Federal Policy Impacting Nonprofits: What You Need to Know

March 27, 2026

We know that most of us are in the annual sprint to Sine Die in Annapolis, but more than ever, it’s also important to remain aware of threats and actions at the federal level. We are forwarding important updates from the National Council of Nonprofits and asking that you share them within your own networks.

Urgent Action Needed: Oppose Proposed SAM Changes

National Council of Nonprofits is asking you to please read and join more than 1,000 organizations that have already signed onto the national letter opposing the disastrous proposed changes to the System for Award Management (SAM), the online portal nonprofits, state, local, and tribal governments, and other entities use to do business with the federal government. More than 14,000 comments have also been submitted to Regulations.gov!

This is a significant milestone, and we are grateful for the way you have mobilized your members and coalitions.

With the March 30 deadline approaching, we are pushing to reach 1,500 signatures. If you are able to share the letter with your networks one more time, it would go a long way in helping us reach that goal.

SAVE America Act – SHARE WIDELY!

The Senate is continuing to debate the SAVE America Act, which would require individuals require individuals to show proof of citizenship in person to state elections officials to register to vote or update voter registration. The legislation would also largely ban automatic, mail-in, and same-day voter registration, directly impacting nonprofit voter registration activities. The bill is not expected to pass the Senate, where 60 votes are needed to overcome a filibuster. But, debate is expected to continue through the end of next week – or longer.

Federal Spending Advocacy Toolkit – SHARE WIDELY!

On Monday, NCN is publishing Advocating for Federal Spending: A Practical Guide for Nonprofits to provide nonprofits with the information they need to effectively advocate for the federal resources that matter most to the people and communities they serve. The toolkit will be included in Monday’s Champion edition! Please feel free to share this resource widely.

Investigations Into Nonprofits – SHARE WIDELY!

The FBI and IRS are forming a new initiative to investigate nonprofits over suspected possible links to domestic terrorism. This action stems from the recent executive order identifying “Antifa” to be a domestic terrorist organization, and a national security presidential memorandum directing federal agencies to investigate and prosecute nonprofits and other entities that finance or support terrorism. As NCN and others have pointed out, the presidential memorandum goes beyond a focus on acts of political violence to include constitutionally protected viewpoints, including “anti-Americanism, anti-capitalism, and anti-Christianity; support for the overthrow of the United States Government; extremism on migration, race, and gender; and hostility towards those who hold traditional American views on family, religion, and morality.”

In response, NCN President and CEO Diane Yentel warned that, “Mobilizing the FBI and IRS to investigate nonprofits without evidence of wrongdoing is another step in a pattern of attempts by the administration to silence nonprofit organizations whose work may be counter to its priorities. Weaponizing the power of government in this way undermines constitutional rights and threatens democracy.”

Tax Reconciliation 2.0 – SHARE WIDELY!

NCN is keeping a close eye on whether Congress will attempt to enact a second tax reconciliation bill this term. Under a reconciliation package, Congress can enact certain tax and spending provisions with only a simple majority in the Senate, rather than the 60 votes typically needed.

While most experts felt it was unlikely that Congress would take up another reconciliation package – the process is very cumbersome and Republicans have only a razor-thin majority in the House – the war in Iran and the need for supplemental military funding are increasing the chances that Congress might turn to this process. If they do, NCN will monitor any legislative package closely to ensure that harmful provisions impacting the nonprofit sector are not included, including those tax provisions that were initially proposed in earlier versions of H.R. 1, but that nonprofit advocates and our champions on Capitol Hill were successful at removing from the final tax bill. If Congress takes up a reconciliation bill, we could also see renewed efforts to cut safety net programs, like Medicaid and SNAP, in the name of eliminating “waste, fraud, and abuse.”

Stay informed, and help ensure your networks are aware of these developments. Your voice matters!

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