2025 State & Federal Policy Actions – a comprehensive list

“A federal appeals court is leaving an order in place that requires President Donald Trump’s administration to provide full SNAP food benefits for November amid a U.S. government shutdown. The judge gave the Republican administration until Friday to make the payments through the Supplemental Nutrition Assistance Program. But the administration asked the appeals court to suspend any court orders requiring it to spend more money than is available in a contingency fund, and instead allow it to continue with planned partial SNAP payments for the month.”

“A federal judge in Rhode Island ordered the Trump administration Thursday to find the money to fully fund SNAP benefits for November, a decision that the administration promptly appealed. The order was in response to a challenge from cities and nonprofits complaining that the administration was only offering to cover 65% of the maximum benefit, a decision that would have left some recipients getting nothing for this month.”

The problem stems from the way in which the administration has opted to fund benefits, and the intricate rules it has foisted on states this week to calculate aid amounts for the 42 million people enrolled in SNAP. For nearly 1.2 million households, or almost five million people, the changes may result in benefits of $0 in November, according to the Center on Budget and Policy Priorities, a left-leaning group, which analyzed the government’s public filings and shared its findings early with The New York Times.

“The president caused some confusion earlier Tuesday when he appears to threaten SNAP benefits unless Democrats voted to re-open the government – despite court orders mandating the administration to pay out some of that aid. His top spokeswoman said the administration continues to pay out SNAP funding using contingency funding, which is what two separate judges ordered on Monday.”

“Using food assistance as a political tool is reprehensible and must not stand. The court’s order is clear – the federal government must act urgently to provide food assistance during the shutdown. The administration should immediately comply with the court order and ensure that SNAP benefits reach families, children, and seniors who cannot wait for basic and needed food security.”

 “President Trump threatened on Tuesday to deny food stamp payments for 42 million Americans until the end of the government shutdown, even though a federal court last week ordered the administration to continue funding the program. But hours later, Karoline Leavitt, the White House press secretary, said the administration was “fully complying” with the order. At the same time, a group of cities and nonprofits returned to court to try to force the administration to pay the full benefit, not just half, in November.”

A Texas federal judge rescheduled a hearing on the Johnson Amendment for Nov. 25 in Dallas. The judge had cancelled the hearing originally scheduled for Nov. 7 in Washington, D.C. last month. The lawsuit could impact the 70-year-old federal law that protects nonprofits from partisan politics. For more information on the lawsuit and to take action, see Charitable Nonprofits Are Built on Trust: Let’s Protect It.

“Because of the court order our team, co-counsel, and clients secured on Friday, the Trump-Vance administration is being forced to pay SNAP benefits from the available contingency funds. This means SNAP beneficiaries – including children and seniors – whose money ran out at the end of last month should be receiving funds for essential nutrition. Yet, even after losing in court, the Trump-Vance administration is back in court today, still trying to deprive people of their full benefits under SNAP.”

“The decision comes after two federal judges ruled that freezing payments for the country’s biggest anti-hunger program is unlawful, even as the money ran out this weekend for the 42 million people who rely on SNAP to put food on the table.”

The lawsuit challenges the Administration’s final rule to overhaul of the Public Service Loan Forgiveness (PSLF) program by unlawfully limiting which charitable nonprofits qualify as “eligible employers.”

However, benefits may be delayed. The federal administration will not appeal the ruling. More from NCN & MCN.

“Those who work with undocumented immigrants, provide gender transition care for minors or publicly protest could be blocked from student loan forgiveness under a new rule.”

The lawsuit challenges Trump-Vance Administration’s unlawful suspension of SNAP, threatening food assistance for 42 million people and pushing local nonprofits beyond the breaking point.

“Gov. Tim Walz and the Department of Human Services called in a third-party group to size up billing in 14 high-risk Medicaid programs. The move to have an audit conducted by the company, Optum , is coupled with a payment freeze that has some legitimate service providers fuming.”

The federal court overseeing the IRS legal settlement case involving the Johnson Amendment issued a new order cancelling the November 7 hearing in Washington, D.C. At the hearing, the court would have heard arguments about a motion to intervene by Americans United for Separation for Church and State. We will let you know if/when the hearing is rescheduled. At issue is a 70-year-old law – known as the Johnson Amendment – that protects nonprofits, including religious organizations, from partisan politics.

