CABE said it was "bitterly disappointed" by the withdrawal of its annual £4.6m from the Department for Culture, Media & Sport (DCMS). It also lost its £6.7m from the communities department, which chopped all funding.
A CABE spokeswoman said the decision marked a swing of emphasis to culture and heritage away from the built environment. Chair Paul Finch added: "I believe the reasons for our work remain and will become ever more relevant."
Paul Bramhill, chief executive at charity GreenSpace, said: "We are dismayed DCMS has withdrawn funding to CABE when the sector needs all the support it can get."
Landscape architect Tony Edwards, who sat on CABE's design panel, said CABE championed high-quality design advice impartially "without distortions created by local politics and vested interests".
He added: "High-quality design is the most sustainable form of investment in the built environment. We can look to the future and be very afraid."
Sophia de Sousa, chief executive at Glass-House Community Led Design, said: "This sends a worrying message to those supporting good place-making as essential for sustainable communities."
Tree consultant Jeremy Barrell added: "It's a crying shame. CABE is architectural in focus but has done a really good job in raising the profile of trees and landscape. CABE has performed well, coming up with great, great work."
Landscape Institute chief executive Alastair McCapra said: "CABE is reviewing its options and there's a possibility it will continue in slimmed-down form. Our concern is it may focus narrowly on buildings."