Federal Issues at a Glance

Executive Orders Affecting Charitable Nonprofits

The Impacts of the Recent Executive Orders on Nonprofits

2025 Federal Tax Bill

Federal Funds and Nonprofit Lobbying

2025 Federal Tax Bill

The 2025 Tax Bill is already affecting nonprofits and the communities we serve. 

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. 

Nonprofits cannot use federal funds for lobbying activities, but nonprofits receiving federal funds may use other sources of funding for lobbying activities.

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."

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.

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."

Recent Government Shutdown

The federal government was shutdown from October 1 through November 12, the longest shutdown in U.S. history. Congress now has until January 30 to pass a budget or a continuing resolution to avoid another government shutdown. 

New Mexico's Federal Delegation

Representative Melanie Stansbury, District 1

Representative Gabe Vasquez, District 2

Representative Teresa Leger Fernandez, District 3

Senator Martin Heinrich

Senator Ben Ray Lujan

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