Government Affairs Digest: What Nonprofits Need to Know (Part 12)

April 16, 2025 - This content will be updated as developments unfold.

Latest Developments:

April 16: Billionaire Elon Musk's U.S. Department of Government Efficiency (DOGE) attempted to place a team with independent nonprofit Vera Institute of Justice, the nonprofit said, marking a further expansion of the cost-cutting agency's move to exercise control over non-governmental groups. It was not immediately clear how many other independent groups, such as Vera Institute, DOGE has contacted, but such a step would mark an increase in its influence beyond the government to private entities that received federal money.*

Read: DOGE attempted to assign team to US nonprofit group Vera Institute of Justice - Reuters

Relevant for: Any nonprofit receiving congressionally allocated funding

* This is a developing story that Purpose Possible will be monitoring


April 15
: Tuesday, a Judge granted the National Council of Nonprofits and co-plaintiffs’ motion for a preliminary nationwide injunction preventing the Trump administration from freezing, haunting, or broadly pausing funding awarded under the Inflation Reduction Act or the Infrastructure Investment and Jobs Act. The judge further orders the administration to take immediate steps to resume the processing, disbursement, and payment of already-awarded funding appropriated under these laws, and to release awarded funds.

Read: From Diane Yentil, President & CEO of National Council of Nonprofits via LinkedIn

Relevant for: Any nonprofit, municipal body, or vendor providing services (such as construction, design, planning) to a municipality with grants awarded under these laws.

April 15: Staffers at the U.S. DOGE Service have taken control of Grants.gov, the website that disseminates information about federal grants and provides a mechanism for applying for the grants. According to unnamed sources referenced by The Washington Post, DOGE employees will now have the power to review and make decisions regarding the awarding of federal grants. The moves are part of a larger effort to limit resources for activities not endorsed by the Trump White House, according to the Post.

Grants.gov “provides a centralized location for grant seekers to find and apply for federal funding opportunities. Today, the Grants.gov system houses information on over 1,000 grant programs,” according to the website. These programs award more than $500 billion annually, per the website. The Grants.gov program management office was established in 2002, per the website.The site itself did not contain any information — or even indication — regarding the reported DOGE takeover. There were no indications of it within the unit’s X (formerly Twitter) feed. As of Saturday afternoon, the latest post on the X feed was from March 25.

Read: DOGE Takes Over Federal Grants Website - The Nonprofit Times

DOGE takes over federal grants website, wresting control of billions - Washington Post

Relevant for: Any nonprofit or for-profit that applies for funding through Grants.gov

April 14: The Trump administration cancelled $2 billion in funding to Harvard University after the school declined to comply with its demands. Those demands included overhauling its hiring practices and reporting international students who break campus rules. Harvard’s response, which called the Trump administration’s demands illegal, marked a major shift in tone for the nation’s most influential school, which has been criticized in recent weeks for capitulating to Trump administration pressure.

Since taking office in January, the Trump administration has aggressively targeted universities, saying it is investigating dozens of schools as it moves to eradicate diversity efforts and what it says is rampant antisemitism on campus. Officials have suspended hundreds of millions of dollars in federal funds for research at universities across the country.

Read: Trump Administration Will Freeze $2 Billion After Harvard Refuses Demands (New York Times - Unlocked)

Relevant For: Higher Education, Education, Democracy, First Amendment Rights

Resource: Chronicle of Higher Education Webinar: Understanding the New Legal Landscape: Navigating Uncertainty Under Trump ($89 Fee)

Some Good News:

April 11: The U.S. Department of Housing and Urban Development (HUD) has reinstated both Enterprise and LISC’s Section 4 Capacity Building for Community Development and Affordable Housing Program funding following a successful appeal that included petitions and testimonials from nonprofit partners across the country. This is a much-needed outcome for collaborative partners nationwide to advance housing and community development initiatives.

Read: LISC’s Section 4 Funding Reinstated, HUD Reaffirms Section 4 Partnership with Enterprise to Reduce Housing Costs

Relevant For: Housing, Economic Development, Capacity Building

Resources:


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