Texas Border Business
Texas Border Business
Since July 2025, nonprofit organizations across Texas have been hit by severe funding reductions and the loss of key federal contracts, leading to widespread layoffs and shutdowns. The largest cutback involves Southwest Key Programs, which runs shelters for unaccompanied migrant children. According to MySanAntonio, state filings under the WARN Act show the nonprofit expects to eliminate between 1,200 and 1,300 jobs across Texas, including more than 750 positions in Houston. The organization said the layoffs, set to begin in early October, follow the federal government’s decision to end contracts tied to its shelters.
The job losses extend far beyond a single organization. As reported by the Houston Chronicle, WARN notices project nearly 1,900 layoffs across Texas over the coming months. The Houston area is expected to be hardest hit, with more than 1,100 job losses, while Dallas and Hidalgo counties will also see hundreds of cuts. Other affected groups include Equus Workforce with over 200 layoffs, Turner Industries with about the same number, and Planned Parenthood Gulf Coast, which is closing two Houston-area clinics and cutting more than 100 jobs.
In San Antonio, the Henry Ford Academy: Alameda School for Art + Design is on track to close permanently on August 31, 2025. According to the San Antonio Express-News, school leaders pointed to declining enrollment and the resulting drop in Title I federal funding as the reason they could no longer keep the tuition-free charter school open.
In Houston, the Family to Family Network, which for 35 years assisted families raising children with intellectual and developmental disabilities, closed at the end of July 2025. As reported by the Houston Chronicle, the nonprofit faced a mix of financial challenges, including shrinking grant support and uncertainty around Medicaid waivers. It ultimately determined it could not remain financially viable.
Amid these closures, one nonprofit has opted to maintain a stabilizing role. Catholic Charities Fort Worth, which coordinates refugee services statewide, had previously announced it would step aside this fall. But the Houston Chronicle reports that after pushback from service providers worried about losing access to roughly $200 million in aid, the group has agreed to continue overseeing the program until September 2026.
