Biweekly Policy Briefing: Issue XXXVII

Hello again.

This past Wednesday, nearly 200 funders, community partners, and elected officials gathered to celebrate Catalyst’s 50th anniversary. It was a meaningful evening of joy and connection, and a timely reminder that none of us does this work alone. We are always stronger together.

Whether you joined us in the room or support this work from afar, thank you for all you do to strengthen our region. Your partnership, leadership, and commitment matter deeply.

And now, the work continues. Here’s a look at what happened this week. Catch up on previous installments of this briefing here.

THE FACTS

Budgets & Taxes

1. Revisions to IRS Form 990 
   The Treasury Department announced plans April 23 to revise IRS Form 990 for tax-exempt organizations, including clearer reporting on government funding and fiscal sponsorship arrangements. While the stated goal is greater transparency and oversight, nonprofit leaders are weighing the broader implications. Expanded disclosure could improve public understanding of funding flows, while also creating new compliance burdens — particularly for smaller organizations and those serving marginalized communities.
2. DAF fallout from Southern Poverty Law Center indictment
   After the Trump administration filed an indictment against the Southern Poverty Law Center, several donor-advised fund providers — including Fidelity Charitable, Vanguard Charitable, and Schwab DAFGiving360 — froze grants to the organization. Many in philanthropy view the move as a concerning precedent. A coalition of philanthropy networks is hosting a call for DAF holders on May 14 at 4 p.m. Pacific to discuss organized response efforts and has circulated sign-on letters (one for public foundations and another for private foundations) urging providers to reverse course.
3. The aftermath of the partial government shutdown 
   Congress ended the partial government shutdown last week, and House Republicans approved a budget resolution April 29 that unlocks a fast-track process to pass up to $75 billion in funding for immigration enforcement agencies, ending the 76-day Department of Homeland Security shutdown. Agencies are now working to recover from delays and funding disruptions that may have lasting operational effects.
4. Lawmakers continue to weigh cuts to housing, healthcare, and food assistance
   California lawmakers continue weighing budget proposals that could include cuts to housing, health care, and food assistance programs, while State Senate leaders have advanced alternative proposals that would raise new revenue to preserve services. For nonprofits and low-income Californians, the debate reflects broader questions about how the state addresses budget shortfalls amid ongoing affordability pressures, food insecurity, and rising health care costs.
5. $1B in security upgrades to White House proposed
   A Republican-backed bill would allocate $1 billion for security upgrades connected to the White House ballroom project, potentially shifting costs to taxpayers despite earlier claims the project would be privately funded.
6. Potential cuts to libraries and recreation centers outlined for San Diego 
   San Diego officials outlined potential cuts April 27 to libraries and recreation centers, including reduced branch hours and the possible closure of eight recreation centers under several budget scenarios.
   • As a reminder, the City of San Diego’s proposed Fiscal Year 2027 budget is available now, and there are numerous opportunities for residents and organizations to provide input on how proposed cuts could affect their communities. ​​​​​​

Trans Youth

1. Title IX investigation into Smith College
   The U.S. Department of Education opened a Title IX investigation into Smith College on May 5 to examine whether admitting transgender women violates federal sex-discrimination law. The investigation signals broader federal scrutiny of institutional policies related to transgender inclusion and could have implications for admissions, housing, athletics, and campus climate protections beyond Smith College.
2. Rady Children’s gender-affirming care to continue (for now)
   A San Diego judge ruled that Rady Children’s Hospital must continue providing gender-affirming medical care for minors through June 24, while allowing the hospital to stop performing related surgeries. The order preserves access to care for now, but the case underscores how ongoing federal and legal pressures continue to create uncertainty for LGBTQ+ youth and their families.

Immigration

1. Court rules against ICE policy
   A federal appeals court ruled April 28 against ICE’s policy of mandatory detention without bond for many immigrants, finding the policy relied on an unprecedented interpretation of federal law and raised constitutional concerns. Immigrant-rights advocates say the ruling reinforces due process protections for individuals facing prolonged detention.
2. Regional detention data paints sobering picture
   At the request of San Diego congressional leaders, ICE released regional detention data showing approximately 16,400 removals and 10,500 arrests in San Diego and Imperial counties in the past 14 months. Of those arrests, 1,454 occurred at or near sensitive locations such as schools, hospitals, and places of worship.
3. Countywide care and response for immigration 
   San Diego immigration advocates announced Thursday an unprecedented collective effort, bringing together more than 20 nonprofit and community-based organizations to coordinate a countywide system of care and response for immigrants. Informed by months of research and direct community involvement, and seeded by funding from Alliance Healthcare Foundation, the coalition has organized into regional response hubs across the county, connecting direct community support efforts with broader policy and systems-change strategies. To learn more, please connect with me.

