This story was originally published by Capital B Gary.
By Rayonna Burton-Jernigan
Capital B Gary
May 21, 2026
City Life Center of Northwest Indiana’s hallways are usually filled with children waiting for tutoring sessions, basketball games, hot meals, and rides home after school.
But in recent months, leaders at the Gary nonprofit have been grappling with shrinking state and federal funding and the growing financial pressures that come with it.
Earlier this month, the organization temporarily closed ahead of its usual end-of-school-year schedule because of financial strain. City Life Center plans to resume programming when its summer camp begins in June.
“We’re going to do our best,” executive director Joshua Austin said. “We might be in a tight situation, but we’re going to make it.”
For more than a decade, City Life Center has provided after-school care, mentorship, meals, and summer programming for children and families across Northwest Indiana, particularly in Gary.
But Austin said the organization’s financial strain has intensified over the past year as several state and federal funding streams tied to youth programming, workforce development, and childcare either shrank or disappeared.
The cuts are forcing City Life Center to reduce enrollment, charge families for services that were once completely free, and compete with thousands of other nonprofits for a shrinking pool of grant funding. Leaders at the organization say the financial pressures reflect a broader challenge facing nonprofits across Indiana as funding disruptions ripple through programs serving working families and children.
City Life Center operates on an annual budget of just under $1 million, Austin said, with more than half traditionally coming from state and federal funding sources.
Those dollars helped cover food, staffing, training, and youth programming costs. But Austin said cuts to several grant programs have forced the organization to begin charging families in order to keep the doors open.
The organization previously relied on grants tied to diversity, equity, and inclusion initiatives, youth workforce development, and 21st Century Community Learning Center programs. Some grants worth more than $300,000 have disappeared from the budget entirely, Austin said.
According to a recent study by the Urban Institute, Indiana nonprofits received nearly $3 billion in government funding in 2023, with nearly 74% of nonprofit filers having grants considered at risk. In Lake County, nonprofits received more than $213 million in government grants, but roughly 86% of nonprofit filers had grants considered at risk.
“A lot of those grants that we used to enjoy, which used to be federal grants, have just been cut or no longer exist,” Austin said.
At the same time, cuts to Indiana’s Child Care Development Fund have reduced provider reimbursements by 10% to 35%, placing additional pressure on working families and childcare providers, Austin said.
City Life currently serves about 60 students, roughly half of its full capacity of 120 children ranging from kindergarten through 12th grade.
“Our enrollment is down because of the cost,” Austin said.
The organization now charges families $100 per month per child for after-school programming.
“We lost 25 families as a result of that,” Austin said. “You’re asking a family to choose between food, healthcare, and childcare. They’re going to choose food and healthcare because that’s what they need every day.”
Austin said some funding changes may have been intended to address abuse within assistance programs, but he believes the cuts are also hurting families and organizations that depend on the support.
“The truth of the matter is: there are short-term and long-term effects to cuts like this that directly impact those who are the most needy,” he said. “Ultimately, we need everything fully funded.”
City Life Center has 29 full-time employees and several volunteer positions. The grant money it receives helps cover operational, payroll, and other costs that may arise.
“I have to keep these people employed,” Austin said.
That concern is shared throughout the organization.
Rhonda Miller, City Life Center’s director of development, has worked at the organization for eight years, making her the organization’s longest-serving employee. A mother of four, Miller said she understands the importance of structured after-school programs for families and children.
“I have always been an advocate for education and safe recreational outlets,” she said.
She said the organization once operated with the support of three major grants and significantly more financial stability. Now, staff members are searching for creative ways to sustain the center’s programs. City Life Center has started working with local businesses to sponsor students and community events in hopes of generating additional support and visibility.
“We have to be innovative now,” she said.
With low interactions with the kids because of her work, she still enjoys the chatter or laughter that drifts down the hallway while she’s in her office.
“The kids bring life to the building,” Miller said.
Jai-Lin Haliburton, the organization’s student activities coordinator, said programs like City Life Center provide students with an important outlet after long school days.
“Children in our community, they’re the future,” he said. “They need to have an outlet where they’re able to come after a very long day at school, where they can relax, decompress, have fun, and let their troubles blow away.”
Haliburton, who has worked at the organization for seven years, said he remains hopeful despite the financial uncertainty.
“I hope that we’re still able to live out our mission,” he said, emphasizing the organization’s essential role in the community. “I truly believe we will be able to, because one thing about working here is that we’ve always been able to stand up against whatever has come against our program.”
For Austin, the uncertainty surrounding City Life Center feels personal.
The Chicago native began his career in education after graduating from Tuskegee University and recognizing the need for more Black male teachers in classrooms.
After his first teaching assignment in 2005, Austin said he did not know where his career in education would eventually lead him. Searching for new opportunities, he eventually came to Gary, where he taught at Lighthouse College Preparatory Academy and later worked as a counselor at Roosevelt College and Career Academy.
“I’m very vested in Gary. We have a lot of deep roots here,” Austin said.
From teaching in the city to living in the Aetna neighborhood and having family connected to local schools, Austin said Gary has remained central to his life. So when the opportunity arose to lead City Life Center Northwest Indiana in January 2024, he said it felt like a natural next step.
“All of those roles prepared me to be in a position to impact lives, not just academia,” he said.
Austin said his background working with students and families helped prepare him to lead a program focused on long-term support for children.
“Coming here to the City Life Center, we are one of those programs that benefits kids in the long term,” he said.
City Life Center began in December 2013 after Bethel Church purchased the former Boys & Girls Club building on Fifth Avenue in Gary. Church leaders later established a separate nonprofit organization focused on serving the broader community.
Today, the 41,000-square-foot facility offers after-school, weekend and summer programs, educational support services, meals, tutoring, and mentorship opportunities. Older teens can also participate in apprenticeship programs that Austin said often provide students with their first jobs.
Most students enrolled in City Life Center’s programs attend schools within the Gary Community School Corporation. Austin said programs like City Life Center provide more than supervision after school.
“One of the biggest things that hurts me the most is when I hear that a child got hurt during a time when my program is open,” he said. “Programs like this are necessary for our kids to be shaped and molded.”
Despite the financial pressures confronting the organization, City Life Center plans to operate its summer camp from June 8 through July 24. Austin said he hopes the community rallies around programs that support children and working families.
“It can’t just be done by mom and dad,” he said. “It can’t just be done by the school because everyone has different limitations. But when we work together as a village, we can see our kids be well.”
Rayonna Burton-Jernigan is the Business and Economic Development reporter for Capital B Gary.More by Rayonna Burton-Jernigan
Capital B is a Black-led, nonprofit local and national news organizations reporting for Black communities across the country.
