Gov. Affairs | Issue 32 | August 20, 2026
Published August 20, 2026 - This content will be updated as developments unfold.
Good News:
Appeals Court Affirms Order Against Trump-Vance Administration Freeze on Billions in Congressionally-Approved Infrastructure and Environmental Funding - Democracy Forward (August 7, 2026)
The ruling reinforces the constitutional separation of powers, affirming that Congress holds the power of the purse in setting budgets and approving funding, and that executive administrations cannot unilaterally freeze those allocated funds.The court's decision ensures that previously approved federal grants and investments can continue to flow to local community programs, environmental initiatives, public health efforts, and infrastructure projects nationwide.
Senate Votes to Delay OMB Regulation Overhauling Federal Grantmaking - National Council of Nonprofits Newsletter (August, 10, 2026)
The U.S. Senate voted 90 to 6 to approve a continuing resolution (CR) to keep the federal government open and funded through December 11. The CR includes a key bipartisan provision temporarily blocking the U.S. Office of Management and Budget (OMB) from finalizing proposed sweeping changes to overhaul federal grantmaking. The CR must now head to the U.S. House of Representatives. If enacted, the temporary delay would be a significant win for nonprofits, state, local, and Tribal governments, and other grantees, and the communities they serve. The administration had previously stated plans to finalize the regulation before the start of the new fiscal year on October 1.
The proposed rule, if implemented, would create significant financial risk and instability for federal grantees, including nonprofits, making it more difficult to provide vital services to communities. Grantees would be faced with unpredictable financial, legal, and reputational risks that increase the costs of accepting federal awards. Many effective and qualified grantees may be unable to accept those risks. This could lead to disruptions to essential services in communities and states nationwide. NCN submitted comments and led a national letter signed by nearly 2,000 organizations to urge OMB to withdraw the proposed rule. Nearly 500,000 comments were submitted. THANK YOU!!!!!
Keep the Action Going!
August recess is a great time to advocate to Members of Congress while they are home in your district. Between now and September 14, nonprofits can:
Call or Email your Members of Congress. Contact both Republicans and Democrats and urge them to take action now to block the proposed changes and protect our communities.
Schedule In-District Meetings with your Members of Congress. Use this time to meet with your delegation or attend their public events to ask them to stop the proposed changes. Use NCN's August Recess checklist to learn more.
Publish an Op-Ed or Letter-to-the-Editor in Your Local Newspaper. Help raise awareness about how this harmful proposal will directly harm the seniors, families, and individuals in your community.
For more details, see NCN’s summary of the proposal and chart of key provisions, or read the proposal in its entirety.
Not So Good News:
Trump Administration Admits Canceling Grants to States That Did Not Vote for Him - New York Times (unlocked)
The Trump administration acknowledged in federal court filings that it canceled more than $7.5 billion in federal clean energy grants based solely on political motivations. The concessions came in a lawsuit filed by University of California researchers challenging the termination of their awards.
According to the filings, the Department of Energy initially submitted over 600 grant proposals nationwide to the Office of Management and Budget for evaluation. However, the administration ultimately canceled 284 grants that were almost exclusively located in blue states that supported Kamala Harris in the 2024 presidential election. Energy Department lawyers conceded that these specific cancellations were not grounded in programmatic, technical, or cost-reduction factors, contradicting earlier administration statements that the decisions were made purely on economic merit.
Trump administration moves to deregulate Head Start, opening door for sweeping change - NPR
The Trump administration has proposed to deregulate Head Start by eliminating federal standards and shifting regulatory authority over student-teacher ratios, background checks, and transportation back to individual states. Administration officials state that capping administrative spending at 5 percent will save roughly $2.2 billion and allow the program to add up to 200,000 new spots for children. The proposal also includes new provisions requiring daily physical activity, instructing centers to minimize multilingual services in favor of English language instruction, and introducing guidelines around family structure and nutrition. While conservative critics support moving away from federal mandates, early childhood advocates express concern that delegating standard setting to states will compromise quality, reduce support for children with disabilities, and create wide disparities in care depending on geography.
CALL TO ACTION: The proposed regulatory changes are currently undergoing a mandatory 60-day public comment period before any finalized implementation. Click to submit your comment!
Read More:
Civil Rights and Disability Organizations’ Joint Statement in Opposition to Administration Efforts to Dismantle Head Start - National Center for Learning Disabilities - National Center for Learning Disabilities
A joint statement from civil rights and disability organizations strongly opposes the Trump administration's proposed changes to Head Start, arguing that stripping away federal quality standards will effectively dismantle the program. The coalition contends that removing mandates for small class sizes, trained teachers, language support, and routine medical or developmental screenings will lead to lower-quality, unequal services across regions. They warn that the proposal could allow centers to turn away children with disabilities, complicate enrollment for unhoused families, and roll back prohibitions on practices like expulsion or corporal punishment.
Head Start regulation cuts could impact over 350 Georgia centers - Georgia Recorder
The Department of Health and Human Services has proposed to roll back over 1,400 federal regulations governing Head Start, the early education program for low-income families. Federal officials argue that stripping away bureaucratic requirements like student-to-teacher ratios and certain language guidelines will save roughly $2.2 billion and allow the program to expand access to hundreds of thousands of additional children. However, early education advocates and program leaders in Georgia express concern that relaxing these standards could erode program quality and reduce accountability, potentially affecting more than 23,000 children across the state's 350 Head Start locations.
Update on HUD FY2026 CoC NOFO:
On August 7, 2026, a federal court set aside the FY2026 NOFO in its entirety, finding that HUD did not follow the required public notice and comment process before issuing the NOFO. The court did not permanently prevent HUD from issuing a future NOFO with similar provisions, but the current FY2026 NOFO cannot move forward as issued.
You can learn more by reviewing the court order and by reading a statement from the National Alliance to End Homelessness here:
As you know, last week the District Court of Rhode Island ruled in our favor to vacate the 2026 CoC Program NOFO. I’m reaching out today to inform you that HUD has appealed this decision and asked for an emergency stay of the ruling as the appeal proceeds. The district court has denied that motion; we anticipate HUD will file a similar motion in the appeals court soon (HUD’s motion can be found here).
We understand that this is disappointing news for many of you who would like to have this matter resolved. Please know that our legal team was anticipating this as a potential outcome, and that we are actively working with them on next steps during the appeals process.
The Alliance and our co-plaintiffs firmly believe that our arguments remain strong – we’ll keep you all appraised of the ongoing developments in the appeal process.
In the meantime, we want to underscore that it is HUD’s sole responsibility to issue a lawful NOFO, and to get granted funds out the door to communities in a timely manner. This situation is a consequence of their repeated failure to meet that bar.
Thank you all for your continued effort and flexibility throughout this challenging process. We know how difficult this work is during the best of times, and how much harder HUD’s decisions have made it in the past year.
Please know how much we appreciate you.
Ann Oliva
Chief Executive Officer
National Alliance to End Homelessness
Resources:
Speaking with Candidates and Hosting Events: What to Know- Independent Sector
Guidance to help nonprofits talk to political candidates, comment publicly on campaign trail issues, host candidates at events, and educate candidates on our sector's contributions — all while staying nonpartisan.