“Earlier this month, President Trump hosted a roundtable at the White House about ANTIFA, the far-left movement or ideology opposed to fascism. Some of the right-wing influencers gathered around the table urged him to designate ANTIFA as a foreign terrorist organization.”

The Supplemental Nutrition Assistance Program (SNAP) is a mandatory entitlement program that provides about 1 in 8 U.S. residents an average of $187 a month in food aid. But the roughly $8 billion a month to fund SNAP benefits comes through annual congressional appropriations, which lapsed Oct. 1.

NCN President and CEO Diane Yentel said in a press statement, “We have been pleased with GoFundMe’s openness and self-reflection and the speed with which they responded to our concerns.”

SNAP — Supplemental Nutrition Assistance Program, also known as food stamps — is paid for by the federal government, and funding has run out. Recipients will not receive their benefits — usually in the form of a credit on an electronic benefits transfer (EBT) card — in the month of November unless Congress reconvenes and passes a spending bill. That means the 440,000 Minnesotans who typically rely on SNAP food are likely to seek help from food shelves instead. Most SNAP recipients are children, seniors and people with disabilities.

This initiative creates significant concerns for nonprofits including lack of consent, confusion, fees, implementation challenges, SEO optimization, and more.

The Trump Administration is reportedly moving forward with sweeping changes to the Internal Revenue Service (IRS) to launch criminal investigations into nonprofits that oppose the Administration’s priorities and ideologies, according to a Wall Street Journal report. The IRS overhaul comes after the President signed a memorandum in late September, directing federal agencies to “investigate, prosecute, and disrupt” nonprofits the Administration claims is supporting or funding domestic terrorism. Democratic Members of the House Ways and Means Committee have called for investigations into the WSJ allegations. For more information, see Attacks on Freedom of Speech: What Nonprofits Need to Know. Article: How Trump Alleges Terrorism to Expand His War on Tax-Exempt Groups

The U.S. Department of Agriculture has informed states that there are insufficient funds to pay for SNAP benefits in November — unless Congress passes a spending bill by the end of the month. SNAP benefits, also referred to as food stamps, help low-income families buy food. About 440,000 Minnesotans rely on SNAP. Most of them are children, seniors, and people with disabilities.

The coalition releases a statement condemning attacks on nonprofits, calling it “deeply un-American.” 

View daily updates, what nonprofits should do, and how the shutdown disrupts nonprofits’ ability to serve communities. 

“President Trump and his administration have reportedly directed prosecutors to criminally investigate the Open Society Foundations, an unprecedented and direct assault on the nonprofit sector. We condemn this action for what it is: a blatant attack on one of the core principles of our democracy, freedom of speech.”

The directive suggests department leaders are following orders from the president, a major break from decades of past practice meant to insulate the agency from political interference.

The order leverages new data sharing laws passed in the 2025 legislative session and builds on significant steps already taken to safeguard public dollars and ensure resources are directed to Minnesotans who need them most.

A Presidential Memorandum was published by the White House about a “new law enforcement strategy” to investigate domestic terrorist organizations, coordinated by The National Joint Terrorism Task Force and local offices. This memorandum came three days after President Trump designated Antifa (anti-fascists, a loose ideology) as a domestic terrorist organization.

Statement and guidance from MCN: On September 15, Vice President JD Vance said, “we’re going to go after the NGO [nonprofit] network that foments, facilitates, and engages in violence,” and specifically (and baselessly) tied several major foundations as funders and supporters of political violence. In addition, 35 members of Congress issued a letter, calling on Congress to investigate the alleged role of nonprofits and foundations. To be clear: There is no evidence linking nonprofit organizations to political violence.

The White House says many other actions could follow the designation, including the possibility of criminal charges, unilateral revocation of tax-exempt status, or criminal investigations opened against foundations or other nonprofits that the administration determines, without proof, have supported a decentralized and leaderless movement.

