Government Affairs Digests Emily Llamazales Government Affairs Digests Emily Llamazales

Gov. Affairs | Issue 15 | May 14, 2025

Updates on the Executive Order to end federal funding for NPR and PBS, plans to eliminate the NEA, NEH and IMLS, and upcoming tax laws that could increase taxes on investment income for endowments and strip non-profit status from organizations the administration deems to be “terrorist supporting”.

Plus additional good news, readings, resources, and important actions to take to have your voice heard by Congress.

May 14, 2025 - This content will be updated as developments unfold.

Latest Developments:

May 1: President Trump issued Executive Order “Ending Taxpayer Subsidization of Biased Media”, calling for an end to federal funding the National Public Radio (NPR) and the Public Broadcasting Service (PBS) receive through the Corporation for Public Broadcasting.

Read: Ending Taxpayer Subsidization Of Biased Media - The White House

NPR and PBS push back against Trump’s order to cut funding: ‘This could be devastating’ - The Guardian

A brief history of NPR funding - Planet Money


May 2
: President Trump released his FY26 budget proposal, which includes plans to eliminate the National Endowment for the Arts (NEA), the National Endowment for the Humanities (NEH), and the Institute of Museum and Library Services (IMLS). While similar proposals have been made by the White House in past years, strong bipartisan support in Congress has consistently protected these cultural agencies.

That evening, the National Endowment for the Arts began sending funding cancellation notices to organizations across the country.

On May 5th, all discipline directors at the NEA announced their decision to select deferred resignation, stepping down by the end of May 2025.

Read: Protecting the NEA: Statement from Americans for the Arts CEO, Erin Harkey - AFTA

Amid Trump Cuts, Officials Resign From the National Endowment for the Arts - The New York Times

May 12: The House Ways and Means Committee released its draft tax legislation, which is the core of a major tax reconciliation package that Republicans hope to enact by summer. The draft tax bill includes many provisions which, if enacted, could have a significant impact on nonprofit organizations nationwide and the people they serve.

Language added Monday to the bill would allow for terminating the tax-exempt status of groups the administration deems “terrorist supporting organizations.” The language mirrors a bill from the last Congress that passed in the House but did not pass the Senate. The definition and criteria for determining whether or how an organization supports terrorism are unclear.

The bill also calls for increasing taxes on investment income at the nation’s foundations and universities. The excise tax on endowment income at foundations would stay at 1.39 percent for foundations with $50 million in assets or less, but it would double — to 2.78 percent — for foundations with assets of $50 million to $250 million. Foundations with assets of $250 million to $5 billion would pay 5 percent, and foundations with $5 billion or more would pay 10 percent.

The National Council of Foundations, National Council of Nonprofits, and the more conservative Philanthropy Roundtable oppose the language.

Read: House Republicans Look to Help Trump Strip Tax-Exempt Status of Nonprofits He Says Support Terrorism - Chronicle of Philanthropy

Tax Bill Takes Shot at the Largest Foundations and Universities - Chronicle of Philanthropy

Statement from Diane Yentel, President & CEO of the National Council of Nonprofits, Denouncing House GOP Tax Bill Targeting Nonprofits - National Council of Nonprofits

May 14: After more than 17 hours of debate, the House Ways and Means Committee voted this morning to approve draft tax legislation in a party-line 26-19 vote. The draft will now move to the chamber’s Budget Committee. Lawmakers there will combine it with spending-cut legislation produced by other committees in preparation for floor action. Lawmakers aim to push the bill through the entire chamber by Memorial Day, with Senate action to follow.

Read: House panel advances tax portion of Trump agenda bill after marathon meeting - The Hill

House tax writers advance GOP bill after marathon, contentious hearing - POLITICO

 

Resources:

 
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Webinar: The First 100 Days & Beyond

The first 100 days of the new administration brought sweeping changes that immediately began reshaping the nonprofit sector. From executive orders and staffing shifts to agency closures and budgetary uncertainty, organizations have been on high alert questioning what to do and what’s coming next. After publishing 14 weekly Government Affairs Digests, Purpose Possible hosted a live webinar, The First 100 Days & Beyond.

 
 

The first 100 days of the new administration brought sweeping changes that immediately began reshaping the nonprofit sector. From executive orders and staffing shifts to agency closures and budgetary uncertainty, organizations have been on high alert questioning what to do and what’s coming next. After publishing 14 weekly Government Affairs Digests, Purpose Possible hosted a live webinar, The First 100 Days & Beyond, featuring:

This session provided key insights for organizations to remain resilient and mission-driven in this evolving policy landscape. The conversation offered guidance and actionable insights to help nonprofit leaders engage effectively with government officials, advocate for their communities, and plan for the road ahead.

Our notes and key takeaways are below:

 

Understanding the Landscape: Government Funding to Nonprofits

Data from The Urban Institute (2021):

  • Georgia:

    • 2,130 nonprofits 

    • $5.2 billion in government grants

    • Top-funded subsectors: Health, Human Services, International Affairs, Arts & Education

  • Maryland:

    • 2,487 nonprofits

    • $6.1 billion in government grants

    • Top-funded subsectors: Arts & Culture, Human Services, Religion-Related & Public/Societal Benefit


Opportunities for Advocacy

  • Don’t limit outreach to elected officials who align politically with your own beliefs. In Georgia, for example, the majority of legislators are Republican—advocacy must be bipartisan to be effective.

  • Build ideologically diverse coalitions. A group of organizations with different approaches united in support or opposition to a bill sends a strong, nonpartisan message.

