Legislative Session

​Latest Updates

• Chart of Executive Orders Affecting Charitable Nonprofits by the National Council of Nonprofits

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Potential Government Shutdown

Congress must pass a budget or a continuing resolution by September 30th to avoid a government shutdown. ​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.

• Government Shutdown: What Should Nonprofits Do? by the National Council of Nonprofits

• The Federal Funding Shutdown Could Compound Financial Insecurity Among Nonprofits, by Katie Fallon, Hannah Martin, Laura Tomasko, Urban Wire, October 7, 2025

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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. 

• Analysis of the 2025 Tax Bill and Its Impact on Charitable Nonprofits by the National Council of Nonprofits

• One Big Beautiful Bill Implementation Timeline by New Mexico Voices for Children

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Resources

• How Government Funding Disruptions Affected Nonprofits in Early 2025, Urban Institute Resarch Repport, October 2025

• Impact of Federal Funding Changes on New Mexico's Philanthropic Sector, by The Grant Plant, April 2025

• ​Implications of Federal Funding (related to food and agricultures, by Farm to Table

• Myth vs. Reality: Executive Branch Lack Authority to Target Nonprofit Organizations, National Council of Nonprofits, April 21, 2025

• Nonprofit Checklist: What to Do When Your Federal Grant or Contract is Terminated, National Council of Nonprofits

• Nonprofit Checklist: Conducting a Risk Assessment for Federal Funding, National Council of Nonprofits

• Strategy Triage Tool 2025, Marian Urquilla, Center for Community Investment

• "Resiliency Strategies for Nonprofits in Times of Political & Financial Instability" by Sarah Young, Elizabeth Searing, and Kimberley Wiley, Nonprofit Quarterly, March 11, 2025

• "12 Urgent Financial Action Steps for Nonprofits: A 2025 Checklist" by Steve Zimmerman and Ruth McCambridge, Nonprofit Financial Commons

• "How to Simplify and Streamline During a Crisis"by Melanie Lockwood Herman, Nonprofit Risk Management Center

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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:

• National Council of Nonprofit's form

• NM Attorney General's form

• Write to Senator Ben Ray Lujan

• Write to Senator Heinrich

• Write to Representative Leger Fernadez

• Write to Representative Melanie Stansbury

• Write to Representative Gabe Vasquez​

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Additional Information

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• "Movement Lessons from the First 100 Days" by Building Movement Project, April 28, 2025

• "Sustaining the Social Safety Net: How Service Providers are Navigating Political Uncertainty" by Hector Malvido, Building Movement Project, March 13, 2025

• "Government Funding Cuts Put Nonprofits at Risk Across Nation" by Laura Tomasko, February 21, 2025 Urban Institute

• "How reliant are nonprofits on government grants?" by Cathleen Clerkin, Anna Koob, and David Wolcheck, February 6, 2025, Candid

• USA Spending, New Mexico

• "Ask Rhea!" Nonprofit Quarterly's fundraising advice column

• Federal Grants Update: Recommendations Amid Ongoing Uncertainty, February 17, 2025 YPTC

• "Turn on Your Headlights: How Funders Can Cut Through the Chaos Right Now" by Britt Lake and Melinda Tuan, February 13, 2025, The Center for Effective Philanthropy