In West Virginia, a federal funding freeze is wreaking havoc on organizations that play a crucial role in supporting vulnerable communities. Two individuals whose lives were deeply affected by these programs—23-year-old Ireland Daugherty and 36-year-old Ashley Cain—are now grappling with uncertainty. These women, who have found stability through federally funded initiatives, are facing the disruption of essential services that help the state’s poorest residents.
Daugherty, who overcame homelessness and domestic violence, is now a young adult transitioning out of foster care. She works for an organization that aids foster youth in their transition to adulthood. Cain, a four-year sobriety celebrant, works for Coalfield Development, a nonprofit focused on revitalizing abandoned coal sites and supporting workforce training for clean energy and manufacturing projects. Both women are products of a system reliant on federal support to provide basic needs such as healthcare, education, and economic development in one of the nation’s most impoverished states.
“We are a state that heavily relies on government funding,” Daugherty remarked, acknowledging the financial dependence of West Virginia on federal programs to sustain services for its residents.
Two weeks ago, the White House froze spending on federal loans and grants, throwing nonprofits in rural states, including West Virginia, into turmoil. While President Donald Trump’s administration initially rescinded the order, a federal appeals court ruled on Tuesday that the suspension of some federal funds remains. The freeze is exacerbating the state’s preexisting struggles, where poverty rates, opioid overdose deaths, and infrastructure issues are among the highest in the nation.
West Virginia’s dependence on federal funds is critical, especially as the state struggles with chronic issues like high rates of children in foster care, poor health outcomes, and a lack of basic infrastructure. With Trump having won every county in West Virginia in three consecutive elections, the state’s vulnerability to federal policy changes is pronounced.
Nonprofits like Coalfield Development, which had already secured nearly $700 million through federal spending packages, were pivotal in creating job opportunities and community revitalization projects in West Virginia. These projects aimed to provide thousands of jobs by cleaning up abandoned mines and installing solar energy infrastructure. CEO Jacob Hannah, a third-generation coal miner, emphasized the personal stakes involved in these federal-backed initiatives, as they aim to rebuild both the economy and the lives of local workers.
But the freeze has put those projects on hold indefinitely. Communications from federal agencies suggest that many awards are under review, leaving nonprofits like Coalfield Development scrambling to adapt.
“It’s been a lot of figuring out how to keep doing our work and not just sit and wait for the inevitable,” said Hannah, reflecting the uncertainty facing his organization.
Cain, who herself benefited from workforce training at Coalfield Development, described the tense atmosphere in her workplace, where employees are uncertain about their future. “The awareness of what could happen has really affected people’s attitudes,” Cain said, noting that many individuals, especially those facing significant life challenges, are now questioning their ability to build a better future.
Daugherty, working at Libera—a nonprofit that helps foster youth—was already struggling with delayed payments from a U.S. Department of Health and Human Services grant. The lack of these funds forced her organization to freeze critical programs, including mental health services for middle school girls. “There are executive orders that are extremely dangerous to the way of life for West Virginians,” Daugherty added, citing the immediate impact of the funding delays on her community’s most vulnerable members.
National nonprofits are echoing similar concerns. Diane Yentel, CEO of the National Council of Nonprofits, stated that while some organizations have seen their funds restored, many others remain in limbo. The confusion caused by the freeze is ongoing, and the harm it has caused is far from resolved. The National Council of Nonprofits was among the organizations that filed a lawsuit challenging the freeze.
The funding freeze has forced organizations to make hasty decisions with potentially long-term consequences. The Appalachian Center for Independent Living, which supports people with disabilities, was forced to lay off staff before later rehiring them when reimbursement funds were finally received. The West Virginia Food and Farm Coalition, which has spent years building trust with local farmers, is also concerned about the future of its programs, which could collapse if federal support continues to be delayed.
In rural West Virginia, the funding freeze has compounded the struggles of local entrepreneurs like Alecia Allen, who operates a therapy practice and grocery store in a low-income neighborhood. Allen faced delays in Medicaid reimbursements, which strained her ability to provide services to her patients. Furthermore, increasing tariffs have forced her vendors to raise their prices, adding additional strain on her already struggling business.
Despite the widespread concerns, some experts, such as Ryan Kelly, Executive Director of Rural Health Associations in Mississippi, Alabama, and Arkansas, believe that while the freeze may have been the wrong approach, the intent to address federal spending inefficiencies is a positive step. “When you’re making changes, there will be problems,” Kelly acknowledged, “but I’m cautiously optimistic that the good will outweigh the bad.”
As West Virginia’s nonprofit sector waits for clarity, the consequences of the funding freeze are already being felt across communities that rely on these services to address pressing social and economic challenges.
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