Last Updated on August 5, 2025 by Bertrand Clarke
In a quiet office in Salt Lake City, the team at The Center for Economic Opportunity & Belonging is grappling with a seismic shift in their operations. The nonprofit, dedicated to closing opportunity gaps in income, education, health, and housing across Utah communities, recently faced a significant setback: the loss of a $1.2 million federal grant. This funding, secured in 2024 from the U.S. Department of Health and Human Services, was intended to support community programs aimed at fostering economic mobility. However, a recent executive order signed by President Donald Trump on his first day back in office in 2025 has upended those plans, redirecting federal priorities away from diversity, equity, and inclusion (DEI) initiatives.
The executive order, part of a broader push to eliminate DEI programs across federal agencies, has sent shockwaves through nonprofit organizations nationwide, particularly those reliant on federal grants. For The Center for Economic Opportunity & Belonging, the rescinded grant has forced a reevaluation of its programs and a scramble to find alternative funding sources. “We were blindsided,” said Bailey Rivera-Wymes, the nonprofit’s senior project manager and director of marketing, in an interview on July 30, 2025. “We had contracts signed, plans in motion, and communities counting on us. Now, we’re left navigating a new landscape with fewer resources.”
A Changing Federal Landscape
The Trump administration’s move to eliminate DEI programs stems from a belief that such initiatives promote race- and sex-based preferences, which the administration argues are contrary to merit-based principles. The executive order, signed on January 20, 2025, mandates that federal agencies review and eliminate funding for programs deemed to prioritize DEI over other objectives. This policy has not only affected nonprofits like The Center but has also sparked a broader debate about the role of diversity-focused initiatives in addressing systemic inequalities.
In Utah, the impact is particularly acute. The state’s nonprofit sector, which employs over 80,000 people and contributes $6.5 billion annually to the economy, relies heavily on federal grants to sustain community programs, according to a 2024 report from the Utah Nonprofits Association. The loss of funding for The Center for Economic Opportunity & Belonging is just one example of how federal policy changes are reshaping the nonprofit landscape. Across the state, organizations are now faced with the challenge of complying with new federal certification requirements that prohibit the use of terms like “diversity” or “inclusion” in grant applications, creating confusion and uncertainty.
The Center’s Mission and the Impact of the Loss
Founded in 2018, The Center for Economic Opportunity & Belonging has worked to address disparities in Utah’s urban and rural communities. Its programs include job training for low-income residents, educational workshops for first-generation college students, and housing assistance for families facing economic hardship. The $1.2 million grant was set to fund a multi-year initiative to expand these efforts, particularly in underserved areas like West Valley City and rural Cache County. The initiative aimed to serve 2,500 individuals annually, with a focus on improving access to vocational training and affordable housing.
The sudden rescission of the grant has forced the organization to scale back its ambitions. “We’re not just talking about numbers on a spreadsheet,” Rivera-Wymes emphasized. “This funding was going to help real people—families who are struggling to make ends meet, students who need a leg up to get to college. Now, we’re looking at cutting programs that were ready to launch.” The nonprofit has already laid off three staff members and postponed two major projects, including a planned community center in Ogden that would have provided job training and childcare services.
A Broader Trend in Federal Funding
The Center’s experience is part of a larger pattern of federal funding disruptions under the Trump administration. In April 2025, the U.S. Department of Transportation placed holds on several Utah transportation projects, including a $400,000 grant for pedestrian safety improvements in Copperton and White City. These projects, part of the Safe Streets and Roads for All campaign, aimed to reduce traffic fatalities by implementing speed bumps and crosswalks. The funding holds, attributed to reviews of compliance with new federal guidelines, have left local officials without a clear timeline for resuming work.
Similarly, the National Institutes of Health (NIH) has terminated hundreds of diversity grants aimed at supporting young researchers from underrepresented backgrounds. These grants, which supported students from rural areas and low-income families, were designed to diversify the scientific workforce. The cancellations have sparked criticism from researchers who argue that the cuts disproportionately harm communities that align with the administration’s voter base, including rural, predominantly white areas.
Community Response and Adaptation
In response to the funding loss, The Center for Economic Opportunity & Belonging is exploring alternative revenue streams. The nonprofit has launched a crowdfunding campaign, aiming to raise $500,000 by the end of 2025 to sustain its core programs. Local businesses, including Zions Bank and Intermountain Healthcare, have pledged $150,000 in matching funds to support the effort. Additionally, the organization is partnering with state agencies to secure funding through Utah’s Community Development Block Grant program, which provides resources for economic development in low-income areas.
Community leaders are also rallying behind the nonprofit. Salt Lake City Mayor Erin Mendenhall, who has championed initiatives to improve transit access and affordable housing, called the grant rescission “a step backward for equity in our state.” In a statement on August 3, 2025, Mendenhall urged federal officials to reconsider the policy, arguing that it undermines efforts to address longstanding disparities. “When we cut funding for programs that lift up our most vulnerable communities, we’re not just cutting budgets—we’re cutting opportunities,” she said.
The National Debate Over DEI
The Trump administration’s anti-DEI policies have ignited a national conversation about the value and impact of diversity initiatives. Critics argue that DEI programs are essential for addressing systemic barriers faced by marginalized groups. A 2024 study by the Urban Institute found that DEI-focused programs in education and workforce development increased economic mobility by 15% for participants from low-income backgrounds. Supporters of these programs contend that eliminating them risks exacerbating inequality, particularly in states like Utah, where racial and economic disparities persist.
On the other hand, proponents of the administration’s policies argue that DEI initiatives often prioritize identity over merit, creating inefficiencies and unfair advantages. A 2025 report from the Heritage Foundation, a conservative think tank, claimed that federal DEI programs cost taxpayers $1.2 billion annually while yielding minimal measurable outcomes. The report has been cited by administration officials as justification for the executive order, though critics note that it relies on selective data and overlooks the long-term benefits of diversity-focused initiatives.
Looking Ahead
For The Center for Economic Opportunity & Belonging, the path forward is uncertain but not without hope. The nonprofit is exploring partnerships with private foundations and local governments to bridge the funding gap. Rivera-Wymes remains optimistic, citing the resilience of Utah’s nonprofit community. “We’ve faced challenges before, and we’ll find a way to keep serving our communities,” she said. “But it’s going to take creativity, collaboration, and a lot of hard work.”
As the 2025 fiscal year progresses, the broader implications of the Trump administration’s policies will continue to unfold. Nonprofits across the country are bracing for further funding reviews, with the Department of Homeland Security currently examining billions of dollars in grants to ensure compliance with immigration and DEI policies. In Utah, where community organizations play a critical role in addressing social and economic challenges, the loss of federal support could have lasting consequences.
For now, The Center for Economic Opportunity & Belonging is focused on adapting to the new reality. Its staff is working overtime to rewrite grant applications, avoiding terms that might trigger federal scrutiny while still advocating for the communities they serve. As Rivera-Wymes put it, “We’re not giving up. This is about the people we serve, and we’ll keep fighting for them, no matter what.”
