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Updates on Federal Actions
Affecting Nonprofits

​Latest Updates
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Potential Government Shutdown

Congress must pass a budget or a continuing resolution by September 30th to avoid a government shutdown. â€‹A September 8 Politico article, "Congress splinters into unlikely factions over looming government shutdown"suggests a compromise may not be reached in time. Nonprofits need to be prepared.

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Federal Funds and Nonprofit Lobbying

On August 28, the President issued a memorandum to the U.S. Attorney General regarding the use of appropriated funds for lobbying and political activity.

 

Our colleagues from the North Carolina Center for Nonprofits shared the following:

"The memorandum alleges that "the possible use of Federal grants as slush funds for political and legislative advocacy raises serious legal concerns."

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President Trump's memorandum appears to misinterpret the relevant federal statute. In fact, federal law does not prohibit nonprofits (or businesses) that receive federal grants, contracts, or cooperative agreements from lobbying. In 1995, a member of Congress tried to get that type of broad prohibition on lobbying enacted into law, but nonprofits were successful in advocating against it. Instead, the statute referenced in that sentence of President Trump's memorandum (often known as the Byrd Amendment) merely prohibits nonprofits and businesses that receive federal grants, contracts, or cooperative agreements from using these federal funds to influence other federal funding decisions. Nothing in federal law prohibits federally-funded nonprofits from policy advocacy at the federal level or from using other revenue sources to lobby Congress or federal agencies for appropriations or for the awarding, renewal, extension, or amendment of a federal grant, contract, or cooperative agreement.

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The memorandum directs the Attorney General to report to the President on the results of investigations into lobbying activities by federal grant recipients in 180 days. It is unclear what, if any, enforcement actions federal agencies may attempt to take against nonprofits that receive federal grants and are engaged in lobbying activities."

 
Federal Tax Bill
The 2025 Tax Bill is already affecting nonprofits and the communities we serve. 
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Resources
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What Nonprofits Can Do

​Share your experiences with the recent funding uncertainties. It will strengthen the case led by the National Council of Nonprofits. And it provide necessary information for our U.S. Representatives and Senators as they negotiate the budget.

Be prepared to enter your information multiple times, on different forms or via email:

  • Name and location of your organization

  • Sector of the community your organization serves, e.g., children, seniors, people experiencing food insecurity

  • Number of people employed by your organization

  • Number of community members served

  • Percentage of your budget derived from federal funds, either directly or as pass through funding from state or local governments

  • How the federal funding freeze affected or would affect your organization and the community members served by it.

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Where to share:

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Additional Information

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Additional Information and Resources

New Mexico Thrives

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New Mexico Thrives is fiscally sponsored by the Center of Southwest Culture, a 501(c)(3) organization.

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Email: info@nmthrives.org

Phone: 505-764-0440

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