Gov. Affairs | Issue 28 | April 23, 2026
Published April 23, 2026 - This content will be updated as developments unfold.
Latest Developments:
Trump Administration Files to Dismiss NCN’s Lawsuit to Protect Public Service Loan Forgiveness
The Trump administration has filed a motion to dismiss National Council of Nonprofits v. McMahon, a lawsuit challenging the Department of Education’s overhaul of the Public Service Loan Forgiveness (PSLF) program. Filed in late 2025, the suit argues the administration's attempt to adjust eligibility based on political ideology is an unlawful overreach that undermines the program’s bipartisan intent.
A broad coalition of plaintiffs—including several major U.S. cities, legal aid organizations, and national unions—is represented by Protect Borrowers and Democracy Forward in the effort to safeguard the program. The coalition maintains that PSLF must remain a stable promise to those in public service, regardless of changing political priorities. The court is expected to hear oral arguments in early May.
IRS CEO Testifies on Investigations into Nonprofits (National Council of Nonprofits)
On April 15, IRS CEO Bisignano testified before the Senate Finance Committee, addressing a new joint initiative between the IRS and FBI to investigate nonprofits for suspected links to domestic terrorism. Despite a national security presidential memorandum directing the agency to disrupt entities allegedly financing political violence, Bisignano assured lawmakers that the IRS has received no requests from the White House to target specific organizations. He explicitly clarified that nonviolent protest and litigation against the administration do not constitute grounds for investigation and reiterated his commitment to ensuring that audits and tax-exempt status revocations are not used as tools for political or ideological targeting.
Some Good News:
Trump administration withdraws appeal, securing historic victory for libraries and IMLS (American Library Association)
On April 6, the Trump Administration withdrew its appeal of a federal court ruling that had struck down efforts to dismantle the Institute of Museum and Library Services (IMLS), the nation’s primary federal funding source for libraries. This decision concludes a legal battle initiated by 21 state Attorneys General and effectively upholds a November 2025 permanent injunction against eliminating the agency. While the American Library Association characterized the dismissal as a major victory for equitable information access, the organization cautioned that the agency's long-term stability still hinges on the FY 2027 appropriations process, calling on advocates to ensure Congress continues to fund these essential community services.
Government Affairs Digest Special Update:
The landscape of digital philanthropy is currently facing a significant legal and ethical reckoning as state regulators and nonprofit advocates challenge the long-standing practices of major crowdfunding platforms. In this Special Update, learn more about the lawsuits and steps to take to protect your organization.
Call to Action (from the Council on Foundations):
Support the Workforce Development Through Post-Graduation Scholarships Act.
Support the Charitable Rollover Facilitation and Enhancement Act (H.R.2891).
Support theCongressional Philanthropy Caucus.
Resources:
Georgia-Based Resource:
April 28, 2026 3:30-5:00
Conversations@TechSquare: Beyond Pilots: Innovations, Institutions, and Impact in a Post-Aid World
The discussion will tackle big questions: What does “scaling” really mean in a post-aid world? What market forces and financing mechanisms are critical for innovations to scale? How should AI and digital tools in public systems be governed? what roles should universities, companies, governments, and social sector actors play next?
Designed as an interactive exchange, this session is for students, researchers, practitioners, innovators, and private-sector partners shaping the future of social impact, we will unpack what’s broken in current models, why promising solutions stall, and how new approaches—blended finance, market-shaping partnerships, institutional reform, and locally led innovation—can unlock scale with integrity.
The Evolving Relationship Between Nonprofits and Government: Past, Present, and Future (RECORDING FROM MARCH 24, 2026)
At a pivotal moment for the nonprofit sector, the Center on Nonprofits and Philanthropy (CNP) at the Urban Institute will host the first in a series of 30th-anniversary convenings, beginning with an exploration of the rapidly evolving relationship between government and nonprofits. Centered on three guiding questions—What forces have shaped that relationship in the past? What is happening now? And what might the relationship look like in the future?—this convening will look at the historical relationship between government and nonprofits, assess current disruptions, and help shape how the field understands and prepares for what lies ahead.
As nonprofits continue to play a critical role in supporting communities, driving economic activity, and demonstrating resilience during a tumultuous period, this gathering offers a rare chance to step back, reflect on the sector’s trajectory, and explore how nonprofits might chart a path forward.
Learn about Proposed New Federal Grant Certification Requirements | AFP
The General Services Administration (GSA) is proposing updates to certifications for all federal financial assistance recipients—aligning requirements with recent executive orders and U.S. Department of Justice guidance on unlawful discrimination. These changes would apply broadly across all grants, cooperative agreements, and other federal funding vehicles. Hear how this change could introduce new compliance and legal exposure risks for both nonprofits and public entities, including civil and criminal penalties. It would also apply to sub-grantees with the onus on the prime awardee to monitor compliance, so state pass-through dollars also would be affected.
Join us on May 4, 2026 at Noon ET for a special educational webinar to learn more about what is being proposed and advocacy actions already taken by AFP and GPA in partnership with national partners. Free online webinar Registration link, co-hosted by Association of Fundraising Professionals (AFP) and Grant Professionals Association (GPA)
