Gov. Affairs | Issue 25 | January 22, 2026
Updated January 26, 2026
While we track policy shifts and national headlines related to nonprofit wellbeing, we also want to acknowledge that what is happening in Minnesota and across the country is heartbreaking. For communities already under immense pressure, it is natural to feel a sense of grief, exhaustion, or fear. In these moments, caring for one another is just as important as the work itself. We encourage you to check in with your friends, family, colleagues, and teams. Create space for those around you to process and cope with the stresses, uncertainties, and myriad of emotions that comes with the current state of the country.
If you are looking for ways to support the wellbeing of colleagues, community, and yourself here are a few things you can do:
Limit meetings when possible: Consider canceling or postponing meetings and activities this week. If meetings must happen, take a moment to pause, acknowledge what’s happening, and make room for the feelings people may be carrying before moving into work.
Step away: Take a walk, meditate, or disconnect from media and technology to allow your brain to process and reset. Encourage those around you to do the same.
Share resources: "Know Your Rights" cards (available in multiple languages HERE) can be kept in a car or bag. If you see someone in your community who looks distressed or uncertain, offering a resource can be a quiet, powerful way to help.
Published January 22, 2026 - This content will be updated as developments unfold.
Navigating New Year "Whiplash"
The first few weeks of the year have moved at a breakneck pace, leaving many in the nonprofit and social service sectors feeling a sense of whiplash. Policy shifts are occurring with unprecedented speed, often characterized by rapid reversals. Perhaps the most jarring example was the sudden announcement of $2 billion in cuts to SAMHSA grants, followed almost immediately by their reinstatement. This digest is designed to help you track these fast-moving developments and provide stable resources to help navigate the changing landscape.
And if you live and work in D.C. or Georgia, be sure to check out our Spotlight on Local, two special editions covering DC’s 2026 Elections and the budget priorities being decided under the Gold Dome in Atlanta. Both are linked at the bottom of this Digest.
Latest Developments:
The TANF Funding Freeze: What It Means for Families (January 7, 2026)
The freeze impacts the core safety net for low-income families, affecting everything from direct cash assistance to childcare subsidies and job training programs specifically in California, Colorado, Illinois, Minnesota and New York. While the administration cites a need for a "programmatic audit," advocates warn that even a temporary pause in fund distribution could leave millions of vulnerable households without basic necessities.
Read: Trump is freezing funds for small but key welfare program. Here’s what TANF does (CNN Politics)
The SAMHSA Grant Reversal: A Crisis Averted (January 14, 2026)
Following an initial directive to terminate $2 billion in addiction and mental health grants, the administration sent follow-up correspondence effectively walking back the most immediate cuts. While the reinstatement provides temporary relief for community health centers and recovery programs that were bracing for closure, the incident has raised significant concerns regarding the long-term stability of federal health funding and the potential for future funding pauses.
Read: Whiplash as addiction and mental health treatment gets cut and restored (NPR)
‘It’s whiplash’: reversed cuts ‘incredibly disruptive’ for US mental health and substance abuse programs (The Guardian)
Legal Challenges and the Free Press: The Impact on Nonprofits
Recent lawsuits filed by the administration against various media outlets are being viewed by legal experts as an attempt to stifle the press. For the nonprofit sector, this poses a dual threat: it challenges the First Amendment protections that many advocacy organizations rely on, and it creates a chilling effect that may discourage transparency and public criticism of government policy.
Read: Trump lawsuits seek to muzzle media posing serious threat to free press (Nonprofit Quarterly)
Some Good News out of ATL:
From Partners for HOME (January 20, 2026)
We’re grateful to share some good news.
Fulton County has confirmed that funding for supportive services through the Home First initiative will be in the FY26 budget. This means the more than 300 people in Permanent Supportive Housing receiving services through the Home First initiative, and the more than 200 units coming online in 2026 will all receive supportive services!
In addition, the County has committed to working with Partner for HOME to identify sustainable funding solutions beyond FY 26, recognizing the importance of long-term planning to keep people housed.
This outcome reflects the power of collective advocacy and partnership. Thank you to everyone who spoke up to help reinforce that housing works best when paired with supportive services.
We extend our sincere thanks to the Fulton County Board of Commissioners for their leadership and collaboration.
We encourage the following actions as next steps:
• Share the petition update with your networks.
• Send a thank you email to your Fulton County Commissioner.
Resources:
Independent Sector: Policy Action Center
This comprehensive tracker has been updated for 2026 and is an essential tool for nonprofit leaders. It monitors the policy landscape, providing real-time updates on federal legislation, executive orders, and regulatory changes that specifically impact 501(c)(3) organizations. It is particularly useful for tracking changes in charitable giving incentives and nonprofit workforce regulations.
Spotlight on Local:
While the national headlines often dominate the conversation with sweeping federal shifts, the most immediate impacts on where we live and work often happen much closer to home. For the high volume of our clients who call the District of Columbia or the State of Georgia home, the next few months will be pivotal. We are highlighting these two regions because the local decisions made this spring—from mayoral platforms in the District to budget priorities under the Gold Dome in Atlanta—will directly shape the resources and stability available to your communities.
For further insight into DC’s 2026 Elections and the second year of the biennial 2025 - 2026 Legislative Session in Georgia, check out the following special editions of the Government Affairs Digest below:
