Foundations Deploy $40 Million in Emergency Grants as Federal Cuts Deepen

Major foundations are stepping into the breach left by deepening federal budget cuts, deploying tens of millions of dollars in emergency funding to stabilize nonprofits that have lost government grants and contracts.

Skoll and Mellon Lead With $40 Million

The Skoll Foundation has launched a $25 million emergency fund targeting grantees impacted by the near-total elimination of U.S. international aid. The fund has already disbursed grants to 55 organizations working in global health, education, and economic development.

The Mellon Foundation followed with $15 million in emergency funding specifically for state humanities councils facing federal shortfalls. The humanities sector has been hit particularly hard, with the National Endowment for the Humanities budget under sustained pressure from the administration's proposed 22.6% cut to non-defense discretionary spending.

These are not isolated responses. Several community foundations across the country have established their own emergency pools to support organizations in immigration services, criminal justice reform, and DEI programming — sectors that have seen both direct funding cuts and political pressure from the federal government.

From Crisis Triage to Structural Adaptation

What began as emergency response is evolving into longer-term strategy. Foundations are increasingly combining grants with impact investments, technical assistance, and advocacy support to stretch resources further. Some are accelerating multi-year commitments to provide the stability that annual federal grants no longer guarantee.

The Chronicle of Philanthropy reports that a separate $1 billion initiative is taking shape to support economic mobility for low-income Americans — a direct response to the scale of federal retrenchment across social safety-net programs, including more than $1 trillion in proposed Medicaid cuts over the next decade.

Collective giving is also gaining momentum. A growing number of giving circles and mutual aid networks are pooling resources at the community level, creating a decentralized safety net that operates outside traditional philanthropic channels.

What Nonprofits Should Do Now

Organizations that have lost or expect to lose federal funding should act immediately. Emergency funds typically have short application windows and limited pools — the Skoll Foundation's fund is already substantially deployed.

Nonprofit leaders should monitor foundation announcements daily and begin diversifying their funding mix. Grantedai.com tracks both federal and foundation opportunities, making it easier to identify alternatives quickly. For a comprehensive guide to navigating the current funding landscape, visit the Granted blog.