One year later WDIY bouncing back from federal funding loss

It was just over one year ago that community radio station WDIY in Bethlehem lost its federal funding. 

It was a loss of $110,000, or 15% from the station’s annual revenue and came at a time when the nonprofit was already operating at a deficit. 

But now, after a bit of reorganizing and strong support from the community, Executive Director Margaret McConnell said the station is starting to see a financial turnaround. 

“We had to dip into reserves to balance the budget in 2024,” McConnell said. “And now I was looking at a bigger hole.” 

She said it was the biggest challenge in the station’s 30-year history. Without that federal funding, McConnell said the station would have to use more than half its reserves to balance the 2025 budget, which would have put the station in serious financial jeopardy. 

“Thankfully, we did not have to touch it,” McConnell said. 

And better yet, WDIY was able to pull itself out of its financial straits, not by scaling back its mission. Instead, the station focused on strengthening local partnerships, expanding community support, and building a sustainable future. 

McConnell said the station was saved by thousands of listeners, donors, volunteers, sponsors, foundations, and community partners who rallied to the cause. 

“One year ago, our community answered the call,” said McConnell, “People didn’t just donate—they invested in the future of independent local journalism, music, arts, and community storytelling. Their support allowed us to balance our budget, continue serving our listeners, and begin planning for what’s next.” 

McConnell said the station was already planning its fundraising efforts, with events like Lehigh Valley Hollywood Squares that would help bridge the funding gap. But she said the response from the community when word got out about the funding loss was incredible. 

“We just saw checks coming in. It was the community responding to the crisis,” she said. 

While celebrating these accomplishments, station leadership says the next challenge is ensuring WDIY’s technology keeps pace with the future. 

McConnell said much of the equipment that powers WDIY’s broadcast system has been in service for decades. Earlier this year, failures in aging infrastructure caused repeated interruptions to the station’s signal, underscoring the need for modernization. 

The station estimates it must invest more than $116,000 in the near future to enable the station to transition from aging analog equipment to modern digital, IP-based broadcasting technology.  

McConnell explained that replacement parts are no longer made for the outdated analog equipment, making repairs complicated, time consuming and expensive. 

She said the station also needs an immediate investment of about $7,200 to repair critical equipment that is affecting on-air performance. 

“Community radio is only as strong as the infrastructure behind it,” McConnell said. “This isn’t about buying new gadgets. It’s about ensuring that when listeners turn on WDIY—whether for breaking news, emergency information, local music, or community conversations—we’re there.” 

McConnell said she has been busy getting the word out about the station’s financial needs with the hope that supporters will continue to come through for them but is looking to formalize efforts. 

“We need a development strategy,” she said. So she hopes supporters will keep an eye out for fundraising efforts in the future. 

The station is actively pursuing grants, major gifts, corporate partnerships, and community contributions to fund its technology modernization while continuing daily operations. 

“The future of local public media won’t be decided in Washington,” said Scott Dams, President of the Board of Directors. “It will be decided right here by a community that believes trusted local journalism, diverse voices, and independent public media are worth investing in.”