LGBTQ+ groups face alarming funding crisis as Republican anti-trans attacks mount, new report finds
Philanthropic support for LGBTQ+ causes is collapsing just as queer and transcommunities face an escalating national crisis. New data from Funders for LGBTQ Issues shows foundation funding for LGBTQ+ organizations in the U.S. dropped sharply to $209.4 million in 2023. That’s a staggering decline of nearly $49 million, or 19 percent, from 2022. When adjusted for inflation, that cut deepens to 22 percent.
Even as the funding picture grows increasingly dire, many philanthropic institutions are opting to remain anonymous. The report omits the names of top funders and grantees for the first time in decades, reflecting a growing trend among donors who fear political retaliation and the increased hostility toward progressive causes under the current administration.
It’s a devastating trend arriving at precisely the moment when a second Trump presidency has declared open political war on transgender people, fueling state and federal policies designed to erase LGBTQ+ existence from public life. The Funders for LGBTQ Issues report makes clear the danger: for every $100 awarded by U.S. foundations in 2023, only 20 cents specifically supported LGBTQ communities, a decrease from 25 cents the previous year.
After the most inclusive U.S. president, President Joe Biden, stepped down from reelection and LGBTQ+ ally Vice President Kamala Harris lost the 2024 contest, President Donald Trump’s return to power has been defined by chaos and an obsessive focus on erasing transgender people from law and society. In the first half of 2025 alone, legislatures in 49 states have introduced 947 anti-trans bills, with 118 already enacted. That tsunami of legislation builds on the record-breaking surge of 701 anti-trans bills introduced in 2024, including an unprecedented 88 bills at the federal level, according to the Trans Legislation Tracker.
These bills range from the cruel to the surreal. Missouri lawmakers proposed felony charges and mandatory sex offender registration for teachers who support a child’s social transition. West Virginia’s legislature declared transgender identity a mental disorder, reminiscent of decades when homosexuality itself was pathologized. Across the country, new laws mandate forced outing of trans students, criminalize gender-affirming medical care, and redefine gender as an immutable biological fact.
The Trump administration has doubled down with executive orders that read like ideological manifestos. One bans trans women from women’s sports. Another order requires the federal government to remove references to gender identity from regulations. Other orders recast gender-affirming medical care as “mutilation” and threaten providers with criminal penalties. These policies don’t merely shift bureaucratic language; they stoke a cultural war that emboldens states to escalate legislative attacks.
Yet, precisely as the scale of the crisis explodes, the lifelines that sustain LGBTQ+ advocacy are drying up. As The Advocate previously reported, the Human Rights Campaign, GLSEN, and The Trevor Project all announced layoffsin the past year, citing shrinking donations and economic uncertainty.
The financial retreat cuts deepest in the communities most at risk. Funding for transgender, gender-nonconforming, and nonbinary communities fell from $48.2 million in 2022 to just $36.4 million in 2023, a 24 percent decrease. Similarly, grants for Black LGBTQ+ communities and causes fell by $14.5 million, a steep 41 percent drop from the all-time high in 2022 that followed the racial justice protests after George Floyd’s murder. Funding for LGBTQ+ youth plunged by 42 percent in 2023 to just $38.4 million, despite rising threats to trans children’s safety and health.
Historically, tragedies like the Pulse nightclub massacre and Floyd’s murder triggered spikes in philanthropic giving. But as Funders for LGBTQ Issues President Saida Agostini-Bostic writes in the new report, no similar surge has materialized to counter today’s unprecedented wave of anti-trans legislation. Private and community foundation funding, the bedrock of LGBTQ+ philanthropy, suffered some of the sharpest cuts, with private foundations decreasing giving by 27 percent and community foundations dropping 39 percent compared to 2022.
Despite grim figures, there are flickers of hope. Lambda Legal recently concluded a $285 million fundraising campaign, surpassing its goal by $100 million, with 95 percent of donations coming from individual donors rather than major foundations. Still, Lambda’s windfall cannot offset a sector-wide crisis, as the vast majority of LGBTQ+ advocacy and services depend on institutional grants rather than individual donors alone.
The crisis has also exposed the fragility of the funding ecosystem. According to the report, the top 10 funders accounted for 46 percent of all LGBTQ+ grants in 2023, but awarded 26 percent less money than they did in 2022.
The top 20 funders collectively slashed their giving by nearly a quarter, with no corresponding increase from smaller foundations to fill the gap. The report warns that this top-heavy structure makes the entire funding landscape volatile—one or two large funders pulling back can destabilize LGBTQ+ organizations nationwide.
As anti-trans bills multiply and federal hostility intensifies, LGBTQ+ communities stand at a crossroads. The stakes have never been higher politically and culturally. The data offers a stark warning, Agostini-Bostic said, writing, “If not now, when? If not us, who?”