  • Visual solidarity matters: Group presence (and even matching shirts or a stack of letters of support on an issue) can amplify a message.

  • Engage staff, volunteers, and service recipients—showcase reach and impact through multiple voices. Show direct impact that goes beyond what an organization does. 


Engaging with Government Officials

  • Build the relationship before asking for support

    • Research which legislators care about your issue and represent the people you serve.

    • Follow them on social media, sign up for their newsletters, and attend their public events or town halls—without asking for anything at first.

    • Invite them to your own events and give them the opportunity to connect with constituents.


  • Be Strategic in communications

    • Use the word “constituents:” Make it clear how an organization, or group of organizations support the people in their district.

    • Share personal stories of impact: Vulnerable, honest storytelling is powerful and persuasive across party lines.

    • Offer to be a resource: Stories and data can help shape political messaging.



  • Work Together

    • Strength in numbers: Coalitions can amplify a message, share resources, and represent a broader cross-section of constituents.

    • Organize lobby days to meet legislators en masse. This can be especially impactful when constituents participate and tell an impact story. 



Strategic Planning & Capacity Building

  • Develop an annual advocacy plan: Identify priority issues, key officials, and policy goals at every level of government.

  • Assess funding sources and associated risks, especially during times of fiscal uncertainty.

  • Prioritize collaboration: Work with aligned nonprofits to share resources and strengthen your collective voice, especially when internal capacity is limited.

  • Build on shared values: Position advocacy efforts around mutual goals

 

Nonprofit Government Relations

If your organization is ready to take the next step in advocacy—but unsure where to start—Purpose Possible’s Nonprofit Government Relations service is here to help.

This strategic service is designed to support the fundraising and communications work of Georgia-based organizations by equipping mission-driven entities with the tools, confidence, and clarity needed to engage effectively with policymakers. We provide expert guidance tailored to your mission, capacity, and goals.

Contact us to learn more: purposepossible.com/contact

 

Government Affairs Digests

Our Government Affairs Digests will be published monthly for the foreseeable future. Our team remains committed to closely following government news and will share any significant updates and calls to action as quickly as possible.

Find these digests, previous webinars and many more resources at PurposePossible.com/blog.

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Gov. Affairs | Issue 14 | April 30, 2025

Updates on the Americorps cuts, seven executive orders targeting education reform, and documents from the Dept. of Justice reflect over 360 notices of termination of federal grant awards. Plus the Mellon Foundation Announces $15 Million in funding for Humanities Councils.

Purpose Possible shares additional readings, resources, and actions to take as well as reflections on the first 100 days from the four authors behind the Government Affairs Digest.

April 30, 2025 - This content will be updated as developments unfold.

Latest Developments:

April 25: The Department of Government Efficiency (DOGE) ordered the federal AmeriCorps agency to cut $400 million in funding.

Read: DOGE orders major cut to AmeriCorps funding, imperiling agency’s work
ASC Statement on the Termination of AmeriCorps Grants (America’s Service Commissions)


April 23
: President Trump signed seven executive orders targeting education reform, ranging from university accreditation to a heightened focus on artificial intelligence education.

Read: Trump signs executive orders on school discipline, education reform

Breaking News: Federal Arts Update 4/23/2025 (Arts ActionFund)

April 22: On April 22, the U.S. Department of Justice (DOJ) issued over 360 notices of termination of federal grant awards that funded everything from mental healthcare for police officers to support programs for victims of crime and sexual assault.

Read: US cancels hundreds of grants for police, crime victims, Justice Dept documents show - Reuters

Statement: National CASA/GAL federal funding terminated (The National CASA/GAL Association)

Some Good News:


Government Affairs Task Force Reflections on the First 100 Days:

Laura Moody, Founding Partner, Marketing + Business Development

"Leading the production of this weekly Digest has offered valuable perspectives. On the positive side, it sharpened my focus on taking action amidst widespread uncertainty. On the other hand, it has also brought a heightened awareness to the challenges nonprofits and our nation face. Moving forward, I sincerely hope that our community of engaged practitioners continues to see Purpose Possible as an ally, and I encourage the ongoing sharing of both challenges and triumphs, strengthening our collective impact.”

P.S. The schedule of our Digest is shifting to once per month (the 3rd Thursday of each month) unless a significant piece of news or call to action occurs.

Laura Hennighausen,

Director of Strategic Philanthropy

“We are once again in unprecedented times. Cuts to federal programs and shifts in priorities made it clear how quickly things can change, and how important nonprofits are in stepping up when government support pulls back. But it also became obvious that many people don’t really understand how nonprofits work or why they matter. There’s a real need to better educate the public about the role nonprofit organizations play in our communities. The more people understand, the better we can push back against misinformation and keep the sector strong.”

Mindy Schweitzer-Rawls,

Director of Fundraising Services

“Just days into the new administration taking office, the entire Purpose Possible leadership team found ourselves on an emergency call trying to decipher what the White House’s freeze on federal grants and loans meant for our nonprofit clients, and so many others impacted. Knowing we had a long and likely confusing road ahead, the amount of resources we devoted that day would not be sustainable, yet we needed to remain informed and action-oriented to support our consultants, clients, and the communities we care about. The weekly Government Affairs Weekly Digest served as an outlet for me to process and channel feelings of fear, anger, and sadness (amongst many other percolating emotions) alongside my colleagues into what has become a dependable resource, and most importantly, a unifier during these uncertain times.”

