Title: Rural Organizations and Youth Face Uncertainty Amid Federal Funding Freeze
After overcoming challenges such as teen homelessness and domestic violence in West Virginia, 23-year-old Ireland Daugherty had finally achieved stability with her own apartment, a job, and pursuing a four-year degree. Meanwhile, 36-year-old Ashley Cain was marking four years of sobriety and contributing to a nonprofit focused on repurposing abandoned factories and coal mines for manufacturing and solar projects.
Federal programs had been crucial in providing support and employment opportunities for Daugherty and Cain in one of the nation’s poorest states, where nonprofits serve essential roles in delivering services like healthcare, education, and economic development.
Recently, the White House decision to freeze spending on federal loans and grants created uncertainty for organizations nationwide, particularly impacting nonprofits in impoverished and rural states like West Virginia. Although the freeze was later reversed by the Trump administration, a federal appeals court revealed that not all federal funding had been fully restored.
West Virginia’s heavy reliance on federal funds to tackle deep-seated issues makes it especially susceptible to the broad actions of the new administration, which has enjoyed strong support in a state where Trump has consistently won over the majority. Challenges such as high rates of opioid overdose deaths, children in foster care, obesity, diabetes, and child poverty, coupled with infrastructure problems like contaminated water and limited broadband access, underline the state’s vulnerability.
Various projects, including those supported by Cain’s organization Coalfield Development, had been put on hold due to the funding uncertainty. These projects, which aimed to revitalize communities and create jobs, were critical for West Virginia’s economic growth. The pause in funding has left organizations like Coalfield Development in limbo, unsure of how to proceed with their vital work.
CEO Jacob Hannah, whose personal connection to coal mining drives his commitment to workforce training programs, expressed the challenges faced by his organization in navigating the funding uncertainty. In Huntington, West Virginia, projects like the conversion of a former coal train factory into a manufacturing hub and business space have been stalled, impacting local workers and the community’s economic prospects.
The current atmosphere at Coalfield Development reflects the heaviness of the situation, with employees like Cain feeling the weight of uncertainty in their daily work. As they wait for clarity on federal funding, the future of vital projects and job opportunities in West Virginia hangs in the balance.
“It could happen has really affected people’s attitudes,” Cain said. “I’ve seen that a lot of people that come here, that do face barriers, they’re sometimes hopeless they’re not going to be able to build a better life.”
In Morgantown, Daugherty was losing sleep because Libera, the nonprofit she works for, hadn’t received reimbursement for a U.S. Department of Health and Human Services grant it uses. Daugherty, who was placed in state care at 16, said lack of support, low self-esteem, trauma, and high rates of depression make the transition difficult for many. When the organization didn’t receive its scheduled Jan. 31 payment, it had to freeze spending, including for a mental health program serving middle school girls.
With the high need in her area, Daugherty said there are “executive orders right now that are extremely dangerous to the way of life for West Virginians.” Many groups are still in limbo. The National Council of Nonprofits CEO and President Diane Yentel said Thursday that some organizations had seen funds restored but many others across the country were still waiting in limbo, and “unfortunately, much of the confusion, chaos, and harm that the directive unleashed hasn’t ended.” The council was among the organizations that sued over Trump’s orders.
The crisis has forced some organizations into quick spending decisions that could have long-term implications. The Appalachian Center for Independent Living, which provides support to people with disabilities, let staff go, only to rehire them days later when it received a reimbursement. West Virginia Food and Farm Coalition said it spent a decade building trust with sometimes-skeptical farmers by offering technical support and helping them market their products.
“If that all goes away or if that’s all significantly paused, they will lose trust in us,” Executive Director Spencer Moss said. Ryan Kelly, executive director of Rural Health Associations in Mississippi, Alabama, and Arkansas, said he thinks the federal freeze was the wrong approach but agrees with what the Trump administration is trying to do.
“Diving in and trying to find the sources of waste, I think that’s a very good thing,” he said. “When you’re making changes, there will be problems that happen. But I’m cautiously optimistic that the good will outweigh the bad and there will be some good results coming out of this.” Alecia Allen, who runs a therapy practice and grocery store in a low-income neighborhood in West Virginia’s capital, said lately it’s felt like she has been dealing with one crisis after another.
She didn’t receive therapy appointment reimbursements for almost two weeks from Medicaid, which insures the majority of her patients. The delay was unusual, she said. Allen wasn’t getting answers from federal agencies about the grants helping her work with farmers to provide local, healthy food to her community at a lower cost. Then a vendor she buys from to stock store shelves said her weekly bill was going up from $500 to $850 because of