Senator Tom Cotton (R-Arkansas) today introduced the Nonprofit Governance Integrity Act to amend the Internal Revenue Code of 1986 to prohibit foreign nationals from China, Russia, Iran, North Korea, and Cuba from serving on the board of directors of certain nonprofits, to include 501(c)(3)s, 501(c)(4)s, and 501(c)(6)s.

“Political violence has no place in America. Our strength lies in debate, persuasion, and the ballot box. The recent escalation of violence — from the assassination of Charlie Kirk, to the killing of Minnesota State Rep. Melissa Hortman and her husband, to the attempted assassination of President Donald Trump, to the arson attack on Governor Josh Shapiro and his family — underscores the devastating consequences of hate across the political spectrum.”

According to Diane Yentel, President and CEO of National Council of Nonprofits, “Charitable nonprofits rely on PSLF to attract and retain the skilled workforce needed to meet everyday challenges. Preserving the current definition of qualifying employer without additional limitations best serves nonprofit employees and the communities that depend on them. Undermining this program would weaken nonprofits’ ability to meet critical needs in every community across the country. This is yet another way the Administration is trying to create fear and uncertainty among nonprofits.”

“Fraud is never acceptable and my administration will continue to bring everyone to the table to help
solve this problem. As financial stewards of public funds, I am ordering agencies to show the public all
the efforts they have taken and continue to take to stop and prevent fraud. I am ordering agencies to
use their new data sharing abilities to create a Statewide Office of Inspector General (“OIG”)
Coordinating Council to collaborate and stop fraud across the enterprise. And, I’m ordering agencies to
take an even harder look at programs and end the ones that pose too much risk.”

The special election results restore the 67-67 tie in the Minnesota House.

Vice President JD Vance, while hosting an episode of Charlie Kirk’s podcast at the White House, shared plans to crack down on what “they alleged was a left-wing network that funds and incites violence.“

See proposals and other relevant documents from the September 15 meeting. 

The provision would have allowed Secretary of State Marco Rubio to revoke/refuse to issue passports to US citizens if he alone deems that the individual has “knowingly aided, assisted, abetted, or otherwise provided material support to an organization [he] has designated as a foreign terrorist organization.” It is notable that this language is very similar to HR 9495, which threatened the nonprofit sector.

Lifted by the U.S. Office of Personnel Management (OPM), the foundational workplace giving campaign for federal workers will continue. Nonprofits pressured the Trump administration, led by the Nonprofit Alliance, the National Council of Nonprofits and United Way Worldwide. In response to this effective advocacy, OPM will continue to allow the CFC to provide federal employees, contractors, and retirees with the opportunity to make charitable donations to nonprofits through payroll deductions. Since it was created in the 1960s, the CFC has helped raise nearly $9 billion for nonprofits, and last year alone, the CFC raised $66 million.

“Senate DFL Caucus is announcing the formation of the Select Subcommittee on Federal Impacts on Minnesotans and Economic Stability. This committee, unique in state history, will help communities prepare for cost increases and lost services caused by the budget bill passed by Congress, and understand how decisions made by Donald Trump and his cabinet will impact Minnesotans.”

Laws around nonprofit lobbying remains unchanged, despite recent White House memo.

The Knight, MacArthur and Ford foundations are among those pledging emergency funding after Trump’s rescission stripped federal funding from PBS and NPR stations.

New research published by MCN on Minnesota nonprofits. Looking forward, 46% of nonprofits surveyed plan to increase public policy work and/or lobbying. Key report highlights include: nonprofits continue to report financial challenges driven by stagnant or decreased funding, increased expenses, and increased demand for services; the impact of navigating uncertainty due to recent federal actions, including funding disruptions, attacks on DEI, and increased ICE raids; and the mounting tensions over the government’s oversight of the nonprofit sector.

President Trump signed an executive order (EO), Improving Oversight of Federal Grantmaking, which makes significant changes to the process that federal agencies use to award, oversee, and terminate federal grants. The EO requires review and approval by political appointees, increased discretion for political appointees, new processes, additional review, and changes to terms and conditions. The EO requires grants to allow the administration to terminate the grant for “convenience” or if the grant does not advance agency priorities.

