Public policy news and updates for the philanthropic sector

March 21, 2025

What's Happening This Week...

• What We're Tracking
• Additional Updates
• Happening in the States
• News, Resources, and Events

What We're Tracking in DC

Recent Executive Orders

The President continues to advance his policy agenda through executive actions. Below are some of the recent actions most relevant to the sector.

• Restoring Public Service Loan Forgiveness directs the Secretary of Education, in coordination with the Secretary of the Treasury, to review the definition of "public service" under the PSLF Program, to ensure that the definition doesn't include organizations that engage in activities such as advancing illegal immigration, terrorism, discrimination, and public disruptions.
• Improving Education Outcomes by Empowering Parents, States, and Communities directs the Secretary of Education to reduce the scope of the Department of Education and “return authority over education to the States and local communities.” 
• Continuing the Reduction of the Federal Bureaucracy eliminates the non-statutory components of certain federal independent agencies: Community Development Financial Institutions Fund, United States Interagency Council on Homelessness, and Institute of Museum and Library Services. This executive order is similar to one signed in February to eliminate other entities including the U.S. Institute of Peace.

Read more about the executive actions our team is monitoring and how the administration’s implementation of these orders could impact the sector.

Budget Reconciliation Conversations Continue

Reconciliation, and particularly the tax provisions, will be a top priority for Congress when Members are back in town next week. They are only scheduled to be in DC for three weeks before returning home for the April state and district work period, and Republicans' Memorial Day self-imposed deadline is fast approaching.

While nothing is certain yet, it seems like Republicans are headed in the direction of a single-bill strategy for reconciliation that would include border security, energy, and taxes. Senate Republicans are meeting with the Senate Parliamentarian, who will ultimately decide which provisions are germane and can therefore be included in the reconciliation bill. Read our primer on budget reconciliation for more information. 

Additional Updates

• DETERRENT Act: The House will consider the DETERRENT Act (H.R.1048) next week. A similar bill passed the House last year. Among other provisions, it would create additional disclosure requirements for colleges and universities that receive foreign gifts and contracts, lower the disclosure threshold for foreign gifts and contracts to $50,000, and require colleges and universities to disclose all gifts from a foreign country of concern or foreign entity of concern.
• Judicial Movement on DEI and DEIA Executive Orders: The U.S. Court of Appeals for the Fourth Circuit lifted a nationwide injunction imposed last month by U.S. District Judge Adam Abelson of the U.S. District Court for the District of Maryland regarding Executive Orders 14151 and 14173. The unanimous ruling allows enforcement to proceed while legal challenges continue through the courts. Check out the latest highlight from Holland & Knight.
• New DEI Guidance: On Friday, the Equal Employment Opportunity Commission (EEOC) and Department of Justice issued guidance documents related to how the Administration is viewing unlawful DEI-related discrimination under Title VII.
• FEMA Hearing Next Week: The House on Transportation and Infrastructure Economic Development, Public Buildings, and Emergency Management Subcommittee will hold a hearing on “Reforming FEMA: Bringing Common Sense Back to Federal Emergency Management” on March 25 at 10am ET. It will be available to watch online.

Happening in the States

State Policy Updates

Several proposals are being considered or signed into law that include charitable nonprofits. A proposed bill in Massachusetts would cap charitable donation deductions at $5,000 for singles and $10,000 for couples. Newly enacted legislation in Montana will require the state’s Department of Revenue to review and make public all exempt property every 8 years. Companion bills in North Carolina (H.72/ S.58) would prohibit the Attorney General from participating in litigation challenging an Executive Order issued by the President. 

News & Resources

• It’s possible to work across differences: Here’s how, Candid
• CDFIs Are Pillars of Local Economic Growth for Rural and Urban Communities, Urban Institute
• The Size of the Tax Cut, New York Times
• Nonprofits by the Numbers: Sector’s Vital Role in American Life, Nonprofit Quarterly 

Keep in Touch!

Please feel free to reach out to any of us on the Government Relations Team with comments or concerns, or to share an issue, article, event, or op-ed you would like to see covered in a future Washington Snapshot.

View this email as a web page.