Government Affairs Digest: What Nonprofits Need to Know (Part 8)
March 19, 2025 - This content will be updated as developments unfold.
Latest Developments:
March 3: The Trump administration has stalled at least $60 million in funding intended largely for affordable housing developments nationwide, throwing hundreds of projects into a precarious limbo, according to information and documents obtained by The Associated Press.
The move is part of a flurry of funding freezes, staffing cuts and contract cancellations by the Trump administration at the U.S. Department of Housing and Urban Development, changes that have instilled widespread uncertainty in the affordable housing industry. The $60 million is intended to go to small community development nonprofits in small grants. The money is often used as seed funding for affordable housing projects, turning a concept into a viable development and consequently drawing in more public and private investment. Congress chose three nonprofits to distribute the grants, but HUD said in letters that it was canceling contracts with two of the organizations, which together were to distribute the $60 million. That’s pushed millions in funding already promised to small nonprofits, or yet to be awarded, into the twilight zone.
Trump’s Funding Freeze Halts Hundreds of Affordable Housing Projects - TIME
Relevant for: Housing, Community Development, Economic Development
March 12: Biden-appointed National Endowment for the Humanities (NEH) Chair Shelly Lowe was ordered to leave her position “at the direction of President Trump.” NEH General Counsel Michael McDonald will serve as Acting Chair.
Read: Trump pushes out National Endowment for the Humanities chair, official says - The Hill
Relevant for: Arts & Culture, Humanities, Museums, Archives, etc.
March 13: National Council of Nonprofits filed a lawsuit challenging the Trump administration’s unlawful freeze on funding from the congressionally-approved Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law—critical investments that help communities combat climate change, improve infrastructure, and protect public health. The freeze, ordered through President Trump’s “Unleashing American Energy” executive order and implemented by the Office of Management and Budget, Environmental Protection Agency, and the Departments of Agriculture, Energy, and the Interior, has left vital community projects in limbo—hurting public lands, clean energy initiatives, local economies, and communities.
Read: Press Release
Relevant for: Environmental Sustainability, Climate Change, Climate Justice, Clean Energy, Preservation of Public Lands, etc.
March 14: A federal appeals court has given President Donald Trump’s administration the go-ahead to enforce a pair of controversial executive orders that seek to root out diversity, equity and inclusion efforts at federal agencies and government contractors.
The three-member appeals panel — including two judges appointed by Democratic presidents lifted a lower court’s injunction that had put the policy on hold last month. The ruling Friday from the panel of the Richmond, Virginia-based 4th Circuit Court of Appeals is not a final decision on the legality of Trump’s anti-DEI policy. It merely allows the government to administer the policy while litigation continues.
Read: Appeals court allows Trump to reinstate two executive orders targeting DEI - Politico
Relevant for: Any organization with programming related to or incorporating principles of diversity, equity, or inclusion.
March 15: President Donald Trump has signaled the next set of agencies on the chopping block, as his administration looks to cut down the size of the federal government. Trump, in a late Friday executive order, gutted several smaller offices and agencies that serve wide-ranging roles in the government, from addressing homelessness to funding libraries. The order said the agencies and offices will have all of their federal grants reviewed and they will be “eliminated to the maximum extent consistent with applicable law.” On the list is the U.S. Agency for Global Media, which oversees Voice of America and Radio Free Asia, and the Institute of Museum and Library Services.
Read: Trump’s next agency cuts include US-backed global media, library and museum grants - Politico
Relevant for: Museums, Archives, Libraries, Humanities, Arts, Media
March 19: SOME POSITIVE NEWS: This week, a federal judge issued a temporary restraining order blocking the Environmental Protection Agency (EPA) from reclaiming climate-related grants from three environmental organizations. The EPA had attempted to terminate these grant agreements, citing concerns of fraud and abuse. However, the judge found these claims to be vague and unsupported by clear evidence, and noted that without the order, the organizations would face imminent harm, including the inability to pay employees and continue their projects. This decision allows the nonprofits to maintain their funding and continue their environmental initiatives.
Read: US judge blocks Trump's EPA from clawing back climate grants - Reuters
Relevant for: Organizations dealing with climate-related grants
Resources:
National Council of Nonprofits Webinar held 3/17/25: The Legal Landscape and Path Ahead for Nonprofits and Philanthropy (1:02:23) recording and slides.
Chronicle of Philanthropy Webinar 3/25 at 2pm: Nonprofits and the Trump Agenda Webinar, Register Here
Breaking News Updates Impacting the Arts & Culture | Arts ActionFund
