The American economy is on the brink of upheaval, and working Americans are once again caught in the crossfire of a system that prioritizes corporate profits over people. White-Collar Workers of America has long warned of the devastating impact of tech sector layoffs, compounded by the replacement of U.S. workers with cheaper H-1B visa holders. Now, the Department of Government Efficiency (DOGE) has terminated $32 billion in federal grants, threatening the 12.8 million jobs in the nonprofit sector, while tech layoffs continue to surge, raising fears of inflation. Let’s examine this crisis, the shared pain of nonprofit and tech workers, and why working Americans—who’ve been hopping jobs, displaced, and told to “learn to code”—aren’t shedding tears for Washington’s elite.
The Nonprofit Sector at Risk: 12.8 Million Jobs on the Line
The nonprofit sector employs 12.8 million workers—9.9% of private-sector employment—across over 300,000 establishments, according to the Bureau of Labor Statistics (2022). These jobs span charities, hospitals, universities, and NGOs, many of which rely heavily on federal funding. For example, Global Refuge, an NGO, received $180 million of its $207 million budget from federal grants, per recent data. But DOGE, led by Elon Musk and Vivek Ramaswamy, has slashed $32 billion in federal grants and $400 million in leases, directly threatening the nonprofit sector’s stability.
The potential job losses are staggering. If 100% of the nonprofit workforce is tied to federal grants, over 12 million jobs could be at risk. Of cause such cuts can destabilize local economies, particularly in regions with high nonprofit employment, such as Washington, D.C. (25.2% of private employment), Vermont (20%), and Massachusetts (18%), per the BLS. Laid-off workers spend less, impacting local businesses like coffee shops and day cares, as noted by Yale economist Ernie Tedeschi. This “multiplier effect” can reduce consumer spending, a key driver of economic growth.
American Workers’ Struggle: A Decades-Long Betrayal
White-Collar Workers of America has long decried the betrayal of American workers, who are systematically replaced by cheaper H-1B labor. In the tech sector, U.S. workers are fired, forced to train their H-1B replacements, and then discarded. The Economic Policy Institute has documented how H-1B workers are paid 17-34% below the median wage, undercutting Americans and driving wage suppression. Meanwhile, small business closures and bankruptcies are soaring—35,411 jobs were lost to bankruptcy in February, per Fox Business—hitting workers even harder. Companies like 23andMe, which filed for Chapter 11 in 2025, and Party City, with mass layoffs in 2024, reflect an economy that’s left American workers scrambling to survive.
Working Americans have been forced to adapt or perish. We’ve hopped from job to job, faced displacement by foreign labor, and been told to “learn to code” to keep up with an economy that prioritizes profits over people. The tech sector, in particular, has been a battleground, with companies exploiting H-1B visas to hire foreign workers at lower wages, leaving American graduates struggling to find jobs despite their qualifications.
Washington’s Elite Get a Taste of Reality—And We’re Not Sorry
Now, Washington’s federal workers and the nonprofit sector they often fund are facing the music. For years, these bureaucrats and their grant-funded allies lived in a bubble of privilege, enjoying well-paying jobs with benefits and pensions most Americans can only dream of. While working Americans were displaced by H-1B workers, outsourced, or forced to reinvent themselves, Washington’s elite sat pretty, raking in taxpayer dollars for jobs that were supposed to last forever. Over 61,795 federal jobs have been lost in Washington, D.C., this year, compared to just 60 in 2024, per Reuters. Economists at Moody’s predict a “mild recession” in the capital, with close to 100,000 federal positions expected to be cut or relocated in the next two years, per CNBC.
We’re not shedding tears for these workers. They’ve spent decades living off the backs of hardworking Americans, comfortably insulated while we struggled. Now, as DOGE slashes their ranks and their grant-funded NGOs, they’re crying betrayal. But where was their outrage when American tech workers were forced to train their H-1B replacements? Where was their solidarity when small-town factories closed, and workers were told to “learn to code”? The economic fallout in D.C. is already hitting local businesses—coffee shops and day cares are suffering as laid-off workers cut spending, per CNBC—but working Americans have been dealing with this reality for years. Welcome to our world, Washington.
Nonprofit and Tech Layoffs: Shared Pain, Different Worlds
Both nonprofit and tech workers are now feeling the sting of job loss and the threat of outsourcing, but their experiences reveal the stark contrast between Washington’s grant-funded elite and the rest of America. Nonprofit workers, particularly in NGOs reliant on federal grants, face potential layoffs as DOGE’s $32 billion in grant terminations ripple through the sector. These cuts expose the sector’s over-reliance on taxpayer funds. Tech workers, meanwhile, face the same threat of replacement, with companies using H-1B labor to undercut U.S. wages, a practice the Economic Policy Institute has long documented as outsourcing firms like Tata and Infosys exploit visa programs. In both sectors, remaining employees are fearful, pulling back on spending and innovation, as noted by The Washington Post for tech workers and CNBC for federal employees tied to nonprofit funding.
The context of these layoffs highlights the privilege nonprofit workers tied to federal grants once enjoyed. DOGE’s cuts are ideologically driven, targeting “non-mission-critical” spending, as stated by White House spokesperson Anna Kelly, with over 26,000 federal jobs cut since January, per Reuters. The nonprofit sector, heavily dependent on these funds, is losing its financial lifeline, as seen in the potential impact on organizations like Global Refuge. Tech layoffs, however, are part of a longer, market-driven trend, with companies like Meta and Google slashing jobs to boost efficiency—Meta cut 5% of its workforce in November 2024, per The Washington Post. Tech workers also face unique pressures from AI, with platforms like ChatGPT decimating jobs at companies like Chegg, which cut 21% of its staff in 2024. Nonprofit workers, by contrast, never had to “learn to code” to keep up—they just had to secure the next grant.
A Reckoning for the Elite, A Call to Action for the Rest of Us
The convergence of nonprofit and tech layoffs is a brutal reminder of the economy’s betrayal of American workers. While Washington’s grant-funded elite finally face the insecurity we’ve endured for decades, the broader crisis continues unabated. Small business closures and bankruptcies are soaring, and the tech sector’s reliance on H-1B workers shows no signs of slowing. White-Collar Workers of America has been right all along: foreign worker programs like H-1B are a cancer on our job market, replacing Americans with cheaper labor and driving wage suppression. Now, as nonprofit workers join the ranks of the displaced, the nation has a chance to wake up. We don’t feel sorry for Washington’s bureaucrats or their grant-funded allies—they had their run. But we do feel urgency for the millions of working Americans who’ve been fighting this battle for years.
It’s time to end H-1B and all foreign worker programs that harm our citizens. No more outsourcing, no more replacements, no more excuses. The economy may be unraveling, but we can rebuild it for Americans—not for the elite, not for foreign labor, but for us.
Join the Fight: Share this article on X, TikTok, and Instagram with #EndH1B and #ProtectAmericanJobs. Call your representatives to demand an end to H-1B and all foreign worker visas. The time to act is now—because these are our jobs, and our future.
White-Collar Workers of America 