Redistricting

1. Redistricting efforts accelerate
   The Supreme Court ruled May 4 that Louisiana’s congressional map must be redrawn immediately, accelerating redistricting efforts ahead of the midterm elections and potentially reshaping congressional representation.
   • The ruling rests on the view that communities of color, especially Black communities, have achieved electoral power and therefore no longer need the Voting Rights Act “Section 2” protections.
   • The ruling also narrowed the Voting Rights Act by raising the threshold for proving discrimination in redistricting cases, making future legal challenges to electoral maps more difficult.
   • Louisiana Gov. Jeff Landry had suspended U.S. House primary elections following the ruling, prompting multiple lawsuits challenging the executive order.
   • Republican governors in Tennessee and Alabama also called special legislative sessions May 1 to consider redrawing congressional maps.
   • In Florida, Republicans advanced a redistricting proposal April 27 that could shift up to four U.S. House seats toward the GOP, with Democrats signaling plans for legal challenges.
   • California’s Prop 50 shifted the landscape in local elections. Rep. Darrell Issa will retire after two decades in office, leaving the race for District 48, covering North and East San Diego County, wide open with a new map favoring Democratic candidates.

Voting

1. Advocacy against SAVE act at Congress
   Democratic members of Congress warned May 4 that the SAVE Act could create additional barriers to voting by requiring proof of citizenship documentation, potentially affecting millions of eligible voters. Supporters describe the bill as an election-integrity measure, while voting-rights groups argue it could disproportionately affect eligible voters who may not have ready access to required documents, including married women whose names have changed, young voters, low-income voters, rural residents, and naturalized citizens.
2. Three initiatives move toward November ballot
   Three California ballot initiatives — including proposals related to a wealth tax, expedited environmental review, and new union spending rules — have submitted signatures for verification ahead of the June 25 deadline to qualify for the November ballot.

Local

1. First report under new ordinance to be released by Chula Vista 
   Chula Vista will release its first report on police interactions with federal immigration agents by the end of June under a new ordinance requiring regular public disclosures. The ordinance requires written reporting when local police interact with immigration authorities, providing greater public visibility into how local resources intersect with federal enforcement activities.
2. El Cajon files lawsuit challenging state sanctuary law
   The City of El Cajon filed a lawsuit April 29 against California Attorney General Rob Bonta challenging the state’s sanctuary law, arguing it conflicts with federal law. State officials maintain the law supports public safety by encouraging immigrant communities to cooperate with local law enforcement without fear of deportation.
3. Officials break ground on Tijuana wastewater upgrades
   U.S. and Mexican officials broke ground April 27 on upgrades to Tijuana’s wastewater system, including new pump stations and pipelines aimed at reducing sewage flows into the Tijuana River. The upgrades are important, but accountability will depend on whether the projects actually reduce flows and whether longer-term infrastructure commitments stay funded.
4. County approves $2.75M in arts and culture funding
   The County of San Diego approved a $2.75 million investment in arts and culture Wednesday, including support for cross-border collaborations and seed funding for the new Black Arts & Culture District.
   • Supervisor Monica Montgomery Steppe described the investments as important economic drivers, while Supervisor Jim Desmond — though supportive of the arts — raised concerns about prioritizing funding amid infrastructure and public safety needs in unincorporated communities.
   • Though unrelated, the announcement stands in contrast to the City of San Diego’s proposed $12 million cut to its arts budget.

Other

1. COVID-19 and shingles vaccine data blocked
   The FDA blocked publication of several studies finding that COVID-19 and shingles vaccines were safe, despite research involving millions of patient records showing serious side effects were rare. Public health experts warn that suppressing safety research could deepen public distrust and complicate evidence-based vaccine policy discussions.