We’ve been getting a lot of questions about how some of the recent federal-level executive actions have impacted us at YouthZone. While these conversations are nuanced and complex, they tend to revolve around two distinct topics: the safety and security of our staff and clients, and the financial stability of the organization itself. I hope this article will answer some of our most frequently asked questions and inspire you to take action.
Many of the federal policies enacted by the Trump Administration this year were put into place to “level the playing field” between distinct groups of people living in the United States. We have noticed that the actual outcome of these policies has been to isolate marginalized communities, particularly Hispanic immigrants, and LGBTQ+ people. Many YouthZone clients and their families have expressed their hesitation to self-identify as a member of one of these groups out of fear of retaliation, which leads to a decrease in their access to critical services. Moreover, the federal policies tend to change weekly, daily, and even hourly, which makes it challenging for us to respond calmly and consistently as individuals, an organization, and a community.
Nonetheless, despite the uncertainty, we’re proud to continue supporting all walks of life at YouthZone. No one is ever denied access to our services based on their nationality, immigration status, language, gender, sexual orientation, or other personal identifier. We pride ourselves in advocating for these groups. Earlier this year we hosted a “Know Your Rights” seminar for those who had questions about immigration status and the judicial system, and plan to host a similar event for LGBTQ+ rights later this year. Our staff are trained in culturally appropriate and trauma informed care, ensuring that all people feel welcome when they walk through our doors.
Another common question we’ve been getting is: “Did you lose federal funding?” Thankfully, we don’t receive any direct federal grants, which means we are immune to the most aggressive funding cuts. However, our budget includes a significant amount of state funding, some of which is federal money that has been passed through to us via the Colorado state government. Our state partners, which include the Division of Criminal Justice, Division of Youth Services, Department of Public Health and Environment, and more, have informed us that our funding will not be impacted until July 2026 at the earliest, when the state’s 2026/2027 fiscal year begins. While it’s hard to say how much – or even if – funding from these sources will be lost, the state is currently projecting a $1 billion shortfall next year, so the writing is on the wall.
Another devastating change to our funding structure is the $1 trillion cut to Medicaid funding. While Medicaid reimbursement is currently a very minimal part of our income, our five-year growth strategy relies heavily on increasing the number of substance education sessions that we bill to Medicaid. While limited access to Medicaid funds won’t make our growth strategy impossible, it will certainly present a challenge.
So how is YouthZone coping with these financial changes? We’ve spent the last five years diversifying our revenue stream so we’d be ready for this exact scenario. We’ve developed new financial relationships with local governments and school districts and have secured line-item funding in town budgets where we’ve been operating for more than four decades. We’re also seeking new, nationwide grants in addition to local and regional support since our work is so unique. We revamped our client payment policy to include an income-driven plan, ensuring that we’re collecting a fair and reasonable amount from all of our clients. Finally, we have an amazing group of local business and individuals who support and ur work via charitable donations. One silver lining of the Big Beautiful Bill’s tax changes is that you no longer need to itemize in order to claim up to $1,000 in charitable deductions. Supporting local charities has never been easier, and frankly, it’s a great time to do so.
If you’re interested in learning more about our work, I encourage you to visit www.YouthZone.com. You can do a deep dive into our funding sources by reading our 2024 Annual Report at www.YouthZone.com/financials, and you can contribute by visiting www.YouthZone.com/give. Together, against any challenge, we can foster Hopeful Youth, Strong Families, and Safe Communities.
