A federal funding freeze is putting the hurt on Farm Fresh Rhode Island, and now the nonprofit’s administrators are looking for any other funding sources to make ends meet.
The Providence-based group, which helps connect farmers and food producers with consumers through farmers markets and sustainability programs, recently had to scratch plans to hire four people, and then it laid off four people from its existing staff of more than 40.
“Everything matters at this point,” Delite Primus, Farm Fresh’s director of advancement, said of the organization’s search for other fundraising sources. “We’re exploring all grants and revenue-making operations at this time.”
It appears some help could be on the way for Farm Fresh and other Rhode Island nonprofits that are facing financial hardships caused by the sudden pullback on federal funding in recent weeks.
United Way of Rhode Island Inc. announced in March that at least $500,000 in grant money will be made available to local groups that have been crippled by money freezes and cuts ordered by the administration of President Donald Trump.
United Way was slated to issue a request for proposals to nonprofits in late March, and grants of between $25,000 to $50,000 are expected to be awarded to organizations that provide “the most basic of needs” for Rhode Island families, United Way said.
The grants are part of the “United is the Way” initiative, which will also include the formation of a resource center that will offer nonprofits pro bono legal work, technical assistance and business development strategy, according to Nancy Wolanski, director of the United Way’s Alliance for Nonprofit Impact.
Wolanski says the initial $500,000 is coming from donations and United Way’s cash reserves. It’s hoped additional money will be raised for the initiative.
Anxiety over the federal funding freeze has been high in the nonprofit sector.
North Kingstown-based nonprofit Edesia Inc. – which produces ready-to-use food to combat malnutrition worldwide – recently had to lay off 10% of its staff because of a lack of U.S. Agency for International Development payments it had been dependent on.
Other local organizations are in similar situations.
Leaders of the nonprofit Woonasquatucket River Watershed Council, headquartered in Providence, say United Way reached out to them before announcing the grant in an effort to hear their concerns.
The council says it has not had to cut staff yet; however, the “programs we were planning on starting have stopped,” said Alicia Lehrer, WRWC executive director.
“We were part of a meeting with United Way earlier [in March],” Lehrer said. “It was a group of nonprofits getting together, and the focus was equity conversations because federal equity is off the table these days. They totally are stepping up, and I really appreciate that about them. They don’t have to follow any federal funding guidelines; they only fund what they care about.”
Rhode Island nonprofits employ 16% of the state’s private sector workforce, according to United Way, equating to more than 70,000 Ocean State residents.
“There is a new [2026] federal budget coming up too, and we are expecting significant cuts,” Wolanski said. “So how do we ensure the services Rhode Island needs stay going forward? How do we ensure nonprofits can operate without having to reduce staff?”
For many Rhode Island nonprofits in need, the answer could be charitable grants from larger organizations. According to United Way, 42% of nonprofits have less than three months of cash reserves. As a general guideline, nonprofits should aim to have three to six months of operating expenses in cash reserves, the National Council of Nonprofits reports.
“Resources are drying up; what we used to be able to count on from federal and state funding are being cut,” Wolanski said. “Nonprofits need to rethink their business model, and this resource center will help them with things like fundraising efforts to continue operations and workshops on staff restructuring. Because otherwise, we know there will be more layoffs coming.”
Meanwhile, other charities are similarly pitching in to sustain Rhode Island’s nonprofits amid the funding freeze. The Rhode Island Foundation has announced it will be offering a $3 million grant for nonprofits for the same reason as United Way.
At Farm Fresh, Primus says the effects of the cuts are going well beyond her organization.
“It’s impacting those we work with, local food banks, school lunch programs, local farmers, fisherman, and everyone who they serve,” she said. “That’s the most troubling aspect of all this.”
