The City of Carbondale’s decision to scale back nonprofit funding has sparked concern among organizations that rely heavily on city support to serve vulnerable residents.

In a letter sent on Oct. 31, 2025, City Manager Stan Reno announced that community agency funding will be significantly reduced beginning in Fiscal Year 2027. The change follows the exhaustion of federal American Rescue Plan Act funds, which previously helped sustain many local programs. Under the new rules, only groups funded in FY26 will qualify for FY27 support — and even then, they will receive just 50% of last year’s amount. No new applicants will be considered. For some organizations, the cut is devastating.

Deborah Woods, Vice President of Women for Change at the Eurma C. Hayes Center, held the annual Stepping Into The Essence of Elegance fundraiser on Nov. 15, a few weeks after they were notified about the budget cut. Woods said the loss of funding threatens the core of their mission.

“It represented three-quarters of our budget, to tell you the truth,” Woods said. “It goes for the sewing room and our other projects, as well as the community efforts we do — whether it’s somebody burned out of their home or someone who lost their job and needs help.”

Woods said the city told them simply that the money is no longer in the budget.

“I don’t know what we’re going to do,” she said. “There are a lot of organizations that are going to be lost without that money.”

She also questioned the city’s spending priorities. 

“We’re building this big structure for concerts, but that doesn’t seem to help the community at large,” Woods said. “Next year, some groups won’t get anything. That’s going to be a downfall for what nonprofits do.”

Carbondale Mayor Carolin Harvey acknowledged that the cuts place nonprofits in a difficult position, but said the city is trying to stabilize its long-term financial outlook. 

“ARPA funding has been exhausted, and it’s just not in the city’s budget to continue to fund nonprofits,” Harvey said. “The funding was never to be the main source of funding for any agency.”

Harvey said the city will continue looking for ways to support nonprofits, even if direct funding is reduced. The mayor also encouraged nonprofits to apply for private or state grants. Carbondale City Council member Nathan Colombo said the cuts did not come as a surprise to city staff, though the timing may have caught organizations off guard.

“I think this is something that had been planned for at least a couple of years now,” Colombo said. “These were conversations that had occurred in some way, but this was everything finally coming down all at once and saying this funding will not continue to occur in this way.”

As Carbondale moves into FY27, many nonprofits say they will need to reduce programs, seek new funding, host more fundraisers or fight for the restoration of city support.

“We’re not the only organization,” Woods said. “A lot of groups are hurting — and the community will feel it.”

Staff reporter Yahri Edmond can be reached a [email protected]

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