Three federal developments are affecting the nonprofit sector right now. Below is a summary of each, along with ways to get involved. For more detail, see the full analysis from our partners at the National Council of Nonprofits (NCN).
Urge Congress to Block OMB’s Proposed Grantmaking Regulation
In September, Congress enacted bipartisan legislation to temporarily block the administration from finalizing and implementing a government-wide proposal from the U.S. Office of Management and Budget (OMB) to change federal grantmaking. The temporary delay followed nearly 500,000 public comments, the majority of which opposed the proposal. For more details, see NCN’s chart of the proposed major provisions.
When Congress returns to Washington after the midterm elections, it will have four legislative weeks to decide whether to continue blocking the proposed rule.
Nonprofits can take action in three ways:
1. Sign the national letter urging Congress to permanently block the proposed changes to federal grants. Nearly 2,000 organizations nationwide have already signed.
2. Call or email your Members of Congress, both Republicans and Democrats, and share how the proposed changes could affect the work you do.
3. Mark your calendar for a Day of Action on November 10. Join advocates across the country by contacting your Members of Congress and posting on social media.
NCN’s shared strategy document includes talking points, a list of congressional targets, and other resources.
Protect a Fair, Accurate, and Complete 2030 Census
The U.S. Constitution requires a census every 10 years to count all people living in the United States. The results help determine each state’s number of seats in the U.S. House of Representatives and guide the distribution of trillions of dollars in federal funding to communities. Nonprofits, governments, and businesses rely on that funding to meet community needs and deliver services.
On September 10, the U.S. Census Bureau published a proposed rule that would significantly change how the 2030 Decennial Census counts people and collects demographic data. If implemented, the changes could affect the people and communities nonprofits serve every day. They could also limit the demographic information nonprofits, governments, and businesses use to understand and respond to changing community needs.
Get involved:
• Submit a public comment using NCN’s comment guide, which includes talking points, a template, and submission instructions. Comments are due October 13, 2026.
• Sign NCN’s national letter on the proposed changes.
• Share these resources with your networks so nonprofits stay informed about federal regulations affecting their communities.
White House Announces Pocket Rescissions
On Friday, September 25, President Trump announced “pocket rescissions” totaling $810 million in previously appropriated funds. The affected agencies are the Departments of Health and Human Services (HHS), Education, Housing and Urban Development (HUD), and Justice (DOJ). The largest single item was $567 for immigration and refugee services within HHS. The package also includes funding for programs related to foreign students, climate change, minority business development, and diversity, equity, and inclusion initiatives.
The administration cited the Impoundment Control Act as its authority, the same law it used last year to rescind $4 billion in foreign aid. The legality of pocket rescissions is contested. Senator Susan Collins (R-ME), Chair of the Senate Appropriations Committee, said the Government Accountability Office “has concluded that pocket rescissions are unlawful and not permitted by the Impoundment Control Act.” When the Supreme Court allowed the 2025 rescissions to proceed, it noted that its order should not be read as a final determination on the merits.
Congress normally has 45 days to review a rescission proposal. A formal response may be difficult, however, because the fiscal year ends September 30 and the House is out of session until November. We will continue to monitor developments and share updates.