NASHVILLE, Tenn. (WTVF) — Tennessee’s nonprofit organizations, which collectively received $3.8 billion in government grants, are now grappling with the threat of losing substantial federal funding due to recent cuts and executive orders.
Among those feeling the impact is Catholic Charities, a longstanding organization in Davidson County that provides vital services to refugees and other vulnerable populations.
Rick Musacchio, Executive Director of Tennessee Catholic Charities, explains the organization’s mission: “We have a gospel mandate to welcome the stranger and to care for people who are in need.”
For decades, Catholic Charities has offered critical assistance, particularly through its refugee resettlement program, which helps legally authorized refugees and migrants rebuild their lives after fleeing violence and instability in their home countries.
The program has a strong track record, with Musacchio noting that many refugees become self-sustaining within six months of arrival, a success that dates back to the early 1960s.
The organization provides these services upfront and submits documentation for federal reimbursement. However, in January, Catholic Charities learned that it would no longer receive these reimbursements due to an executive order freezing federal funds, effectively halting continued service to newly arrived refugees.
“This freezing of funds put an immediate crimp in the budget, resulting in about $500,000 of lost funding,” Musacchio said.
Although a judge later blocked the executive order, the damage had already been done. In addition to the loss of funding, the organization has been forced to lay off at least eight staff members, with that number expected to rise.
The situation is not unique to Catholic Charities. The mayor’s office in Nashville reports that nearly 400 nonprofits in Davidson County are either at risk or have already lost federal funds.
According to the Urban Institute, these organizations are facing a potential loss of $1.5 billion in federal funding, which could have widespread implications for services in the area.
“We’re looking at a new model, where not-for-profits are going to have to work harder to raise the funds to provide that charitable service,” Musacchio said.
Despite the setback, Catholic Charities remains hopeful. Musacchio shared that donations have helped the organization cover more than half of the lost funding, allowing them to continue providing services to those in need.
He emphasized that every refugee resettled through the U.S. Refugee Admissions Program undergoes a rigorous vetting process, including approval by the Department of Homeland Security, which authorizes their travel to the United States.
For those who wish to contribute to the efforts to help refugees, donations can be made through the Catholic Charities website.
Do you have more information about this story? You can email me at Kelsey.Gibbs@newschannel5.com.
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