Hayden Brooks, Director of Operations

“Over the last 100 days we have experienced uncertainty and chaos in the non-profit community, across our country, and beyond. Our industry is used to dealing with uncertainty - and it makes us uniquely prepared in some ways to deal with the challenges before us. Many of the questions that nonprofits face today - including how to help the most folks with the resources that are available - are ones that nonprofits have been answering for decades. I hope that the unpredictability of the coming days teaches us new ways to show our power, whether it's through increased advocacy and activism with our elected officials or through innovative opportunities to create coalitions with stronger voices. I have no doubt that the nonprofit community will continue to be an unparalleled source of guidance for many people who may feel a bit hopeless right now.”


Actions:

 
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Gov. Affairs | Issue 13 | April 23, 2025

Updates on the Americorps staffing layoffs and the installment of DOGE staffers at the Interior Department and at the nonprofit Vera Institute of Justice. Additional news concerning open NEA grant awards and speculation on incoming Executive Orders that could affect tax-exempt status.

Plus Purpose Possible is looking for submissions to our good news highlight from you! Read on for additional readings, resources, and webinars too.

April 23, 2025 - This content will be updated as developments unfold.

Latest Developments:

SPECIAL ALERT: National Endowment for the Arts: Organizations with open grant awards through the National Endowment for the Arts have been advised to submit their reimbursement requests as soon as possible. Questions regarding this and what is eligible should be directed to your organization’s program or fund manager.


April 23
: There has been considerable speculation regarding potential new Executive Orders affecting the tax-exempt status of nonprofits and foundations. As of Wednesday afternoon at 3:00 PM EST, no such Executive Orders have been issued. However, the ACLU and Democracy Forward are prepared to respond swiftly should the administration take action. Late last Friday afternoon, members of the Purpose Possible Government Affairs Task Force attended a call led by these organizations, where valuable resources were shared with over 5,000 attendees. We recommend that our clients and other nonprofits review these resources now, in anticipation of any new orders. We are closely monitoring this situation and will provide updates as they become available.

Read: Nonprofits Under Fire: How the IRS Can — and Cannot — Revoke Federal Tax-Exempt Status - The Nonprofit Alliance

Nonprofit Executive Order Preparation and Response - ACLU & Democracy Forward

Relevant for: All nonprofit organizations and foundations


April 17: Interior Secretary Doug Burgum gave DOGE staffer Tyler Hassen the authority to take “all necessary actions” to carry out “consolidation, unification and optimization” at the department and its bureaus. Hassen may now make funding decisions, fire employees, create policy, oversee programs and transfer funds. According to the Washington Post, any grants and contracts worth more than $50,000 are currently under review. Hassen is a former oil executive who worked for Basin Energy, an oil field equipment company, before joining the Trump administration. The Interior Department is an agency with a portfolio that includes national parks, public lands, energy production and tribal affairs.

Read: Interior Department gives broad powers to DOGE-tied official - The Hill

Elon Musk's DOGE is now running America's national parks — SFGate

Interior secretary gives DOGE aide sweeping powers to remake department - Washington Post (Paywall)

Relevant for: Public Lands and partner organizations


April 17: The majority of Americorps staff members were placed on administrative leave with pay, effective immediately. AmeriCorps employs more than 500 full-time federal workers and has an operating budget of roughly $1 billion. The agency oversees a number of volunteering programs and dispatches 200,000 volunteers across the country to work with schoolchildren, veterans and older adults, among other things, according to its website.

Read: Most of AmeriCorps staff members have been placed on leave after DOGE cuts - AP News

DOGE Guts AmeriCorps, Agency That Organizes Community Service Programs - New York Times (Gift Link)

ASC Statement on AmeriCorps Agency Staff Reductions and NCCC Member Demobilization

Relevant For: Any organization that relies upon AmeriCorp staffers


April 17: The nonprofit Vera Institute of Justice says staff from Elon Musk’s Department of Government Efficiency contacted them to assign a team to the organization and told them they planned to similarly install teams with all nonprofits receiving funds appropriated by Congress.

Nick Turner, president of the New York-based criminal justice nonprofit, said Wednesday the nonprofit’s attorneys asked the DOGE staffers what legal basis they had to investigate a nonprofit and informed the staffers that the U.S. Department of Justice recently terminated grants to Vera. The DOGE staffers then withdrew their request to assign a team, according to a transcript of the call provided by Vera.

Why is this important?

This action by DOGE sets a dangerous precedent, leaving any recipient of federal funding — nonprofit, for-profit, and individuals alike — vulnerable to the whims of this destructive group,” Diance Yentel, National Council of Nonprofits said in a statement. Her organization sued to prevent a freeze of all federal funding. Researchers at the Urban Institute found that 103,475 nonprofits received $267 billion in government grants in 2021, according to an analysis of nonprofit tax forms.

Read: DOGE wanted to assign staff to the nonprofit Vera Institute of Justice because it got federal funds - AP

Relevant For: Any nonprofit receiving federal funding


Some Good News:

 
 

We want to hear your good news!

If you have some good news or overall goodness to share, we want to hear it! Your good news submission can be large or teeny tiny, something that has taken place in your community, or something you've done or experienced over the past month that exemplifies goodness.

We will choose a few submissions to include in the upcoming 'Good News' section of Purpose Possible's Government Affairs Digest to amplify goodness.

Enter your Good News Submissions here.

Resources:

The First 100 Days & Beyond: What Nonprofits Need To Know - Purpose Possible Webinar

The first 100 days of the new administration have brought major shifts affecting every corner of the nonprofit sector. From executive orders to staff cuts and agency closures, nonprofit leaders are navigating a rapidly changing landscape with limited guidance and increasing urgency.

