Biweekly Policy Briefing Issue XXXV: Rulings & Recess

Hello again,

Philanthropy’s advocacy voice was strong this week as a delegation of two dozen foundation representatives from across California joined us in Sacramento for Philanthropy CA’s annual Sacramento Day. We met with 24 legislative offices, along with the governor’s and secretary of state’s offices, and state agencies focused on climate change, disaster recovery and resilience, data, and nonprofit partnership.

This year’s visit was especially timely amid the May budget revision and what’s at stake for the census, elections and democracy, safety-net programs, immigration, and climate and disaster resilience. We’re grateful to all who joined us—and to the officials we met with—as we explored how philanthropy and government can work together to support our communities.

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

BUDGETS & TAXES

• Two weeks ago, the House rejected the Senate plan to end the partial shutdown and fund most of the Department of Homeland Security. Both chambers then began a two-week recess without a deal in place.
  • On April 3, President Trump signed a memo directing that all Department of Homeland Security employees be paid during the shutdown, providing relief to workers who had gone nearly two months without pay.
  • The Transportation Security Administration (TSA) has begun issuing some back pay, though staffing shortages and financial strain persist.
  • The House came back from its two-week spring recess early, holding pro forma sessions on Wednesday and Thursday. Budget talks are likely to begin again next week.
• On Monday, OpenAI released a blueprint for taxing artificial intelligence, outlining recommendations to address the technology’s economic impact, including workforce disruption and long-term economic shifts.
  • The plan proposes a public wealth fund and taxes tied to automated labor to offset potential government revenue losses. It also calls for expanded workforce training, growth in human-centered sectors, and guardrails for government use of AI.
• The president has called for a budget that includes record military spending, proposing to offset the increase with cuts to domestic programs. These include funding for disaster response, training new teachers, researching cures for diseases, developing clean energy technology, and programs serving minority groups.

Implications for funders: Budget uncertainty at the federal, state, and local levels may increase pressure on safety-net systems and the nonprofit organizations that deliver essential services. Demand for support related to food assistance, housing stability, health care access, and other basic needs is likely to rise. Philanthropy can help stabilize community-serving organizations during periods of fiscal disruption and support coordination among providers as government funding fluctuates.

BORDER & IMMIGRATION

• The Department of Homeland Security must restore status to immigrants after a federal judge ruled last month that the agency acted unlawfully in terminating parole for nearly 900,000 migrants who entered the United States through the CBP One app, citing failure to follow required legal processes.
  • The ruling reinstates immigration status for individuals who entered between May 2023 and January 2025, temporarily protecting them from deportation.
  • The program had allowed migrants waiting in Mexico to schedule entry at ports of entry and remain in the United States while their asylum cases were pending.
• Reps. Sara Jacobs and Mike Levin visited the Otay Mesa Detention Center on April 2 following complaints about conditions. Their visit comes after multiple reports of members of Congress being denied access during oversight attempts. Jacobs and Levin plan additional oversight visits.
• As of April 2, a federal judge ruled that Border Patrol agents continued unlawful stops in violation of a prior court order.
• Transfers from San Diego County jails to Immigration and Customs Enforcement increased in 2025, with 83 individuals transferred—nearly triple the prior year—according to data shared at a public forum last week.

Implications for funders: Funders are encouraged to connect with us about an upcoming briefing on coordinated efforts among immigrant-serving organizations providing legal services, case management, community safety, and basic needs support. Demand is likely to increase as families disengage from systems they previously relied on.

THE COURTS

• A federal district court dismissed IRS v. National Religious Broadcasters, which sought approval of a settlement that would have undermined the Johnson Amendment. The ruling preserves the longstanding federal law prohibiting 501(c)(3) nonprofits from endorsing or opposing political candidates, protecting the sector’s nonpartisan status.
  • The court found it could not approve the settlement because it involved the assessment or collection of taxes, as plaintiffs sought to maintain tax-exempt status. The decision is expected to be appealed.
  • The dismissal preserves the sector’s nonpartisanship, a win for charities and the communities they serve. To learn more, read a statement from six national nonprofits about the dismissal.
  • A federal judge ruled Thursday that the Defense Department cannot impose new press restrictions at the Pentagon, finding the revised rules violate constitutional protections and improperly limit journalists’ access.
• In San Diego, the Asian community is reflecting on a Supreme Court case challenging the precedent of birthright citizenship, with a ruling expected this summer.

LOCAL

• Proposed changes to the San Diego County charter include an ethics commission, independent oversight roles, and term-limit reforms. Supervisors are set to vote April 21 on whether to place the measure on the November ballot.
• Plans for a large data center in Imperial County cleared a key land-use hurdle after supervisors approved the project.
  • The hearing drew a significant public turnout, with more than 50 speakers—most of them passionately opposed.
  • The project has been marked by allegations of disregarding both community members and city representatives. Concerns include energy use, water demand, environmental impacts, and community engagement.
• An ordinance limiting collaboration with federal agencies advanced in San Diego on April 7. It would require judicial warrants for access to nonpublic city properties and now awaits the mayor’s signature.
• Federal changes to CalFresh eligibility have gone into effect in the region, reducing food assistance for nearly 13,000 local residents and increasing demand for food distribution and support services. The county has issued guidance for those affected.

OTHER

• The U.S. Department of Agriculture announced a sweeping restructuring of the Forest Service, relocating its headquarters from Washington, D.C., to Utah and consolidating 57 research stations into a single organization in Colorado. Critics say the move could weaken research capacity and lead to a significant loss of institutional knowledge as employees decline to relocate.
• A new executive order directs the secretary of homeland security to provide states with a list of eligible voters based on citizenship. It also involves the U.S. Postal Service in designing and regulating official election mail, including mail-in and absentee ballots. The move is expected to face legal challenges.
• Trump has fired Pam Bondi, with Deputy Attorney General Todd Blanche now serving as acting attorney general. The administration said Bondi will transition to the private sector, though no specific reason was provided. The move follows reported frustrations with her performance and the recent removal of another Cabinet official, Kristi Noem.

Takeaways & Resources

• Grantmakers are invited to sign on to a joint public comment opposing a rule that would require families with an ineligible household member to either remove that person or risk eviction due to loss of housing assistance.
• The letter is led by the Fund for Housing and Opportunity, Funders Together for Housing Justice, and Grantmakers Concerned with Immigrants and Refugees.
  • As a reminder, philanthropy — including private foundations — can submit public comments, as doing so does not constitute lobbying under federal tax law. The sign-on closes Friday, April 17.
• Read a recap of the 2026 Foundations on the Hill event, where more than 700 foundations met with federal lawmakers to advocate for community priorities and policies that support charitable giving.
• Budget season is here! If you are a resident of the City of San Diego, you can take a budget survey here to share your priorities with the city. You can also share it with grantees and partners to provide input. Explore other opportunities to get involved in shaping the city’s budget here.
• The Council on Foundations has released a guide for funders on the Iran War and how to support affected communities.
• Registration is open for Catalyst’s 50th anniversary event on Wednesday, May 6. Please join us to raise a glass, share a story, and celebrate five decades of doing the work together.

Talk to you soon,

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