Today : Oct 13, 2025
U.S. News
26 August 2025

Federal Budget Cuts Hit Midwest Nonprofits And Health Care

Nonprofits and health care providers in South Dakota and Ohio brace for layoffs, service reductions, and closures as sweeping federal cuts take effect.

Nonprofit organizations and healthcare providers across the Midwest are facing an unprecedented crisis as sweeping federal budget cuts ripple through their communities, forcing layoffs, service reductions, and the closure of essential programs. From South Dakota’s rural towns to the bustling neighborhoods of Northeast Ohio, the impact is both immediate and deeply personal for thousands of vulnerable Americans who rely on these services for food, education, and healthcare.

According to MitchellNow, the consequences of these cuts have been swift and severe in South Dakota. Three of the state’s most vital nonprofits—South Dakota Public Broadcasting (SDPB), Feeding South Dakota, and the South Dakota Humanities Council—are among the hardest hit. SDPB, a lifeline for news and educational programming in rural areas, announced it will cut a quarter of its workforce. Feeding South Dakota, which supplies meals to families in need, is slashing its meal budget by more than one million meals. Meanwhile, the Humanities Council has already reduced staff and ended all grant programs, leaving cultural and educational initiatives in jeopardy.

The fallout is not limited to job losses. With canceled grants and reduced programming, especially in rural areas, the sense of uncertainty is palpable. Nonprofit leaders are sounding the alarm, urging donors, volunteers, and state officials to help fill the gap as they await the uncertain prospect of future federal relief. The message is clear: without immediate intervention, the most vulnerable populations—children, the elderly, and low-income families—will bear the brunt of these cuts.

The situation is equally dire in Ohio, where U.S. Representative Emilia Sykes recently visited the Akron Health Center and PPRx pharmacy to highlight the looming threat federal budget cuts pose to healthcare services. As reported by Cleveland.com, Sykes chose the Planned Parenthood affiliate in her district as a stark example of how the cuts will affect access to preventive and reproductive healthcare for tens of thousands of Ohioans.

The Republican-backed “One Big Beautiful Bill Act” includes a provision that would strip Planned Parenthood of Medicaid funding. While federal law already prohibits the use of federal funds for abortion services except in cases of rape, incest, or life endangerment, GOP critics argue that the money is fungible and have long sought to exclude the organization from Medicaid participation. Sykes, however, emphasized the broader impact: “Where will these folks go? Just because the federal government made a decision to refuse to reimburse Planned Parenthood for the services, does not mean that people stop needing the services,” she told Cleveland.com.

Planned Parenthood of Greater Ohio, which operates 12 health centers and two surgical centers throughout the state, faces a staggering $10 million loss in funding. Erica Wilson-Domer, President and CEO of Planned Parenthood of Greater Ohio and Planned Parenthood Advocates of Ohio, explained the gravity of the situation: “A $10 million loss in funding is just not sustainable.” The organization has already closed a center in Cleveland and is currently in effects bargaining with its union regarding layoffs. Unionized members have asked executives to take a 25% pay cut in hopes of retaining frontline staff, but the future remains uncertain.

The potential consequences extend far beyond Planned Parenthood’s walls. More than 50,000 Northeast Ohioans could lose access to affordable reproductive and preventive health services, including birth control, cancer screenings, and STI testing, if the funding is not restored. Sykes warned that the cuts would force her most vulnerable constituents to seek more expensive healthcare or go without treatment entirely, further straining an already fragile safety net. She also highlighted the district’s high infant mortality rates, suggesting that the loss of these services could have devastating long-term effects.

The impact on employment is another layer of the crisis. The healthcare industry is one of the largest employers in Sykes’ district, and the loss of jobs at Planned Parenthood and related organizations could have a domino effect. “Not only are we talking about the patients, we’re talking about individuals who no longer have a job, who are not going to be employed, who then may also need those services like SNAP, like Medicaid, that are also on the chopping block,” Sykes said. The threat to the Supplemental Nutrition Assistance Program (SNAP) and Medicaid means that newly unemployed workers may find themselves without a safety net just as they need it most.

Some of the most troubling aspects of the federal budget cuts, Sykes noted, are their timing and scope. Many provisions were “very purposely” written to take effect only after the 2025 midterm elections, potentially masking the full extent of the pain until after voters have gone to the polls. Yet, the effects are already being felt. In Canton, for example, Altcare removed about 6,000 people from Affordable Care Act subsidies due to related legislative changes—a preview, Sykes warned, of what’s to come. “That is not going to be unusual or rare,” she said.

Back in South Dakota, the situation is similarly precarious. The loss of federal funding has forced organizations to make tough choices about where to allocate their dwindling resources. SDPB’s decision to cut a quarter of its workforce will inevitably mean less local news coverage and fewer educational programs, especially in rural communities that already struggle with limited access to information. Feeding South Dakota’s reduction of more than one million meals from its budget could leave thousands of families facing food insecurity, particularly as inflation continues to drive up the cost of groceries. The Humanities Council’s elimination of grant programs threatens to stifle cultural and educational initiatives that enrich communities and preserve local heritage.

Nonprofit leaders in South Dakota are pleading for help. They’re calling on donors, volunteers, and state officials to step up and bridge the funding gap, at least temporarily. But with federal relief uncertain, the road ahead looks rough. The cuts are already causing layoffs, canceled grants, and reduced programming, and the long-term consequences could be even more severe if additional support does not materialize soon.

As the effects of the federal budget cuts ripple through both South Dakota and Ohio, the stories of lost jobs, shuttered programs, and diminished services underscore the real-world consequences of political decisions made in Washington. For the families who rely on food banks, the patients who depend on affordable healthcare, and the communities that benefit from educational and cultural programming, the stakes could not be higher. The coming months will test the resilience of these organizations—and the generosity of the public—as they work to fill the gaps left by a shrinking federal safety net.