Join Purpose Possible for a strategic briefing that breaks down what’s happened, what’s coming, and what your organization can do now. Drawing from the latest Government Affairs Digests and key policy updates, this session will explore the impact on nonprofits and offer practical tools, insights, and recommendations for staying resilient and mission-focused in uncertain times.

Special Guests: Delegate Jheannelle Wilkins, Maryland House of Delegates District 20 and Senator Josh McLaurin, Georgia State Senate District 14.

Justice Funders Member Meeting - Thursday, April 24 at 5pm EST

“We Must Be the Ancestors Our Future Needs: Organizing For Regeneration and Liberation Under Rising Authoritarianism” This meeting will build our collective understanding of and alignment around what is needed of philanthropy in this moment.

Further Reading:

 
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Gov. Affairs | Issue 12 | April 16, 2025

Updates on the federal funding freeze lawsuit filed by National Council of Nonprofits, the DOGE take over of grants.gov, the Harvard University funds freeze, and good news about reinstated HUD funds for both Enterprise and LISC’s Section 4 capacity building grants.

Plus additional readings, resources, webinars and actions to take including a survey from the Ga Center for Nonprofits.

April 16, 2025 - This content will be updated as developments unfold.

Latest Developments:

April 16: Billionaire Elon Musk's U.S. Department of Government Efficiency (DOGE) attempted to place a team with independent nonprofit Vera Institute of Justice, the nonprofit said, marking a further expansion of the cost-cutting agency's move to exercise control over non-governmental groups. It was not immediately clear how many other independent groups, such as Vera Institute, DOGE has contacted, but such a step would mark an increase in its influence beyond the government to private entities that received federal money.*

Read: DOGE attempted to assign team to US nonprofit group Vera Institute of Justice - Reuters

Relevant for: Any nonprofit receiving congressionally allocated funding

* This is a developing story that Purpose Possible will be monitoring


April 15
: Tuesday, a Judge granted the National Council of Nonprofits and co-plaintiffs’ motion for a preliminary nationwide injunction preventing the Trump administration from freezing, haunting, or broadly pausing funding awarded under the Inflation Reduction Act or the Infrastructure Investment and Jobs Act. The judge further orders the administration to take immediate steps to resume the processing, disbursement, and payment of already-awarded funding appropriated under these laws, and to release awarded funds.

Read: From Diane Yentil, President & CEO of National Council of Nonprofits via LinkedIn

Relevant for: Any nonprofit, municipal body, or vendor providing services (such as construction, design, planning) to a municipality with grants awarded under these laws.

April 15: Staffers at the U.S. DOGE Service have taken control of Grants.gov, the website that disseminates information about federal grants and provides a mechanism for applying for the grants. According to unnamed sources referenced by The Washington Post, DOGE employees will now have the power to review and make decisions regarding the awarding of federal grants. The moves are part of a larger effort to limit resources for activities not endorsed by the Trump White House, according to the Post.

Grants.gov “provides a centralized location for grant seekers to find and apply for federal funding opportunities. Today, the Grants.gov system houses information on over 1,000 grant programs,” according to the website. These programs award more than $500 billion annually, per the website. The Grants.gov program management office was established in 2002, per the website.The site itself did not contain any information — or even indication — regarding the reported DOGE takeover. There were no indications of it within the unit’s X (formerly Twitter) feed. As of Saturday afternoon, the latest post on the X feed was from March 25.

Read: DOGE Takes Over Federal Grants Website - The Nonprofit Times

DOGE takes over federal grants website, wresting control of billions - Washington Post

Relevant for: Any nonprofit or for-profit that applies for funding through Grants.gov

April 14: The Trump administration cancelled $2 billion in funding to Harvard University after the school declined to comply with its demands. Those demands included overhauling its hiring practices and reporting international students who break campus rules. Harvard’s response, which called the Trump administration’s demands illegal, marked a major shift in tone for the nation’s most influential school, which has been criticized in recent weeks for capitulating to Trump administration pressure.

Since taking office in January, the Trump administration has aggressively targeted universities, saying it is investigating dozens of schools as it moves to eradicate diversity efforts and what it says is rampant antisemitism on campus. Officials have suspended hundreds of millions of dollars in federal funds for research at universities across the country.

Read: Trump Administration Will Freeze $2 Billion After Harvard Refuses Demands (New York Times - Unlocked)

Relevant For: Higher Education, Education, Democracy, First Amendment Rights

Resource: Chronicle of Higher Education Webinar: Understanding the New Legal Landscape: Navigating Uncertainty Under Trump ($89 Fee)

Some Good News:

April 11: The U.S. Department of Housing and Urban Development (HUD) has reinstated both Enterprise and LISC’s Section 4 Capacity Building for Community Development and Affordable Housing Program funding following a successful appeal that included petitions and testimonials from nonprofit partners across the country. This is a much-needed outcome for collaborative partners nationwide to advance housing and community development initiatives.

Read: LISC’s Section 4 Funding Reinstated, HUD Reaffirms Section 4 Partnership with Enterprise to Reduce Housing Costs

Relevant For: Housing, Economic Development, Capacity Building

Resources:


Actions to Take

 
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Gov. Affairs | Issue 11 | April 9, 2025

Updates on the latest lawsuits filed to stop an Executive Order from dismantling three agencies under the National Endowment for the Humanities, the developing complaints filed by the conservative American Alliance for Equal Rights against three non-profits, and a breakdown of the Georgia Legislative Session which ended 4/4/25.

Plus additional readings, resources, and actions to take including ones for funders.

April 9, 2025 - This content will be updated as developments unfold.

