Funding crisis looms for nonprofits serving Santa Clara Countys most vulnerable

Nonprofits serving vulnerable residents in Santa Clara County may experience significant funding cuts as the Trump administration proposes eliminating the $3. 3 billion Community Development Block Grant program. San Jose, which has received nearly $13 million for the 2024-25 fiscal year, is now focused on managing its remaining $4. 3 million in funds. Leaders from local nonprofits, such as Cynthia Chagolla of the Law Foundation of Silicon Valley, stress the importance of these grants for providing essential legal services to low-income renters.

The potential loss of funding threatens not only housing assistance but also broader community services. Kyra Kazantzis, CEO of the Silicon Valley Council of Nonprofits, highlighted that the federal administration's cuts target organizations that contradict its policies. This trend affects both federally funded and independent nonprofits. Alexandra Urbanowski of SVCreates noted that the cumulative effects of these funding cuts could destabilize local governments and organizations. The uncertainty around federal funding creates turmoil within a sector already strained by executive orders and economic pressures.