Federal funding cuts are beginning to ripple through communities across the country — and while residents of Washtenaw County have seen these storms before, local leaders say the scale and timing of these cuts could pose challenges unlike any in recent years.
Cuts to Medicaid and SNAP (the Supplemental Nutrition Assistance Program) are top of mind, though other federal programs are also seeing reductions that will be felt locally.
The Washtenaw Health Initiative sat down with leaders from three of Washtenaw County’s core institutions: Packard Health, a safety‑net health clinic; Avalon Housing, a nonprofit housing developer and service provider; and Food Gatherers, the region’s food bank and food rescue program.
We talked about their perspectives and their plans for these changes. We are sharing their insights here so that others in the health and social services space can learn from each other. It’s by working together that we can guide the county through this challenging time.
Washtenaw has been here before
Packard Health has weathered a crisis like this before.
“Packard is 52 years old now,” executive director Ray Rion explained. “We stayed open to new patients throughout the Great Financial Crisis of 2008. Almost half of those new patients were uninsured at that point, and we never said no, never limited new patients. But providing that much uncompensated care almost proved to be a fatal strain.”
By 2010 and 2011, Packard Health was in dire financial straits. “We managed to get through with some help from our friends at the health systems,” Rion said. “Once the Affordable Care Act came in, it was a game changer. We went from a third of our patients uninsured to low single digits.”
But that trend is reversing.
“This is really a sea change,” Rion said. “We were already seeing Medicaid numbers dropping before the Trump administration. It’s the first time since the ACA that the number of covered people is dropping. At Packard, we’re seeing a drop in Medicaid patients of about ten percent per month because many don’t file the annual renewal paperwork.”
He added, “It’s disappointing to see us shift backward to intentionally cover fewer people. It feels like a step backwards ten to fifteen years — and a self‑inflicted wound.”
What Washtenaw orgs see coming
As these cuts unfold, the three leaders share a sense that the effects will compound over time — not only for their own organizations, but for the community’s most vulnerable residents.
Scott Ellis, director of mission advancement at Avalon Housing, said the housing space is bracing for a “massive storm.”
“The proposed Trump budget calls for 43% cuts, but it’s not clear what the final funding level approved by Congress will eventually be.” Ellis said. “That would deeply increase homelessness pretty quickly. We’re already under‑vouchered — people need and want subsidized rent — and now we’re looking at the possibility of phasing people out and no new vouchers coming in.”
Ellis explained that Washtenaw County was already behind in meeting housing development goals, and these looming cuts could set the community back even further. “We’re opening properties — we’ve got 50 new units next week, another project broke ground, another for February — but we’re already hundreds of units behind where we want to be, and these roadblocks will slow us down even more,” he said.
Food Gatherers is watching another front of the crisis develop. Markell Miller, director of community food programs, said her team saw impacts as early as March.
“The Department of Agriculture abruptly cut some of our food without notice, effective immediately,” Miller said. “That was fifteen percent of the pounds we distribute — about 1.2 million meals — and these were high‑demand products like proteins, dairy, fruits, and vegetables.”
Miller is also tracking the pending reductions to SNAP. “We’ve never seen cuts to SNAP at this scale before. For every one meal we provide, SNAP provides nine. So even a small reduction in SNAP is a huge reduction in services for people.”
Food Gatherers is bracing to have more people need their services at the same time as their resources and funding decreases.
Taken together, their predictions paint a stark picture: fewer people with health insurance, fewer people with food assistance, and fewer housing supports — all of which ripple through local systems that are already stretched thin.
Strategies to ride out the storm
Despite the uncertainty, these organizations are not standing still. They are reassessing priorities, tightening spending, and seeking new sources of support.
At Packard Health, Rion said their first obligation is clear.
“Our first obligation is to our current patients, to continue services. Secondly, we continue to provide access to people who may not otherwise have access,” he said. “We’re in a defensive crouch and hoping nothing bad happens — careful strategic planning, no growth projects right now, just hoping to maintain what we have.”
The clinic has built up some financial safeguards over the years. “We have some reserves, all in cash instruments so we’re not exposed to the market,” Rion said. “We control what we can control and be cautious.”
Avalon Housing is also making careful moves to reduce reliance on federal dollars while continuing development.
“We’re trying to boost non‑federal sources as quickly and sizably as possible,” Ellis said. “We don’t want to say no to future housing development because money has to be cannibalized for services.”
He explained that while Avalon is pushing forward on several housing projects, they are simultaneously lobbying at the state level for supportive housing dollars to sustain case management services.
Food Gatherers, meanwhile, is leaning on reserves and stepping up advocacy and fundraising.
“Our board approved a fiscal year budget with a $3 million deficit,” Miller said. “That’s what our reserves are for, but we can’t do that year over year. We’re purchasing more food to maintain distribution and we’re increasing our advocacy work at the state and federal level.”
Overall, the takeaway is clear: each organization is taking a hard look at what they can control, shoring up resources where possible, and collaborating with partners to avoid leaving people behind.
We’re in this together
For leaders of these organizations, the uncertainty is exhausting, and the human stakes are never far from mind.
“It’s a dynamic and fluid situation, and planning is difficult,” Ellis said. “On a society-wide level, when you take away healthcare and food and limit housing, a lot of people are going to suffer. Some will die needlessly. It stretches already stretched systems.”
Miller said confusion alone takes a toll.
“Mistakes can be made. Someone might be newly subject to a work requirement and is working, but they file paperwork incorrectly,” she said. “That personal tax on people is so burdensome and confusing. People are just doing their best to get by.”
Yet amid these challenges, all three leaders expressed hope in Washtenaw County’s nonprofit ecosystem and the people who support it.
“People have been pulling together,” Rion said. “We’ve worked with other local nonprofits to affect policy debates. On the ground, everyone in the healthcare and behavioral health service sectors knows things will get worse, and we’re trying to support one another. It’s easy to do a good job in good times — now the work has started.”
Miller added that there’s room for everyone to help.
“Everyone can have a role in supporting hunger relief,” she said. “Any gift always helps. There are always volunteer opportunities. And be an advocate — educate elected officials, reach out to your neighbors so they know where to find food.”
Ellis offered a similar perspective: “As you build an ecosystem of care, shelter is important. Preventing homelessness is important. And simultaneously, make sure you’re creating permanent housing or else there’s nowhere for people to go.”
Rion closed with a reminder of the community’s resilience: “To patients or potential patients — don’t get discouraged,” he said. “Reach out for help. There’s a great core group of well‑established, effective nonprofit service organizations in this county. We’ll be taking new patients if people need help. We are not alone.”