Latest Developments:

April 4: A lawsuit was filed by 21 State Attorneys General to stop President Trump's Executive Order #14238 from dismantling 3 federal agencies that provide services and funding for museums and public libraries, mediation services, and minority business development. Specifically, the Institute of Museum and Library Services was forced to place 85% of its staff on administrative leave and cancel all open grants on 3/31/25. This lawsuit is led by the Attorneys General of New York, Hawaii, and Rhode Island and are joined by Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Vermont, Washington state, and Wisconsin.

The lawsuit argues that the executive order violates the Constitution and the Administrative Procedure Act by eliminating the programs of agencies without any regard for the laws and regulations that govern each source of federal funding. The coalition argues that the President cannot decide unilaterally to override laws governing federal spending, and that this executive order unconstitutionally overrides Congress’ power to decide how federal funds are spent.

Read: Read more about this update from Americans for the Arts

A Message to Our Friends and Supporters: Take Action to Save the NEH - Georgia Humanities

Relevant for: Libraries, Museums, Historians, Academia, Minority Business Development, Mediation Services

April 1: The conservative American Alliance for Equal Rights (AAER) formally filed complaints with the Internal Revenue Service (IRS) to open investigations regarding three prominent tax-exempt charitable organizations—the Gates Foundation, Lagrant Foundation, and Creative Capital Foundation—"intentionally discriminating against white people." The complaints request the IRS revoke their tax-exempt 501(c)(3) charitable status.

Read: More about this update from Americans for the Arts (Press Release)

Relevant for: Public Health, Mental Health, Addiction Services

Georgia Legislative Session Report:

The 2025 Georgia Legislative Session wrapped on Friday, April 4, as the Georgia Senate decided to adjourn earlier than previous sessions. As a result, and even with 260 bills and numerous resolutions being passed, the 2025 Session will be remembered by some as much for the legislation that did not reach Governor Brian Kemp’s desk.

Among the bills that will proceed to Governor Kemp’s desk include many that address hot-button, cultural issues that impact the nonprofit community:

Bills that impact the nonprofit community that did not pass during the 2025 Session include:

The Georgia Legislature also passed the 2026 budget, House Bill 68 - the only legislative piece that they are required to pass yearly. For some highlights on the 2026 budget, please read the Georgia Budget and Policy Institute’s Legislative Wrap-up.

For additional information on bills that did and did not pass in the 2025 Georgia Legislative Session, please visit WABE’s 2025 Gold Dome Tracker & the AJC’s Georgia Legislative Navigator.

As a final reminder, please note that the Georgia General Assembly operates on a two-year cycle, meaning the legislative session is a non-consecutive 40-day period beginning in January, and bills that don't pass during the first year can be considered again the following year. The 2025 Legislative Session was the first year of the current two-year cycle.

SOME GOOD NEWS:

Actions to Take:


Resources:

 
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Gov. Affairs | Issue 10 | April 1, 2025

Updates on the latest Executive Orders aimed at elections, the Smithsonian and the Institute of Museum and Library Services. Additional updates on the recent challenges to NPR and PBS, funding cuts form the Dept. of Health and Human Services, and a look at ongoing developments as a judge considers the new NEA grant guidelines.

Plus additional readings and resources including updates on required certifications for recipients of federal funding and upcoming webinars.

UPDATED April 4, 2025

Latest Developments:

April 4: NEA Special Update

Key takeaways from Theatre Communications Group who is part of the ACLU-led lawsuit challenging the National Endowment for the Arts’ funding restriction tied to “gender ideology.”

  • As a reminder: the current state of the application process is that the NEA temporarily removed the restriction that forced applicants to agree that they will not “promote” what is being referred to as “gender ideology” in order to receive federal funding.

  • In addition, the NEA advised the judge on March 7th that the NEA was in an internal process of evaluating how the executive order would be implemented.

  • The NEA has not yet finalized how it will apply the restriction (including whether it may be reinstated), but it has indicated a decision may come after April 30.

  • This ruling does not prevent the NEA from reimposing the restriction.

  • With this ruling, the court has given a preliminary review of the strength of our argument and that review suggests reinstating the “gender ideology” criteria would be unlawful.

Read: Explanation of ruling from Theatre Communications Group

AP News article about ruling

Resource: EXECUTIVE ACTIONS & THEIR IMPACT ON THE ARTS: A Comprehensive Guide

Call to Action from Americans for the Arts: URGENT UPDATE: Special Session Today

Join us today, April 4th at 4:00 PM ET for a critical Office Hours discussion on the unprecedented changes at federal cultural agencies. Featuring key representatives from ACLU Rhode Island, National Humanities Alliance, American Library Association, and Federation of State Humanities Councils. Register now for this crucial conversation about protecting federal support for arts and culture.

We’ll address:

  • IMLS staff administrative leave situation

  • DOGE’s recommendation of severe cuts to NEH

  • Potential impacts on NEA and other agencies

  • Latest developments in ACLU’s NEA lawsuit

March 25: President Trump signed an executive order entitled “Preserving and Protecting the Integrity of American Elections,” seeking to make changes to the way federal elections are administered at the state level, which will be challenged in court as unconstitutional per Article I, Section 4, Clause 1 of the Constitution. It has been noted that the executive order inaccurately describes the rules of nonprofit lobbying with federal funds.

Read: Executive Order on Election Administration - Nonprofit Vote

Relevant for: Any American voter, Nonprofits focused on voter access

March 26: The U.S. Department of Health and Human Services canceled around $12 billion in federal grants to states that were allocated during the COVID-19 pandemic. The grants were being used to track, prevent, and control infectious diseases, including measles and bird flu, as well as track mental health services and fund addiction treatment.

