A Shopmobility service in Newport will have to make a bid to the council to secure its future in a tendering process against three other voluntary organisations.
Newport City Council has guaranteed funding to Shopmobility and four other voluntary organisations until the end of the next financial year in March 2020.
After that the council will run a tendering process so that the organisations will have to bid for funding to secure their future for the financial year 2021/22.
The council reportedly distributed over £280,000 to voluntary organisations last year but the new budget will not allow all of them to be funded. It will instead help the groups to find other avenues of funding.
Shopmobility is an equipment hire service that loans out scooters, powerchairs and manual chairs to people with mobility issues.
Many such services are facing closure around the UK because councils are having to readjust their budgets.
Newport council needs to save £140,000 by 2021/22 and voluntary organisations are thought to be first in line to have funding cut.