MCN speaks at press conference on impact of federal funding freeze

Friday, January 31, MCN executive director Nonoko Sato spoke at a press conference in Minneapolis with state leaders about the devastating impact of the federal funding freeze.

In addition to MCN, speakers included Representative Ilhan Omar, Minneapolis Mayor Jacob Frey, Hennepin County Commissioner Ilene Fernando, and Minneapolis Police Chief Brian O’Hara.

To the Minnesotans who receive critical services through a nonprofit – communities who rely on public safety, parents who utilize child care, families living in affordable housing, patients receiving critical medical treatment – and to nonprofit employees across the state working day-in-and-day-out to support our communities – we see you and we will do everything in our power to protect you.” – Nonoko Sato, MCN executive director

MCN’s full remarks

Minnesota is home to almost 9,000 nonprofits, employing 376,000 people – making up 13.4% of the state’s workforce. Minnesota nonprofits generate more than $100 billion to the state’s economy every year and serve millions of Minnesotans every day with services including childcare, food pantries, public safety, housing, financial assistance, and more. Nonprofits directly and indirectly impact every Minnesotan.  

To say the last couple days have been filled with confusion, fear, and panic is an understatement. This decision was a direct threat to Minnesotans and the nonprofit sector’s ability to provide crucial services to vulnerable communities and maintain our daily operations.  

We’re hearing from nonprofits in every community in the state; here are a few examples of the direct, disastrous impact on nonprofits: 

  • One nonprofit operates the only domestic violence shelter and parenting time center in five regions. Without these federal funds, they would be unable to maintain critical services such as 24/7 shelter advocacy, supervised visitation and safe exchange services, and direct client assistance, leaving survivors without the support they need to rebuild their lives. 
  • Another organization that operates two kitchens six days a week would not be able to purchase ingredients and continue serving Minnesota neighbors the medically tailored meals they rely on. 
  • Having already experienced a drastic cut to their federal funding in 2025, an organization would have to restructure, lay off staff, and limit the services they can provide.  

As a direct result of immediate action from people here in Minnesota and across the country, original OMB memo was rescinded on Wednesday. Nonprofit advocacy is powerful, and the federal government heard our collective voice that we would not stand by and let this freeze threaten millions of vulnerable people and the ability for nonprofits to serve and employ hundreds of thousands of people right here in Minnesota. 

Yet, we are under no illusion that it will last. The Administration is likely to take further action with the same harmful impact on nonprofits and Minnesota communities – and MCN and national partners like the National Council of Nonprofits, are ready to defend the amazing and critical work of nonprofits across the state.  

To the Minnesotans who receive critical services through a nonprofit – communities who rely on public safety, parents who utilize child care, families living in affordable housing, patients receiving critical medical treatment – and to nonprofit employees across the state working day-in-and-day-out to support our communities – we see you and we will do everything in our power to protect you. 

This isn’t the end, but it is an important victory and a sign of our resilience in standing up for a strong and vibrant state where everyone can thrive. 

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