Catalyst Biweekly Policy Briefing Issue XXII: Shutdown & Scrutiny

Hello again.

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

THE FACTS

GOOD NEWS FIRST: SAN DIEGO UNITY FUND ANNOUNCED

• On Thursday, Catalyst members the San Diego Foundation, Price Philanthropies, and the Prebys Foundation announced a precedent-setting $70 million commitment to the United for San Diego campaign. The initiative aims to offset a projected $300 million loss in federal funding for our region. The three founding organizations are urging other foundations and community members to contribute to the San Diego Unity Fund which supports grants focused on preventing homelessness, promoting food security, and ensuring access to healthcare.

FEDERAL BUDGET

• A shutdown looms if a budget deal isn’t made by September 30th. On Friday, the Senate rejected both a House-passed resolution to extend funding through November 21 and a Democratic proposal to extend funding through October 31.
  • The House does not intend to meet again until after the funding deadline has passed, leaving negotiations mainly in the Senate’s hands. The Senate is expected to return for a vote on September 29, the day before the deadline.
  • The administration has warned agencies to prepare for mass staff cuts if a shutdown occurs, a departure from past practice. Typically, during a shutdown, non-essential government workers are furloughed until a deal is reached, then they return to work with back pay.
  • Shutdowns have real costs. The three most recent shutdowns (2014, 2018, 2019) cost taxpayers nearly $4 billion and the equivalent of 56,000 years of lost productivity. Federal workers deemed essential are required to work without pay until funding is resumed, leading to increased rates of absenteeism (like calling in sick) and service disruption.
  • While mandatory programs (such as Medicare and SNAP) still function during a shutdown, delays and reduced staffing can disrupt benefits, public transit, food and water inspections, and national park operations.
• San Diego County supervisors will vote Tuesday on whether to establish an ad hoc Subcommittee on Sustainable Fiscal Planning to create a plan that maintains essential county services during times of financial upheaval, such as funding cuts tied to HR 1 or the looming government shutdown.
• Two San Diego community colleges will no longer receive promised federal grants for programs serving Asian American and Native American Pacific Islander students. Additional cuts to San Diego community college programs and San Diego State University programs serving Hispanic populations are expected to follow, as the Department of Education reduces funding for Hispanic-Serving Institution grants.
• The Department of Education is ending a number of minority-serving institution grant programs nationwide. California currently receives more than a quarter of these grants, and hundreds of colleges and universities across the state stand to lose funding.

Implications for funders: Both a federal shutdown and reductions in minority-serving institution grants could significantly strain nonprofit and educational programs that support underserved communities in our region. Funders should be prepared to anticipate gaps in services, support emergency operations for community-based organizations, and consider targeted investments in programs serving students of color and low-income populations to help mitigate the impact of disrupted federal funding.

 

HEALTHCARE

• Over the past week, several recommendations from the Trump administration have caused concern or confusion among healthcare professionals and organizations.
  • The CDC voted against recommending the combined Mumps, Measles, Rubella, and Varicella (MMRV) vaccine for children under 4 but tabled a vote on delaying newborn hepatitis B shots. The CDC now recommends splitting the MMRV into two separate shots—one for mumps, measles, and rubella, and one for varicella (the virus that causes chicken pox)—due to a slightly higher risk of febrile seizures with the combined vaccine. About 85% of children already receive the vaccine as two shots and no new studies prompted the review, leaving many healthcare organizations questioning the rationale.
  • The advisory committee also revised the recommendations for COVID-19 vaccine guidance, shifting from a broad recommendation to one based on shared clinical decision-making. Individuals seeking vaccination must now consult a physician, and the committee did not issue a prescription-based recommendation. The switch could cause confusion over who should get the vaccine and limit access for those without insurance or a primary care physician.
  • ​​​​​On Monday, President Trump announced that the FDA recommends pregnant women avoid taking acetaminophen (most commonly known under the brand name Tylenol) due to a purported risk of autism. The American College of Obstetricians and Gynecologists (ACOG) called the comment irresponsible and unsupported by scientific evidence.

Implications for funders: These developments highlight growing uncertainty in public health guidance. Conflicting or unclear recommendations can disrupt vaccination efforts, delay care, and increase the need for community-based organizations and nonprofits to support access, education, and outreach – particularly for vulnerable populations.

 

NONPROFITS & FOUNDATIONS

• On September 22, President Trump issued Designating Antifa as a Domestic Terrorist Organization, an executive order that calls for all federal departments and agencies to use all available resources to “investigate, disrupt, and dismantle” illegal operations conducted by Antifa and prosecute any organizations providing material support to them.
  • The United States does not actually have a legal mechanism for such a designation and nonviolent expression of extremist views is protected as free speech, likely setting up a legal challenge over the president’s authority.
  • Antifa is not a formal organization but an ideology and movement meaning “anti-fascist.” It is unclear whom or what the executive order is targeting, or what qualifies an individual or group as belonging to Antifa.
• The targeting of Antifa goes along with a request by Rep. Roy Blunt earlier this month to form a select committee to investigate “the money, influence, and power behind the radical left’s assault on America and the rule of law.” This proposal calls for inquiries into progressive organizations and funders, specifically naming George Soros and the Wren Collective.
  • Following these developments, U.S. attorneys in several states have been directed to investigate the philanthropic network of the Open Society Foundations, George Soros’ primary entity.
  • The foundation responded publicly, saying an investigation would be an attempt to undermine the First Amendment protections for free speech.
• In addition to targeting organizations that oppose the administration, the president criticized TV networks, suggesting licenses could be revoked. After FCC Chairman Brendan Carr suggested late-night host Jimmy Kimmel be suspended, the network briefly did so, sparking public outrage. Kimmel was reinstated Tuesday, and Disney shareholders are now seeking internal documents to determine whether political considerations improperly influenced corporate decisions.

Implications for funders: These actions signal increased scrutiny of nonprofits, foundations, and philanthropic networks that do not align with administration priorities. Funders should monitor compliance, transparency, and potential impacts on programs they support. 

LOCAL IMMIGRATION POLICY

• Vista and Oceanside have passed measures to limit local cooperation with federal immigration enforcement. While the details of each policy are a little different, both aim to make residents feel safer by requiring judicial warrants for ICE officials to access city property that is not open to the public.
• San Diego Councilmember Sean Elo-Rivera developed the Due Process and Safety Ordinance, a set of legal guardrails designed to protect civil rights and limit city cooperation with federal immigration enforcement. The ordinance is expected to go before the City Council in mid-October with broad support from community groups. It is intended as a model of safety that could be replicated in cities and counties across the region and state.

TAKEAWAYS & RESOURCES

• Connect with grantees about plans for a potential shutdown and how their programs and community members may be affected: Check out the National Council of Nonprofits preparedness guide for shutdowns.
• Don’t miss your last chance to register! Join colleagues at Catalyst’s 2025 annual conference on Friday, October 3, in National City. Bright Spots will explore the bold leadership and collective action that is making a difference in our communities in the face of tremendous challenge.
• Join our Southern Border Region delegation to the CalNonprofits policy conference in Los Angeles on November 5. Nonprofits and funders from San Diego and Imperial Valley will connect in advance, attend the conference, and then debrief on what we learned and how to activate collectively. Let us know if you want to join us. (You must separately register for the conference.)
• ​​​​​Educate yourself on ballot measure engagement: There is a ballot measure special election in November. Before engaging in advocacy, make sure you know all the rules.

Talk to you next week,

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