Seattle Culture
New Federal Rules Hit Eastside Youth Services
The Kirkland nonprofit is forced to scale back in response to shifting federal policy
By Sarah Stackhouse April 2, 2025

In a region already struggling to meet the needs of unhoused youth, one of the Eastside’s most prominent youth service providers is cutting key programs in response to a rash of federal funding restrictions.
Friends of Youth will no longer accept certain federal funding, citing recent executive orders and new restrictions tied to U.S. Department of Health and Human Services grants — including anti-DEI and anti-immigration policies — as the reason for the change.
As a result, four programs are shutting down: the Colin Ferguson staffed foster home, federal long-term foster care, the Street Outreach program, and four federally funded beds at Youth Haven, its emergency shelter for youth ages 7 to 17. Young people affected by the closures will be connected with other services.

“These programs have been essential lifelines for youth experiencing homelessness and those in foster care,” says Paul Lwali, president and CEO of Friends of Youth. “Despite our best efforts, the unpredictable nature of federal funding and the new federal anti-gender, anti-DEI requirements and anti-immigration policies have made it unsustainable to continue these services.”
He called the decision “incredibly challenging,” but said it was made with long-term sustainability in mind. “In making this choice, we carefully considered the well-being of our employees, the integrity of our mission, and, most importantly, the young people who depend on us for support.”
Other services will continue. The Willows Youth Services Center, the only drop-in and overnight shelter for 18 to 24-year-olds in East King County, remains in operation. Youth Haven will also stay open, though with fewer beds. Case management, behavioral health counseling, and transitional living programs will continue supporting youth in need.
All of this comes as King County faces one of the highest homelessness rates in the nation, with 16,868 people experiencing homelessness on any given night last year — a 26% increase since 2022. A recent report even proposed converting downtown office buildings into shared housing to help ease the crisis.
Friends of Youth works to ensure all young people have the opportunity to succeed. The organization has served the Eastside since 1951, in cities like Redmond, Bellevue, and Kirkland — where youth-specific services are limited. Its leaders hope the upcoming Celebration of Youth fundraising events in April and May will help keep remaining programs strong.
Nonprofits across the region are now grappling with how these new federal rules and funding restrictions upend the way they’ve operated for years — and force difficult choices about which services can survive.