Government Affairs Digest: What Nonprofits Need to Know (Part 6)
March 5, 2025 - This content will be updated as developments unfold.
Latest Developments:
March 2: National Council of Nonprofits (NCN) filed a NEW motion and declaration in our case of National Council of Nonprofits v OMB (Office of Management & Budget). NCN is asking the judge to clarify that Continuum of Care (CoC) grants that have already been awarded are covered under the court’s Preliminary Injunction preventing the administration from implementing broad federal funding freezes.
Background: In late January, HUD awarded $3.6B in CoC grants to 7,000 grantees providing the full continuum of outreach, shelter, services, housing to people experiencing homelessness. The funding hasn’t been disbursed and the delay is causing concern - soon, it may cause service disruptions or closures.
Read: Diane Yentel, President & CEO National Council of Nonrofits (LinkedIN)
Relevant for: Housing, Affordable Housing, Homelessness, Supportive Housing Organizations
March 3: A divided Supreme Court on Wednesday turned down a request by the Trump administration to lift an order by a federal judge in Washington, D.C., that had directed the State Department and the U.S. Agency for International Development to pay nearly $2 billion in foreign-aid reimbursements for work that has already been done.
In a brief unsigned opinion, the court noted that the Feb. 26 deadline for the government to make the payments had already passed. It instructed U.S. District Judge Amir Ali to “clarify what obligations the Government must fulfill to ensure compliance” with the temporary restraining order that Ali has entered in the case, paying attention to how feasible it is for the government to comply with those timelines.
Ali is expected to hold a hearing on the aid groups’ motion for a preliminary injunction – which, if granted, would suspend the freeze on foreign-assistance funding going forward – on Thursday, March 6. This means that the dispute could return to the Supreme Court as an emergency appeal again soon.
Read: Supreme Court denies Trump request to block $2 billion foreign-aid payment - SCOTUS Blog
Relevant for: Any organization with programs or partners receiving USAID funding.
Actions to Take:
Review the tools and recommendations available in our earlier Government Affairs Digests and consider scheduling a Scenario Planning Session with Purpose Possible.
Further Reading:
What does ED’s New DEI Guidance Really Mean? - Inside Higher Ed
Trump Moves Cause Widespread Fear Among Nonprofits, Survey Finds - Non Profit News | Nonprofit Quarterly
Challenging Times: How U.S. Nonprofit Leaders are Experiencing the Political Context - Blog Post | The Center for Effective Philanthropy
