Government Affairs Digest: What Nonprofits Need to Know (Part 11)

April 9, 2025 - This content will be updated as developments unfold.

Latest Developments:

April 4: A lawsuit was filed by 21 State Attorneys General to stop President Trump's Executive Order #14238 from dismantling 3 federal agencies that provide services and funding for museums and public libraries, mediation services, and minority business development. Specifically, the Institute of Museum and Library Services was forced to place 85% of its staff on administrative leave and cancel all open grants on 3/31/25. This lawsuit is led by the Attorneys General of New York, Hawaii, and Rhode Island and are joined by Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Vermont, Washington state, and Wisconsin.

The lawsuit argues that the executive order violates the Constitution and the Administrative Procedure Act by eliminating the programs of agencies without any regard for the laws and regulations that govern each source of federal funding. The coalition argues that the President cannot decide unilaterally to override laws governing federal spending, and that this executive order unconstitutionally overrides Congress’ power to decide how federal funds are spent.

Read: Read more about this update from Americans for the Arts

A Message to Our Friends and Supporters: Take Action to Save the NEH - Georgia Humanities

Relevant for: Libraries, Museums, Historians, Academia, Minority Business Development, Mediation Services

April 1: The conservative American Alliance for Equal Rights (AAER) formally filed complaints with the Internal Revenue Service (IRS) to open investigations regarding three prominent tax-exempt charitable organizations—the Gates Foundation, Lagrant Foundation, and Creative Capital Foundation—"intentionally discriminating against white people." The complaints request the IRS revoke their tax-exempt 501(c)(3) charitable status.

Read: More about this update from Americans for the Arts (Press Release)

Relevant for: Public Health, Mental Health, Addiction Services

Georgia Legislative Session Report:

The 2025 Georgia Legislative Session wrapped on Friday, April 4, as the Georgia Senate decided to adjourn earlier than previous sessions. As a result, and even with 260 bills and numerous resolutions being passed, the 2025 Session will be remembered by some as much for the legislation that did not reach Governor Brian Kemp’s desk.

Among the bills that will proceed to Governor Kemp’s desk include many that address hot-button, cultural issues that impact the nonprofit community:

• A bill to ban transgender girls from playing girls’ high school sports.

• A bill banning gender affirming care for state prisoners.

• Legislation to curb civil litigation.

• A long debated religious freedom bill.

• A school safety bill.

Bills that impact the nonprofit community that did not pass during the 2025 Session include:

• Red Tape Rollback Bill - Georgia’s answer to the federal DOGE cuts.

• A ban on coverage of transgender-related care for employees on the state health plan.

• An anti-DEI bill that would strip state funding from state colleges and universities that promote diversity.

• A bill that addresses housing costs.

The Georgia Legislature also passed the 2026 budget, House Bill 68 - the only legislative piece that they are required to pass yearly. For some highlights on the 2026 budget, please read the Georgia Budget and Policy Institute’s Legislative Wrap-up.

For additional information on bills that did and did not pass in the 2025 Georgia Legislative Session, please visit WABE’s 2025 Gold Dome Tracker & the AJC’s Georgia Legislative Navigator.

As a final reminder, please note that the Georgia General Assembly operates on a two-year cycle, meaning the legislative session is a non-consecutive 40-day period beginning in January, and bills that don't pass during the first year can be considered again the following year. The 2025 Legislative Session was the first year of the current two-year cycle.

SOME GOOD NEWS:

• Growing and Sharing Seeds Can Boost Mental Health - Positive.News

• Massive sea turtle back where it belongs after Florida photographer, rescue group step up - Today

• Follow Bird Migration 2025 with BirdCast

Actions to Take:

• 4/24/25 Webinar: The Backlash to Diversity, Equity & Inclusion (DEI): How Justice-Committed Organizations Can Respond Now (NPQ)

• Help the National Council of Nonprofits tell the story of the true value and tremendous positive impacts of nonprofits in communities every day by sharing your nonprofit's story here

• For funders:

  • Philanthropy’s solidarity with those impacted by aid cuts: A joint Call to Action (WINGS)

  • Meet the Moment: A Call to Action for Philanthropy in 2025 (and Beyond) (Trust-Based Philanthropy Project,Grantmakers for Effective Organizations, and NCFP)

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Resources:

• The Lawyers for Good Fund Protection Clinic offers legal assistance to organizations. Their attorneys provide generalized best practices guidance and customized templates to build your administrative record. Pro bono 1:1 consultations are available to EPA, USDA, and DOE grantees.

• Webinar recording: The Legal Landscape and Path Ahead for Nonprofits and Philanthropy (National Council of Nonprofits)

• Executive Actions and their Impacts on the Arts: A Comprehensive Guide (Americans for the Arts)

Further Reading:

• What’s at Stake with Threatened Federal Cuts to CDFIs? (NPQ)

• The Case for Solidarity Between Nonprofit and Federal Workers (NPQ)

• The Legal Landscape Around DEI Is Shifting. Your Messaging Should, Too. (Harvard Business Review)

• What Can Philanthropy Do as Trump Pushes Legal Boundaries on Immigration? (Inside Philanthropy)

• Recession Ahead? How a Tariff-Induced Downturn Might Change Giving (Chronicle of Philanthropy)

• Leading through Uncertainty: Three Questions for Funders (FSG)