Read: US pulls back $12 billion in funding to state health departments - Reuters

Relevant for: Public Health, Mental Health, Addiction Services

House DOGE Subcommittee Chair Marjorie Taylor Greene (R-GA) held a hearing on “Anti-American Airwaves: Holding the Heads of NPR and PBS Accountable.” President Trump is expected to sign a threatened executive order to defund federal funding for the Corporation for Public Broadcasting, which partially funds these two public media outlets. Note: This move would harm rural communities the most, as stations in larger markets fundraise to support the majority of their operations, and rural stations rely heavily on CPB funds.

Watch: PBS and NPR leaders testify on federal support for public broadcasting in House hearing

Read: Americans more likely to support than oppose continuing federal funding for NPR and PBS - Pew Research Center

Relevant for: Nonprofit Media, Democracy-focused orgs, Rural Access

March 27: President Trump signed an executive order entitled "Restoring Truth and Sanity to American History," aiming to eliminate "divisive, race-centered ideology" from federal historical institutions. The order directs Vice President Vance to oversee the removal of such ideologies from the Smithsonian Institution's museums, educational and research centers, and the National Zoo. Among the other directives in the executive order, it also instructs the Secretary of the Interior to investigate similar "divisive, race-centered ideology" found on federal monuments, memorials, statues, and markers within the Secretary’s jurisdiction.

Read: Trump executive order seeks to 'restore' American history through Smithsonian overhaul - NPR

Smithsonian Faces New Executive Order on Content Review as Secretary Bunch Reaffirms Commitment to Scholarship - Diverse: Issues in Higher Education

Relevant for: Education, Researchers, History, Arts, Humanities, Museums

Senior U.S. District Court Judge William Smith of Rhode Island heard arguments concerning the constitutionality of complying with President Trump’s “gender ideology” Executive Order #14168, linked to the National Endowment for the Arts new grant guidelines. While Judge Smith did not promise an injunction, he said he would help get the plaintiffs "out of this 'Hobson's choice' they have to make about whether to submit a proposal they want to submit versus the proposal they think they might have to submit." A ruling is expected on 4/3/25 or by the morning of the following day.

Read: LGBTQ+ theater groups have day in court over endangered arts funding - Rhode Island Current

Relevant for: Arts & Culture, Artists & Curators, Creative Placemaking

March 31: All Institute of Museum and Library Services staff were put on administrative leave two weeks after President Trump issued an executive order naming the independent agency as one of seven that should be “eliminated to the maximum extent consistent with applicable law.”

Read: Letter signed by all IMLS Board Members to Acting Director Keith E. Sonderling in support of the agency

Trump Administration Moves to Shutter Library Agency - New York Times

ALA says White House “cutting off opportunity” for Americans as administration cuts IMLS staff - American Library Association

AAM Statement on the Placing of IMLS Staff on Administrative Leave - American Alliance of Museums

IMLS Interactive Map of Grantees - IMLS

Relevant for: Education, Researchers, History, Arts, Humanities, Libraries

SOME GOOD NEWS:


Resources:

Further Reading:

 
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Gov. Affairs | Issue 9 | March 26, 2025

Updates on a select number of education grants that have been temporarily reinstated by a Judge in Maryland, the partial restoration of USAID operations by a Judge’s ruling, and the executive order to close the Dept. of Education.

Plus additional readings and resources including upcoming webinars and a few snippets of good news.

March 26, 2025 - This content will be updated as developments unfold.

Latest Developments:

March 17: U.S. District Judge Julie Rubin in Maryland ordered the Trump administration to temporarily reinstate some of the education grants it had nixed as part of its work to end DEI initiatives. These grants, funded under three Congressionally appropriated programs—Supporting Effective Educator Development (SEED) Program, Teacher Quality Partnership (TQP) Program, and Teacher and School Leader Incentive (TSL) Program—were used to support programs that prepare and develop educators.

Read: Judge orders reinstatement of education grants axed by Trump in DEI sweep

March 18: Judge Theodore D. Chuang ruled that Elon Musk and his team likely violated the Constitution by shutting down USAID, infringing on Congress’s authority. He ordered the partial restoration of USAID operations, reinstatement of employee email access, a reoccupation plan for evicted employees, and barred Musk’s team from further involvement in the shutdown.

Read: Maryland judge temporarily blocks DOGE efforts to dismantle USAID - The Washington Post

March 20: United States President Donald Trump signed an executive order that ordered the Secretary of Education to facilitate the closure of the Department of Education. The President cannot fully close the Department without approval from Congress because only the legislature has the discretion to close a cabinet-level department. Student loan administration, including Public Service Loan Forgiveness, is being transferred to the Small Business Administration.

Read: Why is Trump dismantling the Department of Education – and what’s next? | Donald Trump News | Al Jazeera

President Trump just signed an executive order to dismantle the Department of Education “once and for all.” What does this mean for Atlanta Public Schools? | Center for Civic Innovation

Trump Administration Is Sued Over Push to Dismantle Education Department - The New York Times

SOME GOOD NEWS: Fewer People are Dying from Drug Overdoses, the Mediterranean Monk Seal is Making a Comeback, Lincoln Center Receives a Record-Breaking $50 Million Gift for Contemporary Dance, and more from Vox.

Actions to Take:

Help Expand Nonprofit Financial Commons’ 12 Financial Action Steps for Nonprofits!

  • Nonprofits must stay financially strong to sustain their missions, and the 12 Financial Action Steps provide a great foundation. But we know there’s always more to consider! What key advisory points would you add to strengthen these steps?


