March 25, 2025
| WEBINAR ANNOUNCEMENT FROM CONGRESSIONAL QUARTERLY: The federal budget process is off-script, and uncertainty is the only guarantee. With dueling congressional plans, a pending White House proposal, and shutdown threats, one thing is clear—your organization can’t afford to wait and see what happens. Join our live webinar tomorrow, March 26, at 2 p.m. ET as CQ and Roll Call reporters cut through the noise, decode the