Nonprofits serving immigrant communities are navigating a changing landscape in 2025. Early in the year, federal actions created significant uncertainty—particularly around funding for legal services supporting unaccompanied minors.

While some of those initial suspensions have since been rescinded through court rulings and administrative updates, the broader environment remains complex. For organizations providing legal aid, child welfare services, or community education, the challenge is balancing high demand with evolving compliance requirements.

Current Landscape

In February, a federal stop-work order affecting legal services for unaccompanied minors was rescinded after legal challenges, allowing programs to resume. Yet nonprofits continue to face operational and financial strain. Some contracts have been reduced or terminated, and funding remains uncertain for providers who depend heavily on federal support.

For children navigating the immigration system, representation is critical. Studies show that minors with legal counsel are far more likely to receive protection and stability than those representing themselves. Even with some services restored, capacity is limited, and many nonprofits are reporting higher demand than they can meet.

Impact on Nonprofits

The effects on nonprofits extend beyond funding:

• Operational strain: Legal service providers face case backlogs, higher staffing demands, and fluctuating contract structures.
• Compliance pressure: Organizations are navigating new reporting and audit requirements tied to federal funding streams.
• Community trust: Families experiencing uncertainty are turning to nonprofits not only for legal help, but also for wraparound support such as education, healthcare referrals, and workforce assistance.

These combined pressures underscore the importance of building adaptable systems that can sustain services even when federal policies shift.

Strategies for Resilience

Despite challenges, nonprofits are demonstrating creativity and resilience. Key strategies include:

• Diversifying Revenue
  Many organizations are turning to private philanthropy, corporate partnerships, and community fundraising to reduce reliance on federal contracts. Digital giving platforms and transparent reporting have proven effective in engaging new donors.
• Leveraging Partnerships
  Legal aid groups are expanding pro bono networks and working closely with schools, healthcare providers, and faith-based organizations. By broadening their partnerships, nonprofits can extend their reach and strengthen safety nets for children and families.
• Integrating Technology
  Case management systems, virtual legal clinics, and online education platforms are helping organizations manage higher volumes of clients while keeping costs under control.
• Community Engagement
  Building trust remains essential. Walk-in clinics, know-your-rights workshops, and collaborative programming with local partners provide both immediate support and long-term stability for families.

Looking Ahead

While the policy environment remains dynamic, the nonprofit community has shown remarkable resilience. The ability to adapt funding strategies, embrace technology, and strengthen community partnerships is proving critical.

At SOAR Partners, we believe lasting solutions emerge from collaboration across sectors. By focusing on sustainable models and innovative strategies, nonprofits can continue to meet the needs of vulnerable children—ensuring they have access to protection, advocacy, and opportunity regardless of shifting policies.