vanishes

Six months into an administration that has slashed funding across multiple sectors, private foundations are moving from bystander to backstop. But even the most generous emergency funds can't replace what Washington is pulling away.

Billions Disappear, Foundations Respond

The scale of federal cuts has forced rapid philanthropic action. The Skoll Foundation launched a $25 million emergency fund for grantees impacted by the near-total elimination of U.S. international development aid. The Ford Foundation pledged $16 million to the Fund Our Futures campaign supporting LGBTQ organizations as federal funding for those programs vanishes entirely.

Community and regional foundations are following suit. Across the country, local foundations have opened rapid-response grant programs to stabilize nonprofits that lost federal contracts or grants. Some are offering bridge funding of $5,000–$15,000 to buy organizations time to restructure their operations and revenue models.

The Gap Philanthropy Cannot Fill

Congress has approved more than $1 trillion in Medicaid cuts over the next decade and retracted billions in previously approved funding for international development and public media. Federal grants to nonprofits in education, health, and social services—once the most reliable revenue source for thousands of organizations—have been frozen, terminated, or placed under review.

Private foundations gave approximately $105 billion in 2025. That figure, even if every dollar were redirected, couldn't replace the federal spending being eliminated. Some funders are shifting from short-term emergency grants to longer-term sustainability commitments—helping grantees merge, share back-office functions, or diversify revenue streams to reduce federal dependency.

Finding Available Emergency Funds

Organizations that receive any federal funding should immediately assess their exposure and begin identifying private alternatives. Emergency grant funds have limited windows—the Skoll fund, for example, is already deploying capital.

Many community foundations have unpublicized rapid-response programs that aren't listed on major grant databases. Granted can help surface these opportunities alongside state and private funding sources that may offset federal losses. The organizations that move fastest will be best positioned to survive this funding realignment. More detailed coverage of foundation emergency funding strategies is available on the Granted blog.