KILLEEN, Texas (KXXV) — Nonprofits in Killeen, including Habitat for Humanity, face potential closure due to proposed federal grant cuts tied to a tax relief plan, prompting leaders to seek urgent local support.
- Habitat for Humanity’s CEO warns the organization could shut down within 6–7 months without continued federal funding.
- The cuts stem from a proposed tax relief plan linked to President Trump’s "Big Beautiful Bill."
- Local leaders, including the city’s community development director, are calling for new funding strategies and increased community involvement.
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BROADCAST TRANSCRIPT:
As proposed federal budget cuts loom, grassroots organizations in Killeen, including Habitat for Humanity, are bracing for major financial fallout that could force some to shut their doors within months.
“Without that funding, how do we survive?” said Kristin Smith, CEO of Killeen’s Habitat for Humanity.
The concern stems from proposed reductions to federal grants tied to President Donald Trump’s “Big Beautiful Bill,” a sweeping tax relief plan that could significantly reduce financial support for community-based nonprofits.
“Every dollar matters to every family right now and if there's nothing trickling down from the feds, then how are we going to be able to continue impacting the community?” said Smith.
For organizations like Habitat for Humanity, the issue goes beyond budget tightening—it’s a matter of staying open.
“Without the support of the federal grants, we're probably looking at maybe six to seven months of being open,” said Smith.
The emotional toll on leadership has also been significant.
“It's hard being the leader, having to tell everyone to hang on,” she added.
The proposed cuts come just months after previous reductions in February that already strained local operations.
“So of course with the proposed tax cuts and of course you guys already having been affected back in February — how do you think this will impact you guys?” asked 25 News' Marc.
“What are we going to do to continue serving our community? How do we continue to go on?” Smith responded.
With no immediate sign of restored federal support, many organizations are turning to the local community for help.
“We need you, and we can only do what we do with the local community,” said Smith.
Killeen’s Community Development Director, Tiffanie McNair, also expressed concern in a written statement. She said the city will need to explore alternative strategies to continue providing services in the face of possible cuts.
The future remains uncertain, but leaders across Killeen’s nonprofit sector are urging residents to step up and support efforts that have long relied on federal backing to meet critical community needs.