Resources:

 
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Government Affairs Digests Emily Llamazales Government Affairs Digests Emily Llamazales

Gov. Affairs | Issue 8 | March 19, 2025

Updates on affordable housing funding contract cuts, two executive orders targeting DEI efforts have been reinstated, and additional US agencies like the Institute of Museum and Library Services may be forced to shut down. On a positive note, a judge has blocked the EPA from reclaiming climate-related grants from three organizations.

Plus additional readings and resources including upcoming webinars.

March 19, 2025 - This content will be updated as developments unfold.

Latest Developments:

March 3: The Trump administration has stalled at least $60 million in funding intended largely for affordable housing developments nationwide, throwing hundreds of projects into a precarious limbo, according to information and documents obtained by The Associated Press.

The move is part of a flurry of funding freezes, staffing cuts and contract cancellations by the Trump administration at the U.S. Department of Housing and Urban Development, changes that have instilled widespread uncertainty in the affordable housing industry. The $60 million is intended to go to small community development nonprofits in small grants. The money is often used as seed funding for affordable housing projects, turning a concept into a viable development and consequently drawing in more public and private investment. Congress chose three nonprofits to distribute the grants, but HUD said in letters that it was canceling contracts with two of the organizations, which together were to distribute the $60 million. That’s pushed millions in funding already promised to small nonprofits, or yet to be awarded, into the twilight zone.

Read: Trump administration throws hundreds of affordable housing projects into limbo after contract cuts - AP

Trump’s Funding Freeze Halts Hundreds of Affordable Housing Projects - TIME

Relevant for: Housing, Community Development, Economic Development

March 12: Biden-appointed National Endowment for the Humanities (NEH) Chair Shelly Lowe was ordered to leave her position “at the direction of President Trump.” NEH General Counsel Michael McDonald will serve as Acting Chair.

Read: Trump pushes out National Endowment for the Humanities chair, official says - The Hill

Relevant for: Arts & Culture, Humanities, Museums, Archives, etc.

March 13: National Council of Nonprofits filed a lawsuit challenging the Trump administration’s unlawful freeze on funding from the congressionally-approved Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law—critical investments that help communities combat climate change, improve infrastructure, and protect public health. The freeze, ordered through President Trump’s “Unleashing American Energy” executive order and implemented by the Office of Management and Budget, Environmental Protection Agency, and the Departments of Agriculture, Energy, and the Interior, has left vital community projects in limbo—hurting public lands, clean energy initiatives, local economies, and communities.

Read: Press Release

Relevant for: Environmental Sustainability, Climate Change, Climate Justice, Clean Energy, Preservation of Public Lands, etc.

March 14: A federal appeals court has given President Donald Trump’s administration the go-ahead to enforce a pair of controversial executive orders that seek to root out diversity, equity and inclusion efforts at federal agencies and government contractors.

The three-member appeals panel — including two judges appointed by Democratic presidents lifted a lower court’s injunction that had put the policy on hold last month. The ruling Friday from the panel of the Richmond, Virginia-based 4th Circuit Court of Appeals is not a final decision on the legality of Trump’s anti-DEI policy. It merely allows the government to administer the policy while litigation continues.

Read: Appeals court allows Trump to reinstate two executive orders targeting DEI - Politico

Relevant for: Any organization with programming related to or incorporating principles of diversity, equity, or inclusion.

March 15: President Donald Trump has signaled the next set of agencies on the chopping block, as his administration looks to cut down the size of the federal government. Trump, in a late Friday executive order, gutted several smaller offices and agencies that serve wide-ranging roles in the government, from addressing homelessness to funding libraries. The order said the agencies and offices will have all of their federal grants reviewed and they will be “eliminated to the maximum extent consistent with applicable law.” On the list is the U.S. Agency for Global Media, which oversees Voice of America and Radio Free Asia, and the Institute of Museum and Library Services.

Read: Trump’s next agency cuts include US-backed global media, library and museum grants - Politico

Relevant for: Museums, Archives, Libraries, Humanities, Arts, Media

March 19: SOME POSITIVE NEWS: This week, a federal judge issued a temporary restraining order blocking the Environmental Protection Agency (EPA) from reclaiming climate-related grants from three environmental organizations. The EPA had attempted to terminate these grant agreements, citing concerns of fraud and abuse. However, the judge found these claims to be vague and unsupported by clear evidence, and noted that without the order, the organizations would face imminent harm, including the inability to pay employees and continue their projects. This decision allows the nonprofits to maintain their funding and continue their environmental initiatives.

Read: US judge blocks Trump's EPA from clawing back climate grants - Reuters

Relevant for: Organizations dealing with climate-related grants


Resources:

 
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Government Affairs Digests Emily Llamazales Government Affairs Digests Emily Llamazales

Gov. Affairs | Issue 7 | March 12, 2025

Updates on the USDA funding cuts impacting two key programs, how nonprofits are continuing to respond with lawsuits, and a potential government shutdown by the end of this week including a potential $1B budget cut for DC alone.

Plus additional readings and resources including upcoming webinars and actions to take when planning to have difficult conversations with your team or Board of Directors.

March 12, 2025 - This content will be updated as developments unfold.

Latest Developments:

The USDA Cuts Funding: On Monday, March 10, the U.S. Department of Agriculture (USDA) announced cuts of over $1 billion in funding for two key programs aimed at supporting schools and food banks. The $660 million Local Food for Schools program, which helps schools buy food from local farms, and the Local Food Purchase Assistance Cooperative Agreement Program, which would have funded $500 million to support food banks, are both being discontinued for 2025. This move comes amid ongoing trade tensions and economic difficulties faced by U.S. farmers and food organizations.

