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Biweekly Policy Briefing Issue XXV: High Stakes

Hello again.

It’s great to be back with you. My sabbatical was a gift of rest, snuggles with my newborn nephew, and plenty of joy. I’m grateful to our Catalyst team for their thoughtful leadership during my time away.

Refreshed and ready, I joined funder and nonprofit colleagues at CalNonprofits’ 2025 policy conference this week. We heard about nonprofits and philanthropy stretching new muscles, including litigation, lobbying, and support for physical security – and succeeding. There’s no blueprint for this, but knowledge is power – so let’s jump in.

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

 

THE FACTS

 

THE SHUTDOWN
  • At the time of publication, the government shutdown continues — the longest in U.S. history. The Senate will vote on a funding measure within hours.
  • As the week concludes, both sides appear closer to a short-term spending deal to reopen the government. Senate Republicans are drafting a bill to fund Agriculture-FDA, Military Construction-Veterans Affairs, and the Legislative Branch. Pressure is mounting to negotiate, but Democrats’ broad wins Tuesday have emboldened some leaders to keep pushing for extended health care subsidies before ending the shutdown.
    • Affordable Care Act (ACA) open enrollment begins SaturdayWithout an extension of the subsidies that are the main holdout for reopening the government, many Americans could see their insurance premiums rise by about 114% on average, affecting 22 million people currently receiving these expiring tax credits.
    • An estimated 125,000 San Diegans will be impacted, and the executive director of Covered California estimates one out of four people will be priced out of coverage.
  • Beginning today, the FAA will cut air traffic by 4% at 40 airports, including San Diego International Airport, due to staffing shortages caused by the shutdown. The reduction is expected to increase over the next week, reaching 10% by November 14 if the shutdown continues. As of this morning, 25 flights at San Diego International Airport had been canceled.
  • On November 1, the Supplemental Nutrition Assistance Program (SNAP), known as CalFresh in California, went dark for the first time in history. A federal judge ordered the administration to find funding, and November benefits have been partially funded. Payments are delayed, leaving many San Diegans facing increased food insecurity as they wait for their delayed (and reduced) benefits to arrive. On Tuesday, the County Board of Supervisors voted to send a letter to the Department of Agriculture demanding the immediate release of contingency reserves to fund SNAP benefits. On Thursday, a federal judge ordered the Trump administration to provide full SNAP funding to states for November by today (Friday). The administration has appealed the decision.
    • Without SNAP funding, hundreds of thousands of people in the border region will face hungerincluding 27% of households in Imperial County and 9% in San Diego.
    • On Sunday, the San Diego Food Bank distributed food to 2,000 families at an emergency food bank. Feeding San Diego also held an emergency distribution over the weekend, serving 1,000 families.
    • Need is also rising in Imperial Valley, where the Imperial Valley Food Bank distributed 300,000 more pounds of food than usual in October, before SNAP benefits were cut.

 

Implications for funders: With the shutdown now in its 38th day, demand for food banks, social services, and mental health support is rising. Funders can help by providing flexible, emergency, or bridge funding to support grantees and local organizations addressing food insecurity and financial stress. Support for navigation and outreach services, like 2-1-1, is also critical to ensure families can access resources quickly and efficiently.

 

ELECTION RESULTS
  • Tuesday’s election delivered sweeping wins for Democrats nationwide, including gains among groups that supported President Trump in 2024, such as Latinos and voters under 30. Many Republican strategists see the results as a sign that cost-of-living concerns are driving voters who feel the current administration has fallen short on its promises for the economy.
  • In Poway, 80% of voters recalled City Councilmember Tony Blain, who immediately resigned. Blain was charged in October with four felonies and a misdemeanor.
  • Californians overwhelmingly approved Proposition 50, the ballot measure to redraw House districts in California to favor Democrats. The measure could add up to five additional seats, offsetting the five seats Texas Republicans gained after their own redistricting earlier this year.
    • San Diego and Imperial Valley voters strongly supported the measure with about 60% voting yes, mirroring statewide results.
    • Just before the election, a Texas federal judge dismissed a case challenging the ballot measure’s constitutionality, brought by Texas representatives and San Diego Congressman Darrell Issa. On Wednesday, California Republicans filed a new lawsuit, alleging the maps were drawn to favor Hispanic voters.
    • California and Texas are not the only states jumping into a redistricting battle over control of the House of Representatives. Ten other states have either redrawn maps or are in the process of doing so.

Implications for funders: Elections with significant partisan shifts can reshape policy and messaging as both winning and losing parties adjust strategies. California’s new districts mean legislators will represent changed constituencies, creating opportunities to engage them and highlight the work being done in the communities they now serve. 

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NONPROFITS & EDUCATIONAL INSTITUTIONS
  • Earlier this year, the Department of Education halted student loan debt cancellations following a lawsuit brought by several Republican-led states. On October 27th, the department announced it would resume much of that debt relief after an agreement between the Trump administration and the American Federation of Teachers. However, the program will not apply to employees of nonprofits deemed to be “aiding and abetting violations of federal immigration law,” organizations involved in medical gender transitions for minors, or entities whose speech the administration considers supportive of terrorist, violent, or discriminatory ideas.
  • The U.S. Senate Judiciary Committee has sent letters announcing a probe of the Bill and Melinda Gates Foundation, the Rockefeller Brothers Fund, and the Ford Foundation to determine how the organizations are complying with tax laws regarding purported grants to the Chinese Communist Party and its allies. The foundations have until November 10 to respond. The Gates and Ford Foundations have initially stated that they comply with all tax laws and that all grants in that region are for charitable purposes.
    • The Gates Foundation funds health, philanthropic infrastructure, and poverty alleviation initiatives in China.
    • The Ford Foundation funds programs that strengthen philanthropy, independent journalism, and U.S.-China relations.
    • The Rockefeller Brothers Fund supports environmental projects in China.

 

Implications for funders: As attacks against philanthropic institutions rise, transparent metrics and proactive storytelling can build trust and counter misinformation. Funders should prepare crisis communications and review legal options in advance, and educate legislators about the work supported in their districts. Having conversations now with staff and board about whether and when you will speak publicly in defense of yourself, colleague organizations, and the sector will help you respond confidently in the future.

 

TAKEAWAYS & RESOURCES

 

Talk to you soon,

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