Koreatown Youth and Community Center (KYCC) recently received an unexpected notice from the federal government, informing them that their U.S. Department of Agriculture-funded tree planting project, scheduled to run through September 2027, had been canceled before it even launched. A separate storytelling project aimed at highlighting the lives of small Korean American business owners was also terminated. Additionally, a substance abuse prevention program for communities of color has already lost its funding.
A KYCC representative called the decision “highly unusual,” especially since the affected projects had already been contracted or initiated.
Medical Services for Undocumented Koreans Also at Risk
Mission City Clinic (MCCN), a nonprofit healthcare provider operating a clinic on Wilshire Boulevard in LA’s Koreatown, has launched fundraising efforts in anticipation of further Trump budget cuts targeting Korean American nonprofits.
Since the California state government expanded Medi-Cal access for undocumented immigrants last year, the clinic has served hundreds of undocumented Korean Americans.
An MCCN official said federal funding for Medi-Cal coverage for undocumented residents is expected to end in January 2026, and the clinic is preparing alternative funding plans.
Trump Administration’s Budget Strategy Targets Diversity and Health Programs
The Trump administration, aiming to reduce the national debt, has launched sweeping cuts to federal funding that impact a wide range of nonprofit services. These cuts are being driven by a task force known as the Department of Government Efficiency (DOGE), which is led by Elon Musk.
Key programs impacted by the Trump budget cuts include funding for diversity, equity, and inclusion (DEI), education, addiction recovery, healthcare, and immigration services.
The administration has not only signaled future cuts but has already informed some nonprofit organizations—such as those serving Korean American communities—of immediate funding termination.
Local Nonprofits Face Mounting Financial Pressure
Nonprofits in Southern California report increasing financial strain as a result of these decisions.
KYCC, one of the leading Korean American nonprofits in LA, confirmed it had to halt four programs due to loss of federal support. The canceled funding amounts to hundreds of thousands of dollars.
Song Jung-Ho, Executive Director of KYCC, stated, “It’s rare for the government to cancel funding after a formal contract has been signed. We’ve already hired staff, and their jobs are now at risk. But the real tragedy is that vulnerable residents in Koreatown will no longer have access to critical services.”
Mark Lee, Director of MCCN’s Koreatown clinic, added, “If the federal government ends Medi-Cal support for undocumented residents, the State of California can’t cover the shortfall. We hope the City of LA and other local governments will step up to provide support.”
Future of Korean American Nonprofits at Risk in 2026 Budget
On April 21, the LA Daily News reported that if the Republican-controlled Congress adopts the Trump administration’s proposed 2026 fiscal year budget, nonprofits across Southern California—including many serving Korean American communities—will face even greater financial stress.
The report warned that community welfare services could be significantly reduced as a result of the Trump budget cuts to Korean American nonprofits.
BY HYOUNGJAE KIM [kim.ian@koreadaily.com]