MCN’s analysis on the bill’s impact on nonprofits: H.R. 1’s policies will be implemented over the next decade, and will cause communities to rely more heavily on nonprofits for services they need, although it is impossible for the nonprofit sector to replace the scale, reach, or guarantee of these federal safety net programs. 

According to a social media post by Trump, that census would exclude millions of people living in the country without legal status — an unprecedented change to how the country has conducted population tallies since the first U.S. census in 1790.

The event was hosted by Minnesota U.S. Representative Betty McCollum. View the press release and recording.

“The proposed settlement could create a murky gray area — technically leaving the law intact, but functionally encouraging selective enforcement. That risks turning nonprofits into vehicles for undisclosed political contributions,” Ellis (MCN Public Policy Director) said. “There’s a very real dark money component,” she said. “It would transform charitable nonprofits into vehicles for political donations without disclosure. That’s terrifying.”

View the implications of “Ending Crime and Disorder on America’s Streets” via the National Council of Nonprofits’ Executive Order Tracker (page 30).

“Minnesota is on track to tie the record number of special elections for the Legislature held in a single calendar year — and potentially exceed it.  Depending on the outcome of the three upcoming special elections, control of the Legislature could shift but only if Republicans manage a sweep. Currently, there are 34 Democrats in the Senate and 32 Republicans. Mitchell’s resignation will make the count 33-32. Two special elections will bring the chamber back to its full complement.”

Former MCN Public Policy Director Marie Ellis’ op-ed was published in the Star Tribune regarding the Johnson Amendment and nonprofit nonpartisanship. As Ellis says about being a 501(c)(3) nonprofit: “That’s the tradeoff: if you want the public benefit of tax exemption, you take on the public responsibility of staying nonpartisan.”

New Johnson Amendment resource created by MCN.

Hearing notes.

According to the Committee majority’s description, the hearing will focus on “how federal grants from USAID and the Justice Department were leveraged by these organizations to fund causes fundamentally opposed to the national interests of Americans.”

This new free resource for all Minnesota nonprofits features a nonprofit legal help desk, legal resource library, and compliance support.

The New York Times reports that churches and other houses of worship can endorse political candidates to their congregations, carving out an exemption from the 70+ year old Johnson Amendment, which bans partisan activity by 501c3 nonprofits. At this time, the lawsuit would only impact the two churches named, not all houses of worship. Read the response from the National Council of Nonprofits.

The package signed into law by Trump on July 4 is projected to increase the national deficit by more than $3 trillion. It will be partially funded by $1 trillion in cuts to Medicaid, a move that will have widespread consequences, resulting in nearly 12 million Americans becoming uninsured over the next decade.

The sprawling 900+ page bill includes major changes to SNAP and Medicaid, immigration enforcement, tax breaks for the wealthy, and more. Read: Impacts of H.R.1 ‘Big Beautiful Bill’ on nonprofits from MCN, What does H.R. 1 cost, from the Bipartisan Policy Center.  and HR 1 Implementation timeline.

This year’s state legislative session wrapped up without any harmful changes to laws directly affecting nonprofits—and in this case, no news is good news. Several concerning proposals were introduced that could have negatively impacted our sector, but thanks to strong advocacy by MCN, our partners, and most of all, YOU, none of them made it into law.

The Supreme Court in a 6-3 decision along ideological lines on Friday sided with the Trump administration’s request to limit universal injunctions issued by federal courts. The opinion in the birthright citizenship case was highly anticipated. At issue was how the lower courts should handle President Trump’s executive order, which declared that the children of parents who enter the U.S. illegally or on a temporary visa are not entitled to automatic citizenship.

Elected officials and the public paid their respects to Speaker Emerita Melissa Hortman (DFL-Brooklyn Park), her husband, Mark, and their golden retriever, Gilbert, in the Capitol Rotunda Friday. Hortman is the first woman and one of fewer than 20 Minnesotans to lie in state. The Hortmans were fatally shot in their home June 14. Sen. John Hoffman (DFL-Champlin) and his wife, Yvette, were also shot in their home in a related attack.

Nonprofits do incredible work, often leading in times of crisis—but even we have limits. Such massive funding cuts are beyond what any nonprofit system can absorb.  

