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January 30, 2025

Dear Michael,

The first month of 2025 ushered in a host of advocacy opportunities and challenges for Arizona nonprofits and philanthropy, and AZ Impact for Good looks forward to empowering our members to advance public policy at the state and national levels. Topping the list of challenges facing our sector is navigating the uncertainty and potentially devastating effects of the White House Office of Management and Budget’s Jan. 27 memorandum announcing a freeze on federal grants and contracts in the wake of President Trump’s Executive Orders issued last week. See stories below for the latest information we have about this still-developing situation.

Through our advocacy at the state Capitol and our partnerships with the National Council of Nonprofits and United Philanthropy Forum, we aim to empower and amplify the voices of vital organizations Arizonans depend on.

The First Regular Session of the 57^th Arizona Legislature began on Jan. 13 with Gov. Katie Hobbs’ third State of the State address. The governor outlined a range of policy priorities to deliver on what she termed the “Arizona Promise.” The speech previewed the Jan. 17 release of Hobbs’ $17.7 billion budget recommendation for fiscal year 2026 that focuses on:

Housing & Homelessness – Gov. Hobbs proposes extending the Low-Income Housing Tax Credit and funding to address veterans’ homelessness, among other recommendations.
Education – The governor asks lawmakers to extend Proposition 123, the 2016 voter-enacted measure using State Land Trust funds for education that expires in June. She also proposes income caps and other reforms to curb the costs of Empowerment Scholarship Accounts.
Border Security – Gov. Hobbs requests funds to beef up security at the border and reduce the flow of fentanyl into Arizona.
Child Care – The governor proposes significant new investments to help families with child care costs, as well as a child care corporate tax credit.
Water – Gov. Hobbs wants funding for the newly created Colorado River Litigation Fund and investments in wildfire suppression efforts, among other proposals.

Lawmakers have their own ideas about how to address these issues and more, and have so far introduced more than 1,000 bills, resolutions and memorials in the first few weeks of the session. Stay tuned for more information on how these measures may affect your organization and look for ways to engage with policymakers to advance your mission.

AZ Impact for Good will seek opportunities to work with Gov. Hobbs and lawmakers on public policy that contributes to a sound economy, promotes economic well-being for all residents, protects vulnerable populations, preserves our unique natural environment, and improves Arizonans’ quality of life.

Questions? Email Chief Public Policy Officer Laurie Liles at lauriel@azimpactforgood.org.

-Your Advocates at AZ Impact for Good

Nonprofit Group’s Lawsuit Remains Active, Despite OMB Memo Withdrawal

Tell Us How the White House Pause on Federal Grants and Contracting Will Impact Your Organization

Lawsuits against the White House remain active, despite the Office of Management and Budget’s recission of its Jan. 27 directive to all federal agency directors to pause all federal grants and contracting effective Jan. 28, 2025 at 5 p.m. Eastern.

A federal judge on Tuesday temporarily blocked the pause from taking effect. A coalition of organizations including the National Council of Nonprofits earlier in the day filed a Motion for Temporary Restraining Order in the U.S. District Court for the District of Columbia to block the White House Office of Management and Budget from pausing all agency grants and loans. The administrative stay pauses the freeze until Monday when a hearing is tentatively scheduled.

In a statement reacting to the OMB recission, National Council of Nonprofits President and CEO Diane Yentel said, “We are glad that this memo has been rescinded. The chaos unleashed by the uncertainty and lack of adequate notice yesterday should never have happened. Nonprofits are vital partners for government, and payment for the services they provide should never have been in question.”

“Right now, we will celebrate this victory for nonprofits and the people they serve across the country. But we will remain vigilant for any further actions that harm nonprofits’ ability to serve their communities,” Yentel said.

A federal judge was expected to rule as early as today in a separate lawsuit filed by a group of state attorneys general also seeking to block the federal funding freeze.

To help get a better sense of the real-world effects of the earlier-announced Executive Orders or the new freeze in federal funding, the National Council of Nonprofits set up a form on their website for nonprofits to share the effects on their missions and the people they serve. If your nonprofit is affected by either, please fill out the brief form and share that form with any other nonprofits you know.

In addition, please fill out AZ Impact for Good’s surveys on the impact of:

White House OMB Pause on Federal Grants and Contracting

President Trump’s Executive Orders issued last week

AZ Impact for Good will continue to share additional information as it becomes available. Thank you in advance for supporting our advocacy on your behalf.

Complete Survey on Federal Grants and Contracting Pause

Complete Survey on Executive Orders

Executive Orders Affecting Charitable Nonprofits

President Trump became the 47^th President of the United States on Jan. 20. Since then, he has signed dozens of Executive Orders (EOs) affecting a broad range of issues, including diversity, equity and inclusion programs; government grants and contracts; civic engagement; immigration; and certain nonprofit subsectors. Some federal agencies are implementing the orders while other EOs do not take effect immediately. Some of the orders are likely to be held up by, and potentially overturned, by legal challenges.

Nonprofits with federal grants and contracts, especially those providing diversity, equity, and inclusion trainings and programs to or in partnership with the federal government, or work in immigration, LGBTQ+ rights, or environmental protection, should review their programs and contract language immediately as it pertains the various EOs. The National Council of Nonprofits prepared and is continually updating its analysis of the impact of the EOs on nonprofit organizations.

Read the Executive Order Analysis

How Have the EOs Affected Your Work?

AZ Impact for Good and NCN are tracking the impact these EOs are having on our member organizations. Respond to AZIFG’s brief Pulse Poll and share your story with NCN today!

Take the Executive Order Poll

Nonprofits are not to be ignored. Sign on now.

Charitable nonprofits and philanthropy have much at stake as the 119th Congress gets busy on tax and spending priorities. Lawmakers will decide momentous policy questions that can have a profound impact – positive or negative – on the ability of local organizations to improve lives, strengthen communities, and advance the public good for years to come.

We encourage you to join with thousands of charitable nonprofits throughout the United States in signing onto the Nonprofit Community Letter to ensure federal lawmakers understand the importance and impact of charitable organizations to their constituents and communities.

Sign the Letter

Federal Advocacy Issues

As seen in the Nonprofit Champion Newsletter from the National Council of Nonprofits. If you are an AZ Impact for Good member and are not receiving this newsletter, please contact us.

Nonprofit Champion Newsletter: January 27 Edition

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Members can post news on the AZ Impact for Good website for free. Have a press release you want to share? Staff or program announcements? Post them by clicking the link below.

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