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Senate Votes to End Government Shutdown
Early this morning, the Senate voted to fund most of the Department of Homesland Security, including TSA, the Coast Guard, and FEMA, but not Immigation and Customs Enforcement (ICE) and Customs and Border Protection (CPB). The current shutdown has lasted 42 days, and DHS employees that are not ICE and CPB have not been paid since mid-March (ICE and CPB employees have been paid through the One Big Beautiful Bill Act funding). The bill will now need to be passed by the House. If it passes the House, President Trump is expected to sign it. The Senate is currently in a two week recess, which limits the House's options, besides passing this bill. This may make it more likely that we will see a second tax reconciliation bill this year,.
Executive Order on Fraud
President Trump signed an executive order (EO) on March 16, titled "Establishing The Task Force to Eliminate Fraud." The EO claims without evidence that “illegal aliens, criminals, foreign gangs, bureaucrats, State and local officials, non-governmental organizations, and ineligible providers exploit” federal safety net programs, resulting in widespread fraud, waste, and abuse.
The EO creates a federal taskforce to “examine and recommend, as appropriate, any ways that Federal funds may be withheld from jurisdictions that do not have adequate anti-fraud requirements.” The task force will coordinate measures to improve eligibility verification, detect high-risk fraud trends, and disrupt and dismantle alleged fraud networks. The EO directs task force agencies to identify fraud-vulnerable transactions within 30 days, propose corrective measures within 60 days, and submit full implementation plans within 90 days.
New Investigations into Nonprofits
The Federal Bureau of Investigations (FBI) and Internal Revenue Service (IRS) are forming a new initiative to investigate nonprofits over suspected possible links to domestic terrorism. This effort follows a national security presidential memorandum directing the U.S. Department of Justice (DOJ) to “investigate, prosecute, and disrupt entities and individuals engaged in acts of political violence.” The president memorandum also directed the IRS to “take action ensure no tax-exempt entities are directly or indirectly financing political violence or domestic terrorism.”
Proposed Changes Harming Federal Grantees and Their Communities: Last Chance to Take Action
The General Services Administration (GSA) has proposed changes to the System for Award Management (SAM). The GSA is proposing to require all federal grantees, including nonprofits, to sign new certifications as a prerequisite to apply for or receive federal financial assistance. For more information, read the proposed changes and supporting materials.
If implemented, the proposed changes would directly impact nonprofits, state and local governments, tribes, and other entities that apply for or receive federal financial assistance, including discretionary, mandatory, block, and formula grants, cooperative agreements, loans, insurance, and direct appropriations.
Under the proposed changes, applicants and recipients of federal financial assistance would be required to sign new certifications under penalty of criminal and civil law. These certifications align with President Trump’s executive order and the U.S. Department of Justice guidance, which misrepresents “illegal” diversity, equity, and inclusion (DEI). The revised certification also includes provisions on undocumented immigration and anti-terrorism.
The proposed changes are vague and complex, making it nearly impossible for nonprofits to know whether they are in compliance. Moreover, it exposes nonprofits to possible legal harassment by the Administration. Nonprofits wrongfully accused would have to spend an enormous amount of staff time and resources defending themselves in audits, investigations, and court. With the new certifications, nonprofits may decide that it is not worth the risk and will forgo applying for federal funds altogether, leading to service disruptions. Ultimately, the proposed rule will harm the people and communities that rely on nonprofit organizations and the essential services they provide.
ACTION ALERT - LAST THREE DAYS TO PARTICIPATE: The public has until March 30 to submit public comments in opposition to the proposal. The National Council of Nonprofits has created several tools to help you make your voice heard.
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Sign a national letter led by the National Council of Nonprofits and Legal Defense Fund opposing the proposed changes. So far, there are more than 1,000 signers - help us get to 1,500!
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Submit a comment letter using NCN’s comment guide, which includes talking points, instructions, and more information.
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Email your members of Congress and urge them to help protect nonprofit grantees and the communities they serve.
New Resource: Advocating for Federal Spending: A Practical Guide for Nonprofits
The National Council of Nonprofits has published Advocating for Federal Spending: A Practical Guide for Nonprofits. This guide is designed to help nonprofits understand how to effectively advocate for the federal resources that matter most to the people and communities they serve. It includes key information on how Congress enacts federal funding, where there are opportunities for advocacy, and more. Let us know if this resource is helpful to you!
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