Top of the News

Multiple lawsuits are underway to protect charitable nonprofits from blocks to federal funding they have earned, and to challenge attacks on diversity, equity, and inclusion initiatives. The National Council of Nonprofits is hosting this informational webinar to explain the current legal landscape and to highlight how philanthropic leaders are acting with urgency in supporting nonprofits during this difficult period. We’ll conclude with actionable steps nonprofits and all who support the charitable sector can take.

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Federal News

Over the weekend, House Republicans released a stopgap bill to fund the government through Sept. 30 and avoid a government shutdown scheduled to start this Friday, Mar. 14 at midnight. The “clean” continuing resolution (CR) fully funds government services, maintains operations at current levels, and provides funding for veterans, firefighters, social security, Medicare, Medicaid, and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).

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Second Judge Blocks Funding Freeze: A federal judge in Rhode Island issued a preliminary injunction blocking the federal funding freeze, brought by 23 state attorneys general and the District of Columbia. The order is broad and addresses separation of powers, appropriations and spending, the Impoundment Act, and other constitutional and federal claims as well as outlined many examples of harms caused by the freeze.

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To help cut through the noise and determine what do, check out these resources on actions impacting nonprofit organizations:

• EO Proposing Restrictions to PSLF: President Trump signed an executive order directing the Department of Education to propose changes to the Public Service Loan Forgiveness (PSLF) program to exclude certain nonprofit organizations “whose activities have a substantial illegal purpose," including “terrorism”, “child abuse,” “illegal discrimination,” or “disorderly conduct.”
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• Census Advisory Committees Eliminated: The Department of Commerce terminated three census advisory committees created to allow for more expert public input.
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• Bond Request: President Trump signed a memorandum requiring all federal agencies to request plaintiffs seeking an injunction to post a bond equal to the federal government’s potential costs and damages. Prior to this year there was little to no precedent for the federal government to request bonds in these types of cases. 
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• Proposed Changes to Amicus Brief Disclosure Requirements: The policymaking body for federal courts proposed changes to increase the disclosure requirements for parties filing "amicus curiae" briefs in federal litigation for persons that contribute more than $100, with exceptions.
  [Read more]

Fill out and share this one-of-a-kind survey on the nonprofit sector's health and challenges across a variety of subsectors and geographies. Data are used to advocate for the policies needed to secure nonprofits’ long-term resilience.

State & Local News

Several states are considering budget proposals involving charitable nonprofits.

• California: A bill would establish a $100 million appropriation for the Small Business Recovery Fund to provide competitive grants between $2,500 to $100,000 to small businesses and nonprofits directly impacted by a state of emergency.
  
  
• Missouri: Similar bills (H.B. 134/ S.B. 173) seek to establish the Missouri Task Force on Nonprofit Safety and Security to study the security needs of nonprofits that are at an elevated risk of terrorist attacks.
  
  
• Tennessee: A newly enacted law (S.B. 6003) establishes the Hurricane Helene interest payment fund to pay local governments’ interest costs for up to 3 years on money borrowed to pay eligible disaster recovery costs related to Hurricane Helene.

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State and local governments continue to consider applying taxes, fees, and payments in lieu of taxes (PILOTs) on charitable nonprofits to raise revenues.

• Property Tax: In late February, the Indiana Board of Tax Review determined that a religious organization’s property was wrongly denied an exemption. The building was used for day care and educational programs, and other charitable activities.
  
  
• Transaction Fees: Pending legislation in Oklahoma would prohibit interchange transaction fees and network fees for transactions for donations to 501(c)(3) charitable nonprofits.
  
  
• Property: Despite vowing to challenge nonprofit property tax exemption, the City of Pittsburgh, Pennsylvania has won few challenges to large nonprofits, according to new findings. 

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Read the full newsletter for additional quotes, research, Numbers in the News, and upcoming advocacy events to put the news in greater context and help you frame the debate.

Nonprofit Library

On executive actions

• NEW: Frequently Asked Questions on Executive Actions Impacting Nonprofits
• UPDATED: Executive Orders Affecting Charitable Nonprofits Chart
• UPDATED: The Impacts of the Recent Executive Orders on Nonprofits
• Judge orders Trump administration to speed payment of USAID and State Dept. debts, Ellen Knickmeyer and Michael Kunzelman, Associated Press, Mar. 6, 2025.

On nonprofit leadership

• Listen to Envision Radio Episode 162 With Guest Mariane Doyle (1:03:54), United Way of Greater Charlottesville, Mar. 5, 2025.

On government grants and contracts and the funding freeze

• Opinion: Community nonprofits are in crisis; CT must increase funding, CT Insider, Mar. 7, 2025.
• Testimony before the Michigan Senate Oversight Committee, Michigan Nonprofit Association, Mar. 5, 2025.
• Testimony before the House Education & Public Works Committee, Together SC, Mar. 4, 2025.

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