Policy Briefing

Catalyst Weekly Policy Briefing Issue V: More Cuts, More Questions

Here’s a look at what happened this week. (Catch up on our previous installments of this briefing here.)   

 

Federal actions 
  • The Senate and House both passed budget resolutions this week. As we’ve shared in past briefings, the Senate version does not tackle the savings needed to enact the administration’s desired tax cuts, but it does deliver on border enforcement, including significantly increasing funding for mass deportation and expansion of the border wall. The House version proposes $2 trillion in spending cuts that include reductions to programs that many legislators’ constituents depend on, including Medicaid and food stamps. 
  • This allows Congress to begin negotiations to reach a unified final budget bill. If you’re curious to learn more about the budget reconciliation process, we talk about it in the third issue of our weekly briefings. 
  • Federal workforce reduction continued with a new memo directing all federal agencies to prepare plans for a reduction in force and consolidation. For example, the Social Security Administration may eliminate 50% of all staff. Federal employees are found in communities across the country, with 80% outside of Washington, DC., including around 60,000 in Imperial and San Diego Counties. This will likely lead to longer processing times, reduced services, and limited access to critical programs that many communities rely on. 

 

Philanthropy’s advocacy  

Catalyst traveled to Washington, DC this week, where we heard legislators share the value they see in philanthropy as a convener of communities and conversations, as well as its ability to be nimble in the face of urgent needs. We were there for Foundations on the Hill, where we joined several hundred foundations and nonprofit advocates to elevate the issues that matter most to our sector. Here’s what we focused on:  

  • We urged our delegation to co-sponsor the bipartisan Charitable Act (S. 317/H.R. 801). The  Charitable Act extends and expands the expired charitable deduction for taxpayers who do not itemize on their tax returns, incentivizing every American to donate. This provision was first included in the CARES Act, and was signed into law by President Trump. The policy resulted in 90 million tax returns utilizing the deduction, with the biggest impact on households making between $30,000 and $100,000. Donations to charitable organizations increased by $30 billion as a result – and that is what our communities stand to lose if it is not renewed.
  • We urged for advocacy by legislators on our behalf for the nearly $70 million in EPA funding that has been awarded to our region but is now inaccessible or in question. This halts or delays projects in housing, transportation, health, and more. 
  • We spent time on the topic of disaster response, with interest in building more readiness and coordination among public and private entities for rapid response and long-term recovery. 
  • We found shared interest in finding pathways to bipartisan cooperation. We affirmed that donors, legislators, and communities are steadfast in our commitments to health, immigrant inclusion, clean energy, and more.  

 

Regional issues 
  • Medical research 
    • A court order allowed the National Institutes of Health to resume their funding, but directives from the White House have disrupted the process of reviews and approvals that allow funding for research projects to move forward. This delayed the disbursal of $1.5 billion across 16,000 grants.  
    • Though a limited number of processes have resumed, slowing the $48 billion annual budget of the National Institutes of Health has serious implications for our region, including disrupting clinical trials and slowing the development of new treatments.  
    • Other challenges include a cut of over 1,000 staff and an effort to cap indirect costs at 15% (currently under review by a Boston judge), which would strain research institutions by limiting funds for lab operations, administration, and infrastructure.
  • Immigration 
    • Refugee resettlement: The recent executive order suspending America’s refugee resettlement system was rejected by a federal judge on Tuesday who ruled that, while the administration has some discretion, this amounted to an “effective nullification of congressional will” and was not allowed. We have yet to see if the administration will appeal the decision. Our region receives thousands of refugees annually and is home to four federally funded refugee resettlement agencies whose funding, and therefore ability to serve people, had been frozen. 
    • Enforcement in communities: A judge ruled that immigration officers cannot conduct enforcement actions in houses of worship that are involved in a lawsuit, arguing that these are protected areas while a legal case is ongoing. Note that this protection is only for the parties involved in this lawsuit. Other publicly accessible spaces, like schools, hospitals, and grocery stores, are doing their best to help people understand their rights.  Separately, the administration determined it would allow federally-funded legal aid services to unaccompanied minor children to resume.  
  • Journalism 
    • A breakdown in the relationship between news media and the White Houes has emerged, with the Administration saying it will now decide which outlets gain access to pooled briefings, a role traditionally managed by the White House Correspondents Association (WHCA).  
    • In addition to the shift in who has access to briefings, WHCA will no longer share news summaries. WHCA states that they “cannot ensure that the reports filed by government-selected poolers will be held to the same standards that we have had in place for decades.” 
    • A key component of a strong participatory democracy is an informed public. Without an independent news media, access to reliable information is at risk. 

 

RESOURCES 
  • Join us for Advocacy 101, part of Catalyst’s Fundamentals Academy. All members’ staff, board, and volunteers are eligible to attend this in-person lunch session on March 11. We will walk through the basic rules and how-tos of putting your voice to work. 
  • Council on Foundations set up a link to send a message to Members of Congress urging them to support the Charitable Act. The Charitable Act is a “defense of sector” issue, so most foundations, including private foundations, can advocate. Read more about the self-defense exception.