Korean American nonprofits hit hard by federal funding cuts

Funding cuts by the Trump administration targeting health, welfare, and immigrant-related programs have placed Korean American nonprofit organizations on high alert. Several groups say their budgets for next year will drop by more than 5 percent, forcing them to explore emergency measures.

According to Korean American nonprofit organizations, the State of California has notified groups that it will halt certain funding streams as a result of reduced federal support for health and immigrant services. The programs most affected include Medi-Cal services, youth education and community welfare, and advocacy efforts for immigrant and minority communities.

Nonprofits that serve uninsured immigrants through Medi-Cal are especially concerned. Beginning January 1, new enrollment for undocumented immigrants will be suspended, creating immediate financial pressure for clinics that rely on this funding.

The KHEIR Clinic, a Koreatown-based health and social services provider, budgeted $39 million for next year but expects cuts of 10 to 20 percent. Executive Director Erin Park said, “Federal funding passes to nonprofits through the state. Although $1.88 million in federal support is confirmed, we’ve already seen a 15 percent drop in Medi-Cal patients due to halted renewals and fewer clinic visits. We’re trying to reduce spending to prepare for additional cuts, but the uncertainty is growing.”

Park added that the federal government plans to closely monitor whether grant funds are used for undocumented residents. “County health officials and nonprofits met to find ways to support undocumented patients, but we still don’t have a viable solution,” she said.

Smaller nonprofit clinics that depended heavily on state and federal funding have already begun downsizing or closing their doors. Mark Lee, director of the Mission City Community Network (MCCN), noted, “Some clinics expanded after the state provided Medi-Cal coverage for undocumented immigrants over the past two years. But since related funding will be cut next year, many are facing financial strain. Clinics serving Latino Medi-Cal patients have seen their caseloads drop by more than 30 percent.”

Education and advocacy programs for Korean American and other minority communities are also at risk. Johng Ho Song, executive director of the Koreatown Youth and Community Center (KYCC), said the organization has already lost $1.4 million in government support for the 2024–25 fiscal year—about 6 percent of its total budget. “Both federal and state agencies are notifying us of cutoffs only two or three months in advance. Youth education, arts and culture programs, and various prevention services have been hit hardest,” he said.

Song added that KYCC had consistently increased its annual program funding by 5 to 10 percent in past years, but next year’s budget will likely shrink. “Reduced funding affects hiring and job retention. We’re searching for new funding sources wherever we can.”

The Korean American Federation of Los Angeles was also notified that its government-supported hate-crime prevention program will end after June 2025. Secretary General Jeff Lee said, “Minority nonprofits submitted a joint petition urging the government to continue support, but the outlook is bleak. Sudden, blanket cuts will harm our communities.”

Korean American nonprofits fear that additional reductions are likely during the remainder of the Trump administration.

BY HYOUNGJAE KIM   [kim.ian@koreadaily.com]