The Federal Policy & Propaganda Landscape Facing the Nonprofit Workforce in 2026 - with host Rusty Stahl, Fund the People
In this episode, you get a firsthand report from "Foundations on the Hill." Rusty discusses emerging federal threats and opportunities for our sector. From new legislation to executive action, he shares what’s at stake for the nonprofit workforce—and why we must engage now to shape the narrative.
Links to Information Discussed:
Challenges on the Horizon
Reintroduction of H.R. 9495 (H.R. 6800 and S. 3554):
Press Release: Cornyn, Sheehy Introduce Bill to Revoke Tax-Exempt Status of CAIR, Groups Bankrolling Terrorists (Senator John Cornyn)
Press Release: Nonprofit Killer Bill Re-Introduced in the House and Senate (Charity and Security Network)
SPONSOR Act (S. 3942):
Press Release: Moran, Cruz Introduce Legislation to Deter Non-Profit Sponsorships of Left-Wing Radicals (Congressman Nathaniel Moran)
Official Text of the Bill from congress.gov
Executive Actions to Frame & Investigate Nonprofits as Terrorist Supporters:
Investigating Nonprofits as Terrorist Supporting Organizations:
- National Security Presidential Memorandum (NSPM-7) (The White House)
- Attorney General Memo - “Implementing NSPM-7: Countering Domestic Terrorism and Organized Political Violence - (Office of the Attorney General)
- FBI and IRS to investigate nonprofit groups for domestic terrorism links, sources say (CBS News)
- FBI and IRS join forces under Bondi directive (MS Now)
- How NSPM-7 Seeks to Use "Domestic Terrorism" to Target Nonprofits and Activists (ACLU)
Administration imposes ideological bounds on student debt forgiveness for public servants:
- Overview of Proposed Changes and Updates on PSLF program (National Council of Nonprofits)
- Finalized Changes and Litigation (National Council of Nonprofits)
- Education Department Imposes Controversial New Restrictions on Public Service Loan Forgiveness Program (American Association of Universities)
Administration pursues ideological litmus test for federal grants:
- DOGE Takes Over Federal Grant Website (NonProfit Times)
- Proposed Changes to Federal Grant Portal Could Disrupt Nonprofits and Harm Communities Nationwide (National Council of Nonprofits)
Guide to Submitting Public Comments on Changes to Federal Grants Certification (National Council of Nonprofits) Note: public comment period ended 3/30/26. 1,300 nonprofit groups joined the sign-on letter, and 22,000 submitted public comments! Apparently there will be further opportunities to offer public comment, so this info is worth reviewing!
Positive Developments
Philanthropy Caucus Launched in House of Representatives:
Small Nonprofit Retirement Security Act (H.R. 4548 / S. 2365):
Press Release: Buchanan Leads Bipartisan Effort to Help Small Nonprofits Offer Retirement Plans (07/21/25)
Educating Policymakers About the Nonprofit Workforce:
Five Surprising Facts About the Nonprofit Workforce (FTP hand-out for Congress)
NEW: Johnson Amendment Upheld:
Since recording this episode, news arrived that a court has upheld the Johnson Amendment, maintaining nonprofit separation from political campaigns and donations
Organizations Mentioned in the Episode:
Additional Links:
Related Episodes:
Peaceful Terrorists and Violent Activists (S9:E1, January 2026)
The Trump War on Charity (S8:E1, September 2025)
Mr. Stahl Goes to Washington (S7:E13, March 2025)
Nonprofits Made America (S7:E11, February 2025)
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