Statement released by MCN regarding the assassination of Minnesota House Speaker Emerita Melissa Hortman, her husband, and the attempted murder of Minnesota Representative John Hoffman and his wife Yvette.

NCN testifies at the House Subcommittee on Delivering on Government Efficiency (DOGE) Hearing on “Public Funds, Private Agendas: NGOs Gone Wild. Read Diane Yentel’s full testimony.

To respond to the emergent legal needs of Minnesota nonprofits and reduce the high-cost barrier of legal support, the Minnesota Council of Nonprofits and LegalCORPS are partnering to launch a free Nonprofit Legal Services Initiative, featuring the following resources: nonprofit legal help desk, legal resource library, and compliance support.

Provision would have allowed the Executive Branch to revoke a nonprofit’s tax status without due process.

Congress must reject harmful cuts to basic needs including health care and food assistance.

Sometimes called “legislatively named grants,” the plan shifts away from direct appropriations favoring allocations to state agencies for competitive grant processes. This approach contrasts with the practices of recent legislative sessions and the current position of the Senate. MCN’s position has been that both types of grants are important and complement each other. A letter has been drafted to ask the House to continue providing direct appropriation to nonprofit organizations.

“Some IRS officials fear the deliberations appear to depart from longstanding practice.”

We need to remind our Congressional representatives that Minnesotans value the public services that ensure all of us can afford food, health care, and other basics we need to build the lives we want for ourselves and our families. 

Similarly, the federal National Endowment for the Arts abruptly pulled grant funding for work that falls outside the priorities set by the president. Full Executive Order.

You’ve likely seen the Trump Administration’s continued attacks targeting nonprofits on ideological grounds. We are now hearing additional executive orders (EOs) targeting nonprofits may be released soon, and while nothing specific has been announced, a focus could include revoking the tax-exempt status of nonprofits working in certain areas. The President does not have the authority to unilaterally revoke any organization’s tax-exempt status. By law, the President is prohibited from directly or indirectly influencing tax-related decisions of the Internal Revenue Service. 

You’ve likely seen the Trump Administration’s continued attacks targeting nonprofits on ideological grounds, which most recently threatened to strip Harvard University of its tax-exempt status and used the Department of Government Efficiency (DOGE) to target the Vera Institute of Justice and Citizens for Responsibility and Ethics in Washington (CREW). We are now hearing additional executive orders (EOs) targeting nonprofits may be released soon.

A resource from MCN to clarify DEI terminology and current law, outline the current legal landscape, provide practical considerations for nonprofits, and provide some resources for additional reading on the topic of the legal status of DEI work.

Action alert sent by the Minnesota Budget Project.

Elchorn resigned after he was arrested during a sting operation and charged with soliciting a minor for prostitution. A special election to replace him was set for April 29.

Gottfried was sworn in as the 134^th member of the Minnesota House. This puts the House back at full strength, at an official 67-67 (DFL-R) tie, and power sharing began.

Sign your organization on to endorse the Protecting Sensitive Locations Act through our national partners at the Center for Law and Social Policy (CLASP). Learn more.

Many of the policies focus on state agencies, nonprofits, and others who may contract with the state government to carry out critical services. These bills (HF 1, HF 2, HF 3, SF 240, SF 263, SF 475, SF 538, SF 730, SF 981, SF 1123, SF 1219) would impact state grants and contracts in many ways, including this small sample: capping nonprofit executive salary, prohibiting all state agency employees and elected officials from serving as a voting member on nonprofit boards, requiring additional financial reconciliation. Read MCN’s testimony on HF 2 and read MCN’s testimony on SF 240.

The letter to the 119^th Congress called the “Four Facts about the Charitable Sector Congress Needs to Know,” reiterated the importance of nonprofits being nonpartisan, as well as serving as significant employers, economic drivers, and community problem solvers constituents rely on.

A federal judge in Rhode Island has found that the Trump administration has continued to freeze some federal funds, despite a temporary restraining order issued late last month blocking the administration’s efforts to pause payments for grants and other federal programs.

“The newly formed House Fraud & Agency Oversight Committee convened its first official hearing today, marking the beginning of a critical effort to investigate and prevent fraud, waste, and abuse in state government programs.”

