The Impact of Federal Cuts on Nonprofits in McDowell County, WV

In McDowell County, West Virginia, the recent federal cuts introduced by the One Big Beautiful Bill Act pose a devastating threat to local nonprofits that serve as essential lifelines for the community. With a population of just 17,000, many residents are reliant on federal programs and the nonprofits they support for their basic needs.

A Historical Context

Historically, McDowell was a vibrant coal-producing hub, with its population peaking at about 100,000 in 1950. Over the decades, however, the decline of the coal industry has severely impacted both the county’s tax base and its population. Today, over half the children in McDowell receive benefits from the federal Children’s Health Insurance Program, and about a third of the senior citizens rely on Medicaid. Almost half of the county’s residents depend on the Supplemental Nutrition Assistance Program (SNAP) for food, a program originally tested in this area during the Kennedy administration.

Dire Strains from Federal Cuts

Recent eligibility restrictions on SNAP, enacted by President Trump’s domestic policy bill, will particularly harm counties like McDowell, where more than a third of residents live below the federal poverty line. Rosemary Ketchum, executive director of the West Virginia Nonprofit Association, expressed deep concern. “These federal cuts are starving people,” she lamented.

The impacts of recent executive orders barring various federal grants have been detrimental. Many of West Virginia’s 9,000 nonprofits have resorted to laying off staff or utilizing reserves to keep operations afloat. However, these reserves are often minimal. According to data from the Urban Institute’s National Center for Charitable Statistics, the seven nonprofits in McDowell County operate on a mere 3% margin. If federal support were to vanish completely, these organizations could be forced to close their doors.

No Backup Plans

In a poorer state like West Virginia, nonprofit organizations often lack a backup plan. Kathy Gentry, executive director of Safe Housing and Economic Development (SHED), emphasized this point. Her organization, which manages 94 housing units for the elderly and disabled, has already endured pay cuts due to funding restrictions tied to the federal agenda.

SHED is currently operating at a loss; its 2023 tax records indicate expenses exceeding revenues by nearly $200,000. “We’re in a quandary here — all nonprofits are,” Gentry stated. “Are we going to exist? Will we have to dissolve?”

Access to Health Care and Internet

Efforts to support economic development in coal regions are ongoing, led by organizations like the Just Transition Fund. Since its inception, the fund, backed by the Rockefeller Family Foundation, has helped coal communities secure over $2 billion in federal grants. Heidi Binko, who oversees the fund, aims to continue attracting resources to aid high-poverty areas.

Despite the availability of some federal resources—such as $50 billion in health care grants earmarked for rural providers—the future remains uncertain. The recent domestic policy bill lacks the equitable focus of the Biden administration’s previous infrastructure initiatives, prompting concerns about the sustainability of health facilities reliant on Medicaid.

In McDowell County, access to broadband internet is also a pressing issue. Programs that were intended to promote digital literacy have recently been terminated, further limiting opportunities for local residents. Currently, 20% of households in McDowell lack a reliable internet connection.

Challenges in Clean Water Access

Access to basic infrastructure such as clean water remains a critical issue in McDowell. According to reports from DigDeep, a nonprofit focused on improving water access, hundreds of residents may lack a dependable water supply. The exact number is difficult to ascertain due to insufficient oversight regarding the safety of drinking water.

DigDeep collaborates with local utility providers to extend water lines and install wastewater treatment systems for numerous residents facing inadequate sanitation. As highlighted by DigDeep’s CEO, George McGraw, the historical ties between the coal industry and local infrastructure create significant challenges today.

As coal companies exited the county, they left behind aging infrastructure, leading many residents to rely on unreliable sources for drinking water. With potential budget cuts to rural water programs looming, the threat to water access could escalate, leaving many residents without this vital resource.

Concluding Thoughts

The ongoing transformation in McDowell County faces significant hurdles due to federal policy changes. Without the support of nonprofits and community organizations, many residents risk losing essential services that maintain their health and well-being. As the situation develops, community leaders are calling for urgent action to ensure that these vital resources remain available to those who need them most.