Policy Briefing

Catalyst Weekly Policy Briefing Issue X: Budgets, Borders, and More Backlash

Hello again.

Last week, I took a trip with our colleagues at Philanthropy California to our state’s capital for Sacramento Advocacy Day. Over the course of two days, we met with agencies, legislators, and other philanthropic leaders to discuss how public funding can best serve our communities. These conversations underscored a clear message: state agencies are doing everything they can to connect grantees with new resources and capacity-building support. We are committed to continuing this dialogue and strengthening partnerships that ensure public dollars reach those who need them most.

While we were in Sacramento, there was still plenty unfolding. Here’s a look at what happened this week. (Catch up on our previous installments of this briefing here.)

 

THE FACTS

The Federal Budget
  • The House and Senate previously passed separate budget frameworks, but both houses must pass identical versions of the bill to open the budget reconciliation process. With a narrow Republican majority, this would allow the Senate to bypass a potential filibuster of the final bill with only 51 votes.
  • Over the weekend, the Senate moved forward (51-48) a budget resolution that cuts $4 billion in spending. This cut is much smaller than the over $1.5 trillion in spending proposed in a House version of the bill. The Senate resolution included a new “current policy” baseline that assumes the tax cuts slated to end this year will be extended in perpetuity.
  • By Thursday morning, Speaker Johnson had overcome resistance from Republican members seeking deeper cuts and announced that he had wrangled enough votes to pass the resolution. The resolution passed (216-214). Holdouts agreed to vote in favor of the resolution after being promised that Republican leadership would seek at least $1.5 trillion in cuts to safety-net programs in the final bill—with a major focus on cuts to Medicaid.
  • Concerns about how to pay for proposed tax cuts remain and intense negotiations between the House and Senate are expected as they draft the final legislative bill.

 

Immigration
  • A proposal to expand San Diego County’s Immigrant Legal Defense Program, which provides pro bono legal representation to detained immigrants, failed a vote on April 8.
    • From 2023 to 2024, the program assisted in nearly 500 cases and currently has 40 attorneys participating. It receives approximately 17 calls per day for assistance or information.
    • Supervisor Lawson-Remer noted that nearly two-thirds of detainees are granted relief when they have legal representation, as opposed to just 5% of those without representation.
    • The U.S. Supreme Court said the administration can continue to deport Venezuelans to El Salvador, claiming the suit was brought in the wrong court. However, the ruling does require that deportees be given an opportunity to challenge their removal.
  • The Department of Homeland Security revoked the right for migrants who entered the country using the CBP One app to remain, calling on them to leave the United States immediately.
    • The app has been re-launched as CBP Home, allowing migrants to identify their intent to “self-deport.”
  • A federal judge issued a stay on Thursday that prevents the termination of Temporary Protected Status scheduled to take effect on April 24, for Cuban, Haitian, Nicaraguan, and Venezuelan migrants.
    • TPS, as it is known, allows people to live and work in the United States for a limited time while seeking a pathway to permanent residence if their home country is unsafe due to natural disasters or civil unrest.
  • Visas are being revoked for hundreds of international students, including a number in California.

 

Diversity, Equity, and Inclusion
  • The Trump administration has launched an investigation into the California Department of Education for potential violation of the Family Educational Rights and Privacy Act (FERPA).
    • The law in question took effect on January 1 and states that teachers and staff are not required to inform a parent if a student changes how they describe their gender identity or sexual orientation at school.
  • Funding is being cut at major research institutions like UCSD for research or actions that may fall under the administration’s diversity, equity, and inclusion ban. Projects that may be cut include research on HIV prevention and violence against pregnant women.

 

Other News
  • 23 states and DC filed a lawsuit against the Trump administration over the cutting of $11 billion from the Health and Human Services budget.
  • 16 states have filed a lawsuit over cuts to National Institute of Health grants. The UC system (which conducts nine percent of all U.S. academic research) receives half of its funding from the federal government.
  • On April 5, demonstrations across the country took place to protest actions by the administration on issues including diversity, equity, and inclusion; funding cuts; and immigration actions.
  • On April 10, the House passed HR 22, the Safeguard American Voter Eligibility (SAVE) Act, which requires documentary proof of U.S. citizenship to register to vote, by a vote of 220-208. The companion bill, S. 128, is currently in the Senate Committee on Rules and Administration.

 

THE TAKEAWAYS

  • Nonprofits and mutual aid groups are gathering to discuss how we can work collectively to navigate the reduction in federal funds, as well as support each other in interpreting policy changes and the evolving needs of the people we serve.
  • Get in touch with elected officials to let them know what you do in their districts and the impact you have on their constituents.
    • Most state and federal legislators will be home during the recess periods that start today. Some will hold town halls or meet and greet events (check their websites to find out when: U.S. House, U.S. Senate, CA Assembly, CA Senate).
  • Consider adding your name to this call to protect charitable giving housed at the Council on Foundations.
    • The call builds from an article published in Nonprofit Quarterly by Tonya Allen, president of the McKnight Foundation, Deepak Bhargava, president of the Freedom Together Foundation, and John Palfrey, president of the John D. and Catherine T. MacArthur Foundation, calling on philanthropy to stand together in support of the freedom to give.
  • With markets shifting rapidly, it’s important to keep a long-term vision in focus and recognize that philanthropy is better equipped to bear market risk than most nonprofits and communities. Amid the uncertainty, philanthropy can continue to support efforts that strengthen community resilience and protect those most vulnerable.

 

RESOURCES

  • The Nonprofit Institute at the University of San Diego continues to publish results from its biweekly survey of nonprofits to track the impacts of federal funding and policy changes.
    • Last week, the majority of respondents (63%) said they are engaging in collaboration to address recent federal actions. Nearly one-third (30%) are interested in collaborating but lack the knowledge or bandwidth to do so.
  • Read this Tariff and Market Analysis Update published by Exponent Philanthropy on April 4, which supports lean-staffed philanthropy.
  • Track higher education impacts in our region through the links in this statement from UCSD Chancellor Pradeep Khosla on how the university is addressing financial and policy uncertainty. San Diego State University and the University of San Diego also published overviews of their approaches and the resources available.
  • Explore the FY2025 Senate Budget resolution broken down by the Bipartisan Policy Center.

 

Talk to you soon,

Megan Thomas
President & CEO
Catalyst of San Diego & Imperial Counties