“We are continuing to advocate for the protection of federal funding for nonprofits, so stay tuned for more updates as they come.” Learn more about why NCN filed the lawsuit.

Created by the National Council of Nonprofits, the list helps support and keep nonprofits informed on recent impacts.

A resource created by MCN to help nonprofits understand federal decisions across multiple areas including scenario planning, advocacy, safety & security, communications, and more.

The latest federal order targeting nonprofits. Read the breakdown from MCN. And a statement from the National Council of Nonprofits.

The U.S. District Court for the District of Columbia granted a temporary restraining order of the Office of Management and Budget’s (OMB) freeze on federal grant disbursements that has put essential services across the nation in jeopardy, in response to a suit filed by Democracy Forward on behalf of the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE. OMB must provide notice to all federal agencies and instruct all such agencies to release any funding that was paused under the directive. Read the reaction from the National Council of Nonprofits.

Read MCN’s full remarks and analysis on the impact to nonprofits.

It orders the federal administration to not withhold federal funding allocated by Congress.

It was announced that OMB Memoriam M-25-13 freezing all federal grants and loans, has been rescinded. This is a victory for nonprofits and other organizations impacted by this catastrophic decision, and a direct result of immediate advocacy and action from people here in Minnesota and across the country. Read the response from National Council of Nonprofits, including a statement on lawsuit filed.

“MCN is extremely concerned about the administration’s pause of federal grant funding, particularly to nonprofit organizations. To enact such a sweeping decision with less than one day’s notice is severely harmful and simply absurd.” Read the response from National Council of Nonprofits.

Minnesota nonprofits, higher education institutions, state and local governments, health care entities, and many more organizations that receive federal funding are facing an immediate and severe freeze of federal grants and loans, due to a memo issued by the federal Office of Management and Budget (OMB) Monday, January 27.  The freeze is temporary, although no end date has been declared, pending a review from federal agencies “to identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements.” Read the response from the National Council of Nonprofits.

“The judgment ends a dispute that dates back to the first day of the legislative session. With 67 Republicans present and zero DFL members, Simon, acting as presiding officer, ruled a quorum was not present. Arguing that 67 is a quorum because there are only 133 House members — the District 40B seat is vacant — Republican members went ahead and selected Rep. Lisa Demuth (R-Cold Spring) as speaker. Since then, committee hearings have taken place with only Republicans present, and DFL members have continued to stay away from the Capitol. In essence, the court decision voids any work done thus far in session.”

Created by MCN to serve as a resource for nonprofits to understand the many EO’s impacting nonprofits, including the topics of Diversity, Equity and Inclusion, Federal Government, immigration, LGBTQ+, Environment, Census, Civic Engagement, Houses of Worship/Faith-based Groups, and more.

That means immigration officials can now take immigration enforcement actions in previously protected areas, including places that provide social services, schools, churches, health clinics, and recreation centers. This means many nonprofits may be newly subject to immigration enforcement actions. Although nonprofits and the people they serve still have rights and some protections, these and other immigration enforcement escalations are placing immigrant communities under extreme stress and generating a lot of fear and uncertainty. Protecting Sensitive Locations Act of 2025 | CLASP.

The political battle over which party should control the Minnesota House intensified over the weekend and spilled into Monday, putting Tuesday’s start of the new legislative session into serious question. While Minnesota Senate leaders reached a weekend deal on sharing authority in their tied chamber, House Republicans and DFLers continue to trade charges over tactics as they try to sort out the balance of power.

On Friday, January 3^rd, Governor Walz signed an executive order and proposed legislation to identify and stop the theft of public money from public programs. The executive order, which immediately goes into effect, creates a specific fraud unit at the state’s Bureau of Criminal Apprehension and gives state agencies greater authority to stop payments to entities if there is suspicion of fraudulent activity. Recent cases of alleged and confirmed fraud of state dollars were conducted by individuals tied to for-profit and nonprofit entities. 

A law that requires employers with 30 or more employees to post a salary range or fixed pay rate in job descriptions went into effect on January 1. Minnesota Council of Nonprofits was proud to support this critical legislation, as it supports equitable hiring practices, saves time, and increases applicants.