Waco Cuts Funding for Local Non-Profits by 20%

City budget constraints force organizations to reduce services and staff

Mar. 30, 2026 at 7:07pm

Got story updates? Submit your updates here. ›

A high-end, photorealistic studio still-life photograph featuring a stack of financial documents, a pen, and a calculator arranged elegantly on a clean, grey seamless background, conceptually representing the abstract challenges of municipal budgeting and funding constraints.As Waco grapples with tightening budgets, the city's difficult decision to reduce funding for local non-profits by 20% will force organizations to make tough choices about services and staffing.Waco Today

The City of Waco has reduced funding for local non-profit organizations by 20% as it navigates tightening revenues and a $30 million reduction to the municipal budget over the past two years. The cuts are forcing non-profits like the Central Texas Hispanic Chamber of Commerce and Historic Waco to make significant adjustments to their services and staffing.

Why it matters

Non-profits in Waco provide critical community services, and the 20% funding cuts will impact their ability to serve residents. The reductions come as the city faces broader budget challenges, forcing difficult decisions about resource allocation across public services.

The details

The Central Texas Hispanic Chamber of Commerce lost $35,000 in city funding, forcing the organization to reduce intern hires, pause some programs, and share services with other non-profits. Historic Waco is also losing city funds, which, combined with a decrease in memberships and donations, has resulted in staff cuts. To help offset the cuts, the city created a $1 million project reserve fund that non-profits can apply for, though city officials warn further budget reductions are possible next year.

  • In 2025, the Central Texas Hispanic Chamber of Commerce received $175,000 from the city.
  • In 2026, the organization is receiving $140,000, a 20% reduction.

The players

Central Texas Hispanic Chamber of Commerce

A non-profit organization that supports Hispanic-owned businesses in the Waco area.

Historic Waco

A non-profit organization that preserves and promotes the history and culture of Waco, Texas.

Mito Diaz-Espinoza

President of the Central Texas Hispanic Chamber of Commerce.

Blu Kostelich

Waco Chief Financial Officer.

Got photos? Submit your photos here. ›

What they’re saying

“Yeah that's about $35,000 for us. So we start looking at what do we have to minimize, what does the programming look like, how do we still manage the high level of contact and support that we have for our businesses.”

— Mito Diaz-Espinoza, President, Central Texas Hispanic Chamber of Commerce

“All of us knew what was going on, so we've all shared services, what are we doing independently that we can do together to make sure that we are not duplicating services and save some of those costs.”

— Mito Diaz-Espinoza, President, Central Texas Hispanic Chamber of Commerce

“We are being squeezed with tightening revenues, we have to also tighten our expenses.”

— Blu Kostelich, Waco Chief Financial Officer

“As we go through this process understand that our budget is tight and we're going to be the best partners that we can be.”

— Blu Kostelich, Waco Chief Financial Officer

What’s next

The city is currently in the budget process for next year, and Kostelich said it is possible for funds to continue reducing for non-profits.

The takeaway

The funding cuts to Waco's non-profit organizations highlight the difficult budget decisions cities must make, balancing support for critical community services with broader fiscal constraints. As local governments navigate tightening revenues, non-profits may need to find innovative ways to share resources and adapt their programming to continue serving residents.