Hawai‘i Nonprofits Rally Amid Federal Funding Uncertainty

Honolulu, HI — In response to ongoing uncertainty surrounding a recent federal directive to pause grants and loans, Aloha United Way (AUW), in collaboration with the Hawai‘i Alliance of Nonprofit Organizations (HANO), is working tirelessly to assess the potential impacts on critical services for Hawai‘i residents. This freeze threatens housing, food security, childcare, and disaster recovery programs that thousands rely on every day.

To better understand the scope of these disruptions, AUW and HANO have launched a survey for nonprofit partners and service providers. The data collected will help shape advocacy efforts and identify urgent needs across the state.

“Our nonprofit community is resilient, but these unprecedented actions introduce uncertainty that affects real lives,” said Michelle Bartell, CEO of Aloha United Way. “Each United Way in Hawai‘i administers federal funds that help local residents, including the Emergency Food and Shelter Program (EFSP). We stand with our nonprofit partners and will continue to advocate for the stability of these critical resources.”

Melissa Miyashiro, President and CEO of HANO, emphasized the broader implications: “While we are relieved that the memo directing a federal funding freeze was rescinded, the nonprofit sector remains vigilant. The impact from withholding federal grants and loans could jeopardize nonprofit programs that serve as lifelines for thousands. This could have rippling consequences for not only our communities, but our nonprofit workforce.”

Earlier this week, the White House sent a directive to federal agencies ordering them to pause most of their federal grants and loans — including billions of dollars to nonprofit organizations and service providers— beginning January 28th. A few hours before the freeze was to take effect, a federal judge ruled to temporarily block it. In response, the administration rescinded their funding freeze directive on the morning of January 29th. However, the Administration’s Executive Orders issued last week remain in effect, adding another layer of uncertainty as legal and policy battles unfold. Aloha United Way and HANO are monitoring developments closely, recognizing that many of these executive actions may be challenged in court, superseded by Congress, or further clarified in the coming weeks.

Possible Implications for Hawai‘i

• Housing Stability: Approximately 50,000 residents are currently receiving housing subsidies. Those people are now incredibly vulnerable: The freeze exacerbates the risk of homelessness across the state. 
• Food Security: Interruptions to SNAP and food bank funding may leave families without access to essential nutrition.
• Childcare and Workforce: Programs like HeadStart face uncertainty, potentially leaving families without childcare and impacting workforce participation.
• Disaster Recovery: Funding delays for FEMA and DCMP could hinder ongoing and future disaster response efforts.
• Nonprofit Operations: Many local organizations rely heavily on federal grants to deliver essential services, making this freeze a significant threat to community stability

Resources and Call to Action

• Take the Survey: Nonprofit and service providers are encouraged to share their anticipated impacts at this survey link.
• Contact 211: AUW’s 211 Helpline is available to connect individuals and nonprofits to resources and services. Call 2-1-1 or visit AUW211.org.
• Advocacy Efforts: HANO is mobilizing nonprofits to amplify their voices. Nonprofit and community members are encouraged to sign up for HANO email alerts.

For Updates and More Information

Aloha United Way (AUW):
Aga Westfal-Conboy, V.P. Marketing & Communications
Email: aga@auw.org / Phone: (808) 543-2201  
 
Hawai‘i Alliance of Nonprofit Organizations (HANO):
Melissa Miyashiro, President and CEO,
Email: mmiyashiro@hano-hawaii.org / Phone: (808) 529-0454

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