Government Affairs Digest: What Nonprofits Need to Know (Part 9)
March 26, 2025 - This content will be updated as developments unfold.
Latest Developments:
March 17: U.S. District Judge Julie Rubin in Maryland ordered the Trump administration to temporarily reinstate some of the education grants it had nixed as part of its work to end DEI initiatives. These grants, funded under three Congressionally appropriated programs—Supporting Effective Educator Development (SEED) Program, Teacher Quality Partnership (TQP) Program, and Teacher and School Leader Incentive (TSL) Program—were used to support programs that prepare and develop educators.
Read: Judge orders reinstatement of education grants axed by Trump in DEI sweep
March 18: Judge Theodore D. Chuang ruled that Elon Musk and his team likely violated the Constitution by shutting down USAID, infringing on Congress’s authority. He ordered the partial restoration of USAID operations, reinstatement of employee email access, a reoccupation plan for evicted employees, and barred Musk’s team from further involvement in the shutdown.
Read: Maryland judge temporarily blocks DOGE efforts to dismantle USAID - The Washington Post
March 20: United States President Donald Trump signed an executive order that ordered the Secretary of Education to facilitate the closure of the Department of Education. The President cannot fully close the Department without approval from Congress because only the legislature has the discretion to close a cabinet-level department. Student loan administration, including Public Service Loan Forgiveness, is being transferred to the Small Business Administration.
Trump Administration Is Sued Over Push to Dismantle Education Department - The New York Times
SOME GOOD NEWS: Fewer People are Dying from Drug Overdoses, the Mediterranean Monk Seal is Making a Comeback, Lincoln Center Receives a Record-Breaking $50 Million Gift for Contemporary Dance, and more from Vox.
Actions to Take:
Help Expand Nonprofit Financial Commons’ 12 Financial Action Steps for Nonprofits!
Nonprofits must stay financially strong to sustain their missions, and the 12 Financial Action Steps provide a great foundation. But we know there’s always more to consider! What key advisory points would you add to strengthen these steps?
Resources:
List of Withdrawn Federal Funding Opportunities - Resource generated by members of the Grant Professionals Association as a way to track all previously recurring grant opportunities that have disappeared in the last few weeks. It's a crowd-sourced resource, so if you know of opportunities missing from the list, please feel free to add!
Chronicle of Philanthropy Webinar Recording “Nonprofits and the Trump Agenda 3.25.25”
Key Findings:
The overwhelming majority of nonprofit leaders say the current political climate is negatively affecting their organizations.
Nonprofit leaders are seeking more communication from their foundation funders about the implications of the political context but indicate that most of their funders have not yet communicated with them.
Worries about current and future funding levels as well as changing funder priorities are top of mind for nonprofit leaders, who are looking for larger and more unrestricted support in this uncertain time.
Further Reading:
Inside the Federal Funding Freeze - Non Profit News | Nonprofit Quarterly
In a Time of Nonprofit Defunding, Will Foundations Put More Money on the Line?
Facing Federal Defunding, Nonprofits Draft Best and Worst Case Budgets
Pivoting to Private Donors When Government Funding Isn’t There
The Silence of Our Friends- Public Welfare Foundation’s statement and call-in for philanthropic funders' lack of action and silence against the current unprecedented attack on the nonprofit sector.
