Catalyst Weekly Policy Briefing Issue VI: Courts Weigh In as Agencies Make Cuts

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

Federal actions 

• Budget: Congress has about one week to approve a continuing resolution (CR) to authorize funding for the United States government. Otherwise, all operations must cease by midnight on March 14 when the current continuing resolution expires. Two proposals are currently under consideration. A “top line” CR would appropriate funds for just a few more weeks, pressuring legislators to pass a full budget. The plan favored by the Speaker of the House and President is a “full-year” CR that keeps funding flat through the end of the fiscal year (September 30). Opponents view this as a way to continue dismantling federal agencies.​​​​​
• ​​​​​​Education: It was confirmed on March 3 that the Department of Education will be led by Secretary Linda McMahon. She named priorities to “return education to the states” and support school choice. The department’s role is largely financial, administering $1.5 trillion of student loan debt for 40 million borrowers. It also provides a critical data function through its civil rights office that helps identify disparities in resources, access, and discipline. Over the years, the need for and role of the department has come into question, and this administration may put that to the test with one or more executive actions aimed at drastically reducing the scope of the department, expected as early as next week.
• Staffing cuts at Veterans Affairs: The Veterans Affairs department plans to cut around 15% of its workforce (around 80,000 positions), returning to 2019 staffing levels. VA Secretary Collins said measures are being taken to enhance services and no benefits will be affected. There are dozens of health and benefits facilities in San Diego County (veterans in Imperial County must travel to Palm Springs or San Diego). With a veteran population of more than 7,000 in Imperial County and 200,000 in San Diego County, having adequate staffing to support their needs is a critical concern. Lawmakers are reported to be pushing against the severity of these cuts.

FUNDING FREEZES

• The National Council of Nonprofits (NCN) filed a new motion in its case against the Office of Management and Budget. A preliminary injunction blocking the federal funding freeze was issued on February 25. However, since funds awarded by the Department of Housing and Urban Development in January remain unavailable, NCN filed this new motion to ask the courts to specify that funding for critical services and shelter for people experiencing homelessness should be made available.
• A federal judge’s preliminary injunction issued on Wednesday paused cuts to the National Institutes of Health budget while lawsuits proceed. As we noted in last week’s briefing, our region’s vast biomedical research sector conducts studies on everything from cancer to bird flu, and would be significantly impacted if the $35 billion NIH budget was cut.

TAKEAWAYS: WHAT PHILANTHROPY CAN DO

• Help nonprofits diversify their public funding streams. Check out these bills being tracked and sponsored by CalNonprofits that would help nonprofits secure and manage State of California funding. They address issues like promoting timely payment, improving coverage of indirect costs, and easing the administrative burden of registration with the State Attorney General.
• View this new research from the Nonprofit Institute at the University of San Diego. If an area you fund is impacted, reach out to your grantees to see what they are experiencing and if they anticipate a timing issue or a shortfall. Find ways you can help, whether that’s funding, network connections, planning, or other opportunities.
• Register for Sacramento Advocacy Day on April 1- 2. Join Catalyst and our partners from Philanthropy California for a day of workshops and briefings, followed by a day of meeting with our region’s legislators. We’ll provide the meeting schedule, talking points, and coffee, and you’ll get the opportunity to tell legislators what you care about, and what you want them to do. Seasoned advocates and first timers are all welcome. Want to brush up on dos and don’ts? Register for our Advocacy 101 workshop at Catalyst’s office on March 11 at 9am.
• Stay true to your purpose. In a conversation with Raúl Macias, democracy director at the Haas Jr. Fund, California Black Freedom Fund executive director Marc Philpart emphasized the importance of “investing unapologetically in Black leaders and community advocacy.” Especially a time when diversity, equity, and inclusion are under attack, and race-based grantmaking may feel risky for foundations, now is the time to stand firm.

RESOURCES 

• ​​​​​​In this 16-minute video from February 24th, County Board of Supervisors Chair Lawson-Remer explains the impacts San Diego County will face from the federal budget freeze and potential cuts. She shares how services funded by the $1.3 billion we receive will be impacted, including disaster relief, housing, and behavioral health.
• Independent Sector published results of public polling in mid-February that shows strong support for the social sector. With interest in things like tax policy, the value of community service, and volunteer programs, we can be confident that the public is with us. Visit their page for key takeaways or access the topline data to draw your own conclusions.
• This article on contingency planning from Catalyst member Moss Adams provides guidance and considerations for those who are new to the practice. Share with your grantees or use it yourself.