Read: USDA cancels $1 billion in funding for schools and food banks to buy food from local suppliers – CBS News

Nonprofits Continue to Respond: Numerous groups have filed lawsuits over funding freezes and sudden changes to regulations.

Potential Government Shutdown: On Tuesday, March 11th, the House passed a bill to fund the government through September 30 and avert a shutdown at the end of the week. The bill passed the House 217-213, with only one Democrat voting in favor. The Senate has until the end of the day Friday, March 14th, to vote on the CR (Continuing Resolution). Senate Republicans control 53 seats and would need at least eight Democratic votes to reach the 60-vote threshold needed to overcome a filibuster and pass the CR.

Read: Potential government shutdown approaches as March 14 deadline looms. Here's what to know. - CBS News

Read: The Uphill Battle: Nonprofits Fighting to Keep Our Neighbors Housed - SaportaReport

For our DC-based clients: The CR passed by the House would lead to an immediate $1B cut to the FY25 DC budget, including significant cuts to DC public schools, MPD, Fire and Emergency Medical Services, WMATA, DHS, and more.

Read: DC braces for $1 billion budget cut after House ignores spending bill plea

Action: The Senate could vote on the bill as soon as Wednesday night. Call the Senate today and every day until the vote using this script and list of priority legislators.

Further Reading:

  • For regular, happy news - Vox has launched Good News, a weekly newsletter that’s here to swap your doomscrolling for a dose of hope and positivity. Sign up here.


Actions to Take:

Having Difficult Conversations: Tools for Talking about Tough Topics with Your Team or Board

Active listening keeps both the speaker and listener fully engaged by fostering understanding, response, and retention. You can employ these techniques to communicate effectively about any topic, but especially when navigating challenging issues.

Active Listening in Action

  • Observe: Pay attention to body language & behavior.

  • Engage: Use visual cues (nodding, eye contact) & ask clarifying questions.

  • Minimize Distractions: Silence notifications & avoid interruptions.

  • Stay Open-Minded: Focus on making the speaker feel heard, not on judging or responding.

  • Verify Understanding: Reflect and confirm key takeaways.

  • Be Ready: Keep your active listening skills sharp for all coaching moments.

The 6 Core Active Listening Techniques

  • Pay Attention – Give full focus to the speaker.

  • Withhold Judgment – Listen without jumping to conclusions.

  • Reflect – Repeat and paraphrase to ensure understanding.

  • Clarify – Ask questions to deepen comprehension.

  • Summarize – Restate key points for alignment.

  • Share – Offer thoughtful insights when appropriate.

Work to build a listening culture that is followed by action. Strong active listening builds trust, fosters open communication, and creates a supportive coaching environment for nonprofit leaders and their teams.

*Summarized from Communicating in a Crisis: What, When, and How - Center for Creative Leadership

Resources:

The Legal Landscape and Path Ahead for Nonprofits and Philanthropy

Uncharted: Navigating the New Federal Landscape

Updated Resources from National Council of Nonprofits

 
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Government Affairs Digests Emily Llamazales Government Affairs Digests Emily Llamazales

Government Affairs Digest: What Nonprofits Need to Know (Part 6)

The National Council of Nonprofits (NCN) filed a new motion and declaration in their case of NCN v OMB (Office of Management & Budget).

A divided Supreme Court turned down a request by the Trump administration to block $2 billion in foreign-aid reimbursements for work already completed.

Plus additional readings and resources.

March 5, 2025 - This content will be updated as developments unfold.

Latest Developments:

March 2: National Council of Nonprofits (NCN) filed a NEW motion and declaration in our case of National Council of Nonprofits v OMB (Office of Management & Budget). NCN is asking the judge to clarify that Continuum of Care (CoC) grants that have already been awarded are covered under the court’s Preliminary Injunction preventing the administration from implementing broad federal funding freezes.

Background: In late January, HUD awarded $3.6B in CoC grants to 7,000 grantees providing the full continuum of outreach, shelter, services, housing to people experiencing homelessness. The funding hasn’t been disbursed and the delay is causing concern - soon, it may cause service disruptions or closures.


Read: Diane Yentel, President & CEO National Council of Nonrofits (LinkedIN)

Relevant for: Housing, Affordable Housing, Homelessness, Supportive Housing Organizations


March 3: A divided Supreme Court on Wednesday turned down a request by the Trump administration to lift an order by a federal judge in Washington, D.C., that had directed the State Department and the U.S. Agency for International Development to pay nearly $2 billion in foreign-aid reimbursements for work that has already been done.

In a brief unsigned opinion, the court noted that the Feb. 26 deadline for the government to make the payments had already passed. It instructed U.S. District Judge Amir Ali to “clarify what obligations the Government must fulfill to ensure compliance” with the temporary restraining order that Ali has entered in the case, paying attention to how feasible it is for the government to comply with those timelines.

Ali is expected to hold a hearing on the aid groups’ motion for a preliminary injunction – which, if granted, would suspend the freeze on foreign-assistance funding going forward – on Thursday, March 6. This means that the dispute could return to the Supreme Court as an emergency appeal again soon.

Read: Supreme Court denies Trump request to block $2 billion foreign-aid payment - SCOTUS Blog

Relevant for: Any organization with programs or partners receiving USAID funding.

Actions to Take:

  • Review the tools and recommendations available in our earlier Government Affairs Digests and consider scheduling a Scenario Planning Session with Purpose Possible.


 
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