Houston, August 19, 2025
News Summary
Nonprofit and service-sector jobs in Texas are set to see significant cuts as funding dwindles and federal contracts end. Southwest Key Programs will eliminate 1,200 to 1,300 jobs, predominantly in Houston. The layoffs, scheduled to begin in October, will also affect other organizations like Equus Workforce and Planned Parenthood Gulf Coast. The closures will disrupt essential services, particularly in the Houston area, prompting concerns for local communities reliant on these programs.
Houston
Nonprofit and service-sector jobs across Texas are facing a sharp reduction after a wave of funding cuts and federal contract terminations. The largest single employer impact comes from Southwest Key Programs, which runs shelters for unaccompanied migrant children and expects to eliminate between 1,200 and 1,300 jobs across Texas, including more than 750 positions in Houston. Statewide notices filed under the WARN Act project nearly 1,900 job losses, with the highest concentration in the Houston area.
Key details: who is affected and when
The planned layoffs at Southwest Key are scheduled to begin in early October 2025 after the federal government terminated contracts tied to its shelters. Additional announced workforce reductions include over 200 layoffs each at Equus Workforce and Turner Industries, and more than 100 jobs being cut as Planned Parenthood Gulf Coast closes two Houston-area clinics. A specialty school in San Antonio, The Henry Ford Academy: Alameda School for Art + Design, is set to close permanently on August 31, 2025, citing declining enrollment and reduced federal funding.
Regional impact
- Houston: Expected to lose over 1,100 jobs total, driven largely by Southwest Key and clinic closures.
- Dallas and Hidalgo counties: Anticipated to see hundreds of additional job losses tied to the same wave of contract and funding reductions.
- San Antonio: Loss of a specialized charter school at the end of August 2025.
Other closures and program changes
Several smaller organizations and programs have already announced closures or reductions. The Family to Family Network in Houston, which supported families raising children with disabilities for 35 years, closed at the end of July 2025 because of financial difficulties. Catholic Charities Fort Worth, which had planned to step away from coordinating refugee services this fall, will continue that coordination until September 2026.
Legal and regulatory context
Organizations planning layoffs are required by the WARN Act to notify the Texas Workforce Commission. The WARN notices filed publicly outline the anticipated layoffs and provide local workforce agencies time to prepare. Southwest Key has previously faced criticism and legal challenges related to conditions in some of its facilities and allegations of employee misconduct, which contributed to scrutiny around its operations while federal contracts were reviewed and ultimately terminated.
Economic context and sector trends
The layoffs are part of a broader trend of rising job losses in service sectors that rely heavily on federal funding and contracts. Organizations that provide direct care, shelter, health services, and educational programs are particularly vulnerable when federal funding is reduced or contracts end. The combined effect of contract cancellations and declining grant revenues has left multiple nonprofits and service providers unable to sustain current staffing levels.
Immediate effects and next steps
Workers receiving WARN notices will be eligible for state unemployment services, and workforce agencies in affected counties are expected to expand job placement and retraining outreach. Some organizations may pursue alternate funding or operational changes to limit closures; others have already reported permanent shutdowns. Local service networks may see gaps in shelter, health care, and specialized education services while agencies and funders respond.
What this means for communities
Communities that rely on nonprofit and contract-funded services can expect disruption in several areas, including shelter services for unaccompanied children, reproductive and primary health clinics, workforce support programs, and specialized educational services. Coordination among local governments, nonprofits, and federal agencies will be critical to filling service gaps and supporting displaced workers.
Key features table
| Organization / Program | Estimated Job Losses | Location(s) | Status |
|---|---|---|---|
| Southwest Key Programs | 1,200–1,300 | Statewide (including Houston) | Federal contracts terminated; layoffs begin early Oct 2025 |
| Equus Workforce | ~200 | Texas | Planned layoffs |
| Turner Industries | ~200 | Texas | Planned layoffs |
| Planned Parenthood Gulf Coast | >100 | Houston area | Clinic closures and staff cuts |
| The Henry Ford Academy: Alameda School | — (school closure) | San Antonio | Permanently closing Aug 31, 2025 |
| Family to Family Network (Houston) | — (closed) | Houston | Closed end of July 2025 |
Timeline of events
| Date | Event | Status / Source |
|---|---|---|
| July 2025 | Warnings filed showing major funding reductions and contract terminations | WARN notices; projections of nearly 1,900 layoffs |
| End of July 2025 | Family to Family Network in Houston closes | Organization closure due to financial difficulties |
| August 31, 2025 | The Henry Ford Academy: Alameda School closes permanently | Closure cited declining enrollment and federal funding drop |
| Early October 2025 | Southwest Key expected to begin layoffs | Layoffs follow federal contract terminations |
| September 2026 | Catholic Charities Fort Worth continues coordinating refugee services until this date | Extension of coordination role announced |
Layoff statistics — visual summary
Relative scale of projected layoffs in select organizations (visual bars approximate proportionally):
Frequently Asked Questions
What is happening to nonprofit jobs in Texas?
Nonprofit and contract-funded service jobs in Texas are being reduced after major funding cuts and federal contract terminations. The largest announced reductions are linked to Southwest Key Programs, and WARN notices project nearly 1,900 layoffs statewide.
How many jobs will Southwest Key cut and when will layoffs start?
Southwest Key Programs expects to eliminate between 1,200 and 1,300 jobs across Texas, including over 750 in Houston. Layoffs are scheduled to begin in early October 2025 following termination of related federal contracts.
Which other organizations are affected?
Equus Workforce and Turner Industries each plan to lay off roughly 200 employees. Planned Parenthood Gulf Coast is closing two Houston-area clinics and cutting more than 100 jobs. The Henry Ford Academy in San Antonio will close on August 31, 2025, and the Family to Family Network in Houston closed at the end of July 2025.
What does the WARN Act require?
The WARN Act requires employers planning mass layoffs or plant closings to notify the Texas Workforce Commission and affected workers in advance, giving state agencies time to respond and provide services to displaced workers.
What services and communities are most at risk?
Services at risk include shelter for unaccompanied children, reproductive and primary health services, workforce support programs, and specialized education programs. Communities that depend on contract-funded providers may experience service gaps.
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Additional Resources
- Texas Border Business
- Wikipedia: Houston
- Houston Chronicle
- Google Search: Southwest Key Layoffs
- MSN
- Google Scholar: Texas Nonprofit Funding Cuts
- KSAT
- Encyclopedia Britannica: Texas Nonprofits
- Dallas News
- Google News: Texas Layoffs 2025
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