Catalyst Weekly Policy Briefing Issue VIII: Shuttering and Shifting

Hello again.

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

THE FACTS

Key economic programs reduced to “minimum required levels” 

The administration instructed the elimination of non-statutory (i.e., not required by Congress) elements of governmental entities and a reduction of their statutory functions to the minimum required levels. The March 14 order (Continuing the Reduction of the Federal Bureaucracy) affects numerous critical groups, including those working for:

• Economic stability: The Community Development Financial Institutions Fund provides loan dollars and oversees New Market Tax Credits, and the Minority Business Development Agency fosters growth for minority business owners.
• Homelessness: The US Interagency Council on Homelessness, which coordinates across 19 agencies and entities to support a national approach to eliminating homelessness.
• Knowledge and learning: The Institute of Museum and Library Services, which funds critical programs at places where communities gather to learn and understand.

By today (March 21) the head of each entity must report their full compliance to the Office of Management and Budget and explain what must statutorily be kept.

Disaster preparedness and response left to state and local governments 

Agencies are directed by the March 19 executive order, Achieving Efficiency Through State and Local Preparedness, to seek ways to move preparedness and response to states and local governments. This order appears designed to reduce or eliminate the Federal Emergency Management Agency (FEMA).

• ​​​FEMA directed more than $20 million to over 2,000 households following the San Diego County floods in January 2024.
• One of the first acts of the administration was to eliminate funding from FEMA for refugee resettlement. This has resulted in approximately 1,000 individuals in our region no longer receiving the federally funded support that was promised to them. This includes refugees from around the world and Special Immigration Visa holders from Afghanistan. Nonprofit organizations hosting these individuals are seeking approximately $1 million to address the cancelled funding. If you are interested in learning more, please contact us.

Department of Education eliminated to the “maximum extent permitted by law” 

On Thursday, the President signed an executive order (Improving Education Outcomes by Empowering Parents, States, and Communities) calling for the Secretary of Education to shutter the Department of Education, stating in the order “to the maximum extent appropriate and permitted by law, take all necessary steps to facilitate the closure of the Department of Education.”

• Though most public education funding comes from state and local governments, federal grants are still vital, including paying for teachers of children with special needs, funding for arts programs, and replacing outdated infrastructure.
• The Department of Education also manages the federal student loan program and investigates claims of discrimination. Previous workforce cuts nearly eliminated the legal staff in charge of that investigatory work.
• In mid-February, Poway Unified School District was notified that a $1.2 million grant to support to students with disabilities had been cancelled “for convenience.” The program had launched just a month prior, in January 2025.

Catalyst recently brought together a group of local funders to meet with the Superintendent of San Diego Unified School District to discuss their budget. If you are from any of the other 37 districts in Imperial and San Diego Counties and would like to share updates, or would like to be connected to this group, please contact Director of Programs and Learning Maryan Osman.

Judicial branch under scrutiny 

• As a steady flow of lawsuits make the courts the testing ground for actions by the executive branch, judges have become the target of calls for impeachment from the President and members of Congress. Judges point to this as an unnecessary, uncalled for, and ineffective strategy to advance the administration’s agenda.
• Supreme Court Chief Justice John Roberts commented on one case saying that, “impeachment is not an appropriate response to disagreement concerning a judicial decision.”

TAKEAWAYS

• If you fund a museum or library, homelessness service providers, or give loans to low and moderate income communities, check in with your contact.
• With the changes in federal departments, make sure you know who represents you in the State legislature and in your county and city. Give their office a call to make your voice heard.
• Register for our 100 Days Funder Briefing with Philanthropy California. This virtual session on March 25, 10:00 am will spotlight how organizations are adapting their strategies in response to new challenges and emerging opportunities.
• Access the action center from The Opportunity Finance Network for information about alternative lending and ways to advocate for the imperiled CDFI Fund.

RESOURCES

• Register for Funders Committee for Civic Participation’s April 1st Virtual Census Day Program; Fireside Chat w/ Former Director of Census Bureau Rob Santos and Mayor of Savannah, GA Van Johnson.
• Read Funders Together to End Homelessness’ A Call to Bold Action issued last week, saying we “must consider the deep, irreversible implications and risks current federal actions will have for our communities over the potential risks funders may face.”
• Review the Policy Changes Affecting Education and Philanthropy page from Grantmakers for Education for policy resources and upcoming events on how policy changes are affecting education funding.

Talk to you next week,

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