Like hundreds of organizations across the country that support children and adults victimized by domestic and sexual violence, CARE House of Pontiac, Michigan, relies on federal funding from a source many Americans have likely never heard of.

And on Oct. 1, at the start of the new federal funding year, those funds will suffer significant reductions. Some experts say that’s a result of shrinking deposits, due in part to a decline in federal prosecutions.

Blythe Tyler, president and CEO of CARE House of Oakland County, says her organization is about to lose $300,000, about 10% of its budget.

“It’s so critical because it really equates to 300 children that may not receive services because those funds aren’t available,” she told MS NOW.

The Victims of Crime Act (VOCA), signed into law in 1984 by President Ronald Reagan, was created on the premise that criminals should pay restitution and that those funds should be granted to organizations assisting victims of crime.

That pot of money — the Crime Victims Fund (CVF) — is financed largely by federal criminal penalties and fines concerning cases of corporate fraud, white-collar crimes and other federal offenses. No federal taxpayer dollars go into it, and organizations awarded funds go through a rigorous application process under the program that is overseen and administered by the Department of Justice’s Office of Victims of Crime.

According to the VOCA website, as of July 2026 the fund balance is more than $3.7 billion, which it says includes “deposits (also known as receipts) from federal criminal fines, forfeited bail bonds, penalties, and special assessments collected by U.S. Attorneys’ Offices, federal courts, and the Federal Bureau of Prisons.”

The Brennan Center for Justice recently noted that “a trend of the DOJ prosecuting fewer white-collar crimes such as financial fraud and corruption” could be contributing to the depletion of the CVF. An increase in deferred prosecutions and non-prosecution agreements for white collar criminals the DOJ does pursue has also played a key role in the fund’s decline.

And the National Children’s Alliance says the CVF has been reduced by more than 70% since 2018, forcing many of its hundreds of members — including children’s advocacy centers — to either reduce services or close entirely, noting, “federal victim services funding remains dependent on criminal penalties.” Leaders of centers in five states told Mother Jones in December 2024 that the funding cuts were forcing them to cut staff or leave vacant positions empty, leading to burnout for staff and longer wait times for kids in need.

Declining deposits into the fund — because of either fewer prosecutions or federal budget cuts — has been a consistent issue stretching back into previous administrations. In Michigan, organizations like CARE House, which provides services to children who may have been sexually abused or neglected, have been warning for years that depleted funds will directly affect how they serve their communities.

In a statement to MS NOW, a spokesperson for the Justice Department did not address questions about the depletion of the Crime Victims Fund but denied that prosecutions were declining under the Trump administration, saying, “The claim that federal prosecutions are down is simply wrong. This Administration has prosecuted approximately 50,000 more defendants than the same period under the previous Administration.”

Congress has stepped in previously to bolster and protect funding to the CVF.

President Joe Biden signed into law the VOCA Fix to Sustain the Crime Victims Fund Act of 2021, which found a new revenue stream for the fund: penalties collected from federal deferred prosecution and nonprosecution agreements from the U.S. Treasury general fund.

And last year, Rep. Debbie Dingell, D-Mich., re-introduced the Crime Victims Fund Stabilization Act, designed to temporarily divert funds collected through the False Claims Act, which penalizes defrauding of the government, into the CVF through 2029. That bill had bipartisan support in the House.

The Michigan lawmaker was hopeful that the fund could be bolstered, saying at the time, “Congress must ensure that the CVF receives robust, stable funding that equips victim services with adequate staffing and capacity. I’m proud to see this significant legislation pass the House and move one step closer to becoming law and shoring up the CVF for years to come.”

But Dingell’s legislation has been stuck since January 2026, when it reached the Senate Judiciary Committee.

At CARE House, the staff has been reaching out to the local community to fundraise, but the nonprofit says receiving donations is a challenge during an economic crunch.

“To have this funding cut so drastically, so fast, it makes me worry that there are just more kids out there that aren’t going to get the services they need,” said Tyler, CARE House’s president. “They aren’t going to be able to move through this abuse and aren’t going to get justice.”

The CARE House staff is specifically trained to work with children who have to speak with law enforcement, and the facilities include interview rooms so young victims won’t have to endure the trauma of going to a police station. Last year almost 800 children, age 2 to 18, sat in these rooms for forensic interviews while law enforcement and other professionals watched from behind the one-way glass.

“We want to provide an opportunity for them to tell their story in a safe place that reduces trauma,” Tyler explained. “We want to make sure that kiddos and their families have the support and ongoing support that they need.”

“As a victim of abuse myself, who didn’t have an advocacy center because they didn’t exist, I think that every child deserves to live a safe and stable life free from abuse,” she said. “Every single one.”

Dot Whalen and Julianne McShane contributed to this reporting.

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