When politicians talk about “beauty,” they’re not usually thinking about children losing afterschool programs, elders without access to food pantries, or families losing eviction prevention support. But that’s exactly what’s happening under the so-called One Big Beautiful Bill (OBBB).

For those of us working in and with frontline nonprofits, there’s nothing beautiful about it.

Across the country, nonprofits are reeling from canceled grants, stalled contracts, and a wave of uncertainty that’s forcing impossible choices: who gets served, who gets laid off, and which mission-critical programs can survive the cut.

What Is the OBBB—and Why Is It Hurting So Many of Us?

The One Big Beautiful Bill is the nickname given to a sweeping federal spending law that aimed to “clean up the budget.” In reality, it’s cleaned out many of the programs our communities rely on. While the official language of the bill speaks of “efficiencies” and “reducing redundancy,” here’s what it actually looks like on the ground:

• Promised federal grants suddenly canceled—even after nonprofits hired staff and launched programs.
  
• Reimbursement-based contracts frozen, leading to cash flow crises.
  
• Long-standing funding programs eliminated or put “under review” indefinitely.
  
• Increased barriers to access, including more matching requirements, complex applications, and fewer awardees.
  

For organizations already operating with razor-thin margins, the impact is devastating.

The Human Cost of Federal Neglect

Let’s be clear: the organizations affected by these cuts aren’t bloated bureaucracies—they’re youth centers, domestic violence shelters, community health programs, and food access initiatives. They’re often led by BIPOC women, immigrants, and people who grew up in the very neighborhoods they now serve.

The OBBB didn’t just pull the rug out from under us, it yanked away funding with no warning, no safety net, and no acknowledgment of the lives at stake.

What Can Nonprofits Do Now?

If you’re facing a budget deficit because of OBBB, you’re not alone—and you’re not without options. Here’s where to focus your energy:

1. Get Clear on the Numbers

Revisit your budget with your leadership team. Identify core services and what’s at risk. Build contingency plans based on different funding scenarios. This is the time for hard truths and transparent communication, with your staff and board.

2. Talk to Your Community of Funders

Reach out to private foundations, donors, and corporate sponsors. Let them know how the OBBB has affected your work. Be specific. Share numbers. Many funders want to help, but they don’t know what’s happening unless we tell them.

3. Pursue Alternative Funding Streams

Not all government funding is frozen—some state, municipal, and ARPA-related opportunities are still moving. At LSC, we’re actively helping clients identify and pivot to alternative sources, including philanthropic partnerships and pooled funds.

4. Strengthen Peer Collaboration

This is a moment to lean on your networks. Can you share space, pool back-office functions, or co-apply for emergency bridge grants? Collaboration is more than a buzzword, it can be a survival strategy.

5. Lift Your Voice in Advocacy

The same federal officials who passed the OBBB need to hear from us. Use your platforms—newsletters, social media, town halls—to share real stories about the bill’s impact. Policy should never be written without the communities it affects at the table.

You’re Not Powerless—And You’re Not Alone

At Lydia Sierra Consulting, we know what it’s like to pivot fast and still deliver. We’ve had to do it ourselves. If you’re facing a funding crisis, we can help you assess your risks, identify new opportunities, and communicate clearly with stakeholders. Whether it’s through strategic prospecting, grantwriting support, or short-term capacity planning, our team is here for you.

The OBBB may have disrupted your funding, but it doesn’t get to disrupt your mission.

Let’s fight for your vision—with strategy, clarity, and the community behind you.

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