Gov. Affairs | Issue 17 | July 17, 2025
Updated July 22, 2025 - This content will be updated as developments unfold.
Latest Developments:
Rescissions Package Passed
The Rescissions Act of 2025, requested by President Trump, has passed both chambers of Congress and is awaiting his signature. The bill rolls back approximately $9 billion in previously approved but unspent funds, including about $8 billion from foreign aid programs such as USAID, and $1.1 billion from the Corporation for Public Broadcasting, which supports NPR and PBS. While some proposed cuts—like those targeting PEPFAR—were dropped after bipartisan pushback, the final package marks the most significant use of the rescission process in over two decades. The funding reductions are set to take effect in the new fiscal year, raising concerns about the impact on international development efforts and local public media stations.
Read: House passes rescission package to claw back $9.4 billion in funding for foreign aid, NPR, PBS (CBS News)
NPR to cut its budget by $8 million to provide relief to vulnerable member stations (Texas Public Radio)
Republicans Scrap Plan to Cut $400 Million From PEPFAR Anti-AIDS Program (TIME)
One Big Beautiful Bill Signed Into Law
On July 4, 2025, President Trump signed H.R. 1, known as the One Big Beautiful Bill Act, into law. Many have written about prior iterations of the bill as it worked its way through the House, then the Senate, and then back to the House. The Nonprofit Law Blog has broken down the anticipated impacts across a variety of nonprofit issues - higher education, charitable contributions, the environment, and more.
Read: Analysis of the 2025 Tax Bill and Its Impact on Charitable Nonprofits (Council of Nonprofits)
Some Highlights of H.R. 1 – One Big Beautiful Bill Act (Nonprofit Law Blog)
The One Big Beautiful Bill Act: A Comprehensive Holland & Knight Analysis (Holland & Knight)
$6 Billion in Federal Education Grants Frozen
A coalition of 24 states and the District of Columbia sued the Trump administration on Monday over the administration's decision to freeze more than $6 billion in federal education grants for K-12 schools and adult education. The move comes two weeks after the Trump administration first notified states that it was withholding the previously approved funds.
Read: 24 states sue Trump admin to unfreeze more than $6 billion in education grants (NPR)
The Johnson Amendment
In a court filing, the IRS said the decades-old Johnson Amendment ban on campaigning by tax-exempt groups should not apply to houses of worship speaking to their own members.
Read: I.R.S. Says Churches Can Endorse Candidates From the Pulpit (New York Times)
IRS Weakens Johnson Amendment—Nonprofits Push Back (Nonprofit Quarterly)
Protecting the Johnson Amendment and Nonprofit Nonpartisanship (Council of Nonprofits)
Local Updates:
Georgia governor calls for contingency budget plans amid ‘national’ changes - The Current
Georgia governor's office asks state agencies to prepare backup plans due to federal government funding cuts and services under Trump's tax-and-spending bill.
Mayor Bowser Presents Fiscal Year 2026 Budget: Grow DC
Closing the FY25 CR Gap
The District faced two challenges when building a FY 2025 supplemental:
Based on the Continuing Resolution (CR) passed by the House, DC was required to reduce its previously approved budget authority by $1.13 billion. As happens every year, the District also needed to address $167 million of current year spending pressures as well as make $180 million resources available to meet year-end obligations.
To address these two issues, the District:
Instituted a hiring freeze saving $63 million in personnel costs
Made $175 million of non-personnel services reductions
Shifted $202 million of spending and costs that could wait from FY25 to FY26 or FY27 in workforce investment and HPTF and $160 million of local funds into special purpose revenue funds in FY 25
Captured $117 million of excess special purpose and dedicated tax revenues
Good News:
Despite Tough Times, Some Good News About CSR And Nonprofit Alliances - Forbes
Many corporations have adopted lower profiles when it comes to speaking out on social issues in general and on hot button topics such as DEI and ESG in particular, but two recent studies underscore the wisdom of corporate social impact investment.
Historic Land Deal Protects 8,000 Acres Near Okefenokee Swamp
Resources:
Free, in-person event, Purpose of Giving 2025 - REGISTER TODAY
Join Purpose Possible for The Purpose of Giving, an insightful conversation on the state of philanthropy and what it means for mission-driven organizations.
Hosted at the historic Plaza Theatre, this free event will unpack the key findings from the Giving USA 2025 report—the most comprehensive and longest-running analysis of charitable giving in the United States. We will explore the latest data, shifts in donor behavior, and how nonprofit and philanthropic leaders can apply these insights to strengthen their strategies and impact.
The program will feature a panel discussion moderated by Laura Hennighausen, Purpose Possible’s Director of Strategic Philanthropy. Panelists include Laura MacDonald, Past Chair of the Giving USA Foundation and Founder of Benefactor Group; Atiba Mbiwan, Executive Director of the Zeist Foundation; Ashley Collier, Chief Development Officer for Boys & Girls Clubs of Metro Atlanta; and Rev. Tony Johns, Executive Director of Crossroads Atlanta.
Whether you’re a fundraiser, executive director, board member, or philanthropic advisor, this event offers timely insights to help you navigate today’s giving landscape with confidence.
The Tax Bill Will Upend Corporate Giving. Here’s How to Prepare - The Chronicle of Philanthropy
Our friend and colleague, Laura MacDonald of Benefactor Group, recently published an article to prepare nonprofits for how the tax bill will impact corporate donations.
Webinar: Organizing in Divided Times: The Relational Infrastructure We Need to Protect Democracy July 24, 2pm EST Nonprofit Quarterly
IRS Weakens Johnson Amendment—Nonprofits Push Back - Non Profit News
