Hawaii's nonprofit sector is bracing for the impact of federal funding cuts, but a new state initiative offers a lifeline. The evaluation committee for Act 310, also known as Senate Bill 933, has opened the application process for $50 million in grants designed to support organizations affected by federal reductions. Hawaii News Now originally reported on this development.
This funding comes in response to concerns that federal cuts would significantly impact vital services in areas such as healthcare, human services, education, homelessness, and food security. Civil Beat highlights that legislators authorized these grants-in-aid during the last session. The severity of the situation is underscored by a UHERO report which found that Hawaii nonprofits face a potential shortfall of $126 million due to federal cuts. Furthermore, the report states that 74 federal grants earmarked for 59 Hawaii nonprofits are now politically vulnerable.
Gov. Josh Green approved the plan, recognizing the critical role nonprofits play in the community. As Yahoo News reports, Green stated that these organizations are the “heartbeat of our community.” To be eligible, nonprofits must demonstrate a loss of federal funding or show that their services primarily benefit populations negatively impacted by federal cuts. This initiative represents a critical step in preserving the social safety net and ensuring continued access to essential services for Hawaii residents. The Hawaii Public Radio also mentions a bill to set aside money from the state budget for grants to support services across the local nonprofit sector.
The implications of these grants extend beyond direct financial assistance. By supporting nonprofits, the state indirectly supports local business and economic activity. Many nonprofits contract with local businesses for goods and services, and their financial stability ensures the continuation of these partnerships. Additionally, a robust nonprofit sector contributes to a healthier and more stable community, which is crucial for attracting both investors and residents.
