Federal News

On the last possible day, Congress passed a Continuing Resolution (CR) to avoid a government shutdown that was slated to begin at midnight on March 14. President Trump quickly signed the CR, which funds the government through Sept. 30. Funding levels remain mostly the same, with exceptions for an increase in military spending and elimination of earmarks. Congress has failed to pass a full budget for more than a year, creating challenges for many programs requiring inflationary increases just to continue services at the same level.

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NCN Joins Second Lawsuit to Restore Infrastructure and Investment Funds: On March 13, Woonasquatucket River Watershed Council, National Council of Nonprofits, Eastern Rhode Island Conservation District and Green Infrastructure Center filed a lawsuit challenging the Administration’s freeze on funding from the Inflation Reduction Act and the Infrastructure Investment and Jobs Act, also known also as the Bipartisan Infrastructure Law. The freeze, ordered through the Unleashing American Energy executive order, left vital community projects in limbo.

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• Income-Driven Repayment Plan (IDR) Litigation: The American Federation of Teachers filed a lawsuit against the U.S. Department of Education (DoEd) in response to the DoEd’s removal of online IDR applications, which affects Public Service Loan Forgiveness. Related, the president signed an executive order to dismantle DoEd and moved administration of student loans under the purview of the Small Business Administration.
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• Food Assistance Programs Frozen: Recently, the Administration has frozen several food assistance programs run by nonprofits, including more than $500 million under the Emergency Food Assistance Program and $130 million under the Emergency Food and Shelter Program, despite Congressional appropriations for this year.
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• Higher Ed Disclosures: Earlier this month, Reps. Baumgartner (R-WI) and Messmer (R-IN) introduced the Deterrent Act (H.R. 1048) to require higher education institutions to create searchable public databases disclosing certain large foreign gifts and contracts.
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• Executive Order Eliminating Independent Agencies: President Trump signed an executive order Continuing the Reduction of the Federal Bureaucracy to eliminate non-statutory components and functions of certain federal independent agencies, including the Institute of Museum and Library Services (IMLS), the United States Interagency Council on Homelessness, the Community Development Financial Institutions Fund, and the Minority Business Development Agency.
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State & Local News

Recently governors have vetoed, and lawmakers have failed to move, several bills attempting to restrict diversity, equity, and inclusion within their states.

• Kentucky: Last week, Governor Beshear vetoed legislation that would have prohibited public universities from “expending any resources on diversity, equity, and inclusion,” among other DEI initiatives. The legislature is expected to override the veto.
  
  
• Montana: The Montana Individual Freedom Act, which would have amended the definition of DEI and allowed investigations of violations, is not expected to move further this session.
  
  
• Wyoming: Governor Gordon vetoed a bill that would have amended the state’s definition of DEI stating, “Without clear guidance, institutions will struggle to interpret and comply with the law, potentially leading to unnecessary legal challenges and disruptions to academic programming.”

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Lawmakers are advancing measures to change nonprofit fundraising, disclosure, and oversight.

• New Hampshire: Two bills affecting fundraising via historic horse racing in the state failed this session.
  
  
• North Carolina: Recently introduced companion bills would prohibit the Attorney General from participating in litigation challenging a presidential Executive Order.
  
  
• Rhode Island: A concerning bill that would have required nonprofits to submit and post employee salaries as a condition for requesting state funds was withdrawn before being heard in committee.
  
  
• Utah: Lawmakers passed a bill authorizing the attorney general to bring action or dissolve a nonprofit that has been convicted for an offense pertaining to the prevention of “unauthorized landing of aliens or human smuggling.” The bill now awaits the governor’s signature.

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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

• How uncertain federal funds impact local governments and nonprofits (24:46), Madilyn Rose, Alaska Public Media, Mar. 7, 2025, featuring Laurie Wolf, President & CEO of Foraker Group.
• Fed funding: more questions than answers, Chris Flood, Cape Gazette, Mar. 11, 2025.
• 'We cannot lose that': Multiple Greater Cincinnati museums impacted by federal cuts, (1:50), Paige Barnes, WKRC, Mar. 18, 2025.
• Nevada’s mental health nonprofits warn of ‘devastating’ potential federal funding cuts, Eric Neugeboren, The Nevada Independent, Mar. 18, 2025.

On nonprofit impact

• Opinion | Montana's nonprofits: The backbone of our communities, Adam Jespersen, Executive Director of the Montana Nonprofit Association, Billings Gazette, Mar. 12, 2025.
• Why supporting Idaho’s nonprofit sector is a smart investment, Idaho Business Review, Mar. 14, 2025, featuring Kevin Bailey, Vice President of Impact of the Idaho Nonprofit Center and member of NCN’s Board of Directors.
• Massachusetts nonprofits brace for impact of proposed cap on charitable deductions, Maren Halpin, Boston Globe, Mar. 16, 2025.
• Empowering Our Community Through Legislative Education, Mariane Doyle, Executive Director of the Center for Nonprofit Excellence, Virginia Funders Network, Mar. 18, 2025.
• Biennial Report, Nonprofit Vote, 2023-2024.

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