State House Update
The Senate has been working on Tort Reform (S.244) for three weeks now. The bill was amended on Wednesday and awaits a final vote next week (March 25). There is a House bill (H.3497) solely related to Liquor Liability that passed unanimously in the House and is able to be taken up by the Senate, but the Senate will push for their larger Tort Reform package.
SPOTLIGHT: H.3927 - "Ending Illegal Discrimination & Restoring Merit-Based Opportunity Act"
On March 19, the House Education & Public Works Committee approved a "strike and insert" amendment to bill (the amendment became the bill).
The original version of the bill directed these public bodies from providing funds to grantees and contractors and/or subcontractors who engaged in DEI efforts - even if state funds are not related to or supporting those DEI initiatives - and required grantees/contractors to attest they did not promote or practice DEI. This section would have had far reaching impacts into nonprofit operations, and was one of concerns we raised during our testimony on the bill (watch it here).
We are happy to report that this grantee/contractor language was removed entirely from the bill in the Committee's amendment, as well as other sections of the bill that, in our review, were very vague.
In the amended form, the restrictions on the promotion and practice of "DEI", as defined by the bill, apply to state agencies, quasi-state agencies, institutes of higher learning (public universities), charter schools, school districts, and political subdivisions of the state (cities/counties/special purpose districts) - essentially all "public bodies".
However, some sections of the bill contain language that may impact how agencies partner with nonprofits due to the agency's requirement to conform to the bill.
Bottom line: The bill does not prohibit nonprofits (or for-profits) who receive state funds from practicing or promoting DEI, but rather restricts a public body from doing so, and therefore could alter how agencies and nonprofits partner.
What's Next: The bill is on the House Calendar for next week and could see debate as early as Tuesday, March 25 (depending on floor and committee activity). Tune in on the state house website.
Do you think you may be impacted by this amendment? Shoot us an email! |
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Federal Updates
EXECUTIVE ACTIONS
National Council of Nonprofits has launched an updated overview of how Executive Orders and Actions are impacting the field. You can find it at this link.
The following Executive Actions have been issued since our last update (this list is not inclusive of previous actions), and which could have an impact on nonprofits:
- EO #### - "...Consolidating Procurement"
[un-numbered until formally published in Federal Register]
Requires the consolidation of procurement for "general products and services" domestically across all agencies through the General Services Administration. Could impact nonprofits who provide some of these general services/products, and who have to go through the procurement process to do so.
- EO #### - "Improving Education Outcomes..."
[un-numbered until formally published in Federal Register]
Directs the Secretary of Education to take necessary steps to facilitate the closure of the US Department of Education as permitted by law. Full closure of the Department is not possible without Congressional action. Part of the Administration's stated strategy is to move some components of the Department to other agencies, but it is unclear to what extent these efforts can or will be accomplished.
CONGRESSIONAL ACTIONS
Congress has adopted, and the President has signed, a Continuing Resolution, funding the US Government through September 30, 2025 (end of federal fiscal year).
Congress has now turned their attention to the House version of Budget Reconciliation, which is the legislative vehicle the majority party in both chambers will use to pass President Trump's priorities - Immigration, Energy, and Taxes (and other items).
The tax debate is critical for nonprofits as it is set to impact everything from charitable giving to employment matters.
You can read our primer on this issue here. We will provide a more comprehensive overview as the debate takes shape.
JUDICIAL ACTIONS
New actions, related to nonprofits, since our last update only (see previous Member Update for past actions):
DEI-Related EOs Upheld (for now)
The 4th Circuit Court of Appeals stayed the preliminary injunction placed on DEI related Executive Orders.
Translation: Earlier in March, a federal judge ruled that many elements of two anti-DEI Executive Orders were likely to be unconstitutional, placing a nationwide preliminary injunction (pause) on the related EOs. The Administration appealed that ruling to the 4th Circuit Court of Appeals, which ruled in favor of the Administration - allowing the EOs to go into effect, for now. This ruling is not a ruling on the EOs themselves, but rather the preliminary injunction placed on them. |
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Watch Recording
National Council of Nonprofits Webinar: The Legal Landscape and Path Ahead for Nonprofits and Philanthropy
Did You Miss Monday's Webinar from NCN?
Multiple lawsuits are underway to protect charitable nonprofits from blocks to federal funding they have earned, and to challenge attacks on diversity, equity, and inclusion initiatives. The National Council of Nonprofits hosted an informational webinar on March 17 to explain the current legal landscape and to highlight how philanthropic leaders are acting with urgency in supporting nonprofits during this difficult period.
Watch the recording and view resources from webinar here.
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How We Are Approaching This Work
Together SC's Board of Directors has adopted an updated policy on Advocacy & Public Policy, as well as our 2025-2026 Public Policy Agenda - and it is all hyper-focused on protecting and advancing your ability to operate as a nonprofit in line with best practices.
We firmly believe that nonprofits are best suited to serve communities by remaining nonpartisan in law, fact, and purpose.
We will work collaboratively with our members and our elected officials to ensure that our advocacy work has real impact. We will employ pragmatic and bipartisan efforts to raise the sector's voice.
We will highlight the benefit nonprofits bring to our communities every day and advocate for the protection of our industry's best practices.
We recognize that advocacy is a marathon, not a sprint. There will continue to be moments like these ahead, and we will help our sector rise to meet them.
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