Posted on February 6, 2006

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Cuts Will Decrease Appropriations to Nonprofits by $1 Billion, Study Finds

By enacting nearly two-thirds of President Bush's proposed spending cuts, Congress will trim appropriations to programs of interest to nonprofit organizations by $1 billion, or 3.3 percent, after adjusting for inflation, a new report from the Nonprofit Sector and Philanthropy Program (NSPP) of the Aspen Institute finds.

Written by NSPP director Alan Abramson, Lester M. Salamon, and John Russel, the report, FY 2006 Federal Appropriations Recap: Impact on Nonprofit Organizations, estimates that discretionary appropriations for education programs of interest to nonprofits will fall by $2.2 billion (3.8 percent) in the current fiscal year, with most of the reduction affecting elementary and secondary education. Similarly, health service programs will receive $1 billion less than in the previous fiscal year, even though Congress voted not to cancel several programs that were targeted for elimination by the administration. The two smallest categories of interest to nonprofits — the environment and arts and culture — were reduced by 7.4 percent and 2.5 percent, respectively; total reductions for both totaled $100 million.

Not all budget categories of interest to nonprofits were cut, however. International aid, for example, received a 4.9 percent, or $366.7 million, increase over fiscal year 2005, while appropriations for income assistance programs were increased by $500 million.

To read or download the complete report (2 pages, PDF), visit: http://www.nonprofitresearch.org/usr_doc/FY_2006_Appropriations.pdf.

“Congressional Appropriators Approve Two-Thirds of President Bush's Proposed FY 2006 Cuts in Federal Funding of Charities.” Nonprofit Sector Research Fund Press Release 2/02/06.

Primary Subject: Public Affairs
Location(s): National, Washington, D.C.

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