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Phoenix Nonprofit Hushabye Nursery Faces Financial Crisis Amid $500K Federal Funding Cut

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Published on April 08, 2025
Phoenix Nonprofit Hushabye Nursery Faces Financial Crisis Amid $500K Federal Funding CutSource: Google Street View

Hushabye Nursery, a Phoenix-based nonprofit known for providing critical aid to newborns suffering from substance withdrawal, has recently hit a roadblock with a significant cut in federal funding that jeopardizes its operations and the crucial support it offers; this cut forms part of the sweeping $12 billion in reductions by the Department of Health and Human Services (HHS), as reported by FOX 10 Phoenix and further detailed by AZ Family. "We serve the babies in the perfect environment for them to go through that withdrawal process. Specifically for babies that are withdrawing. But also the entire family system," Tara Sundem, a nurse practitioner and founder of Hushabye Nursery, told FOX 10 Phoenix, underscoring the profound impact the nursery has had on affected families.

After receiving an unexpected notification by email and phone call, Sundem learned that the nursery would be losing out on approximately $500,000, which represents a noticeable chunk of their $6.4 million budget, according to AZ Family. This leaves Sundem and her team scrambling to find alternative sources of funding to maintain their specialized care for those newborns and families ensnared by the opioid crisis. The organization's urgent appeal for public support, as it works fervently to piece together a shortfall in funds, hopes to attract attention and generosity before a daunting April 15 deadline to raise $100,000. Meanwhile, they've managed to secure a modest but critical $25,000 thus far, according to statements given to FOX 10 Phoenix.

Lisa Greco, an employee and former client of Hushabye, personifies the full-circle transformation made possible by this organization, going from a pregnant, homeless individual battling addiction to a gainfully employed single mother able to offer assistance to others facing similar challenges. Greco shared with AZ Family, "I would not be here without Hushabye. I would not be here," emphasizing the crucial role Hushabye has played in her life and recovery. The ongoing opioid epidemic has kept Hushabye's services in high demand, and the current funding situation has pushed the organization to devise ways to stretch its remaining resources to support the nearly 1,000 babies they've served since their inception in November 2020.

Amidst the struggle for financial viability Arizona Attorney General Kris Mayes has joined forces with a coalition of 23 state attorneys general in a lawsuit, contending that the federal government is out of line for reclaiming money it had already earmarked – even if the initial allocation was tied to the COVID-19 relief efforts, there's no recognition of the current utilization of these grants for ongoing public health and substance abuse programs. Sundem and her team, meanwhile, continue their push to encourage state tax credit contributions to bridge the imminent budget gap and sustain their programs at least through the immediate future, all while hoping that an alternative grant might emerge to fill the void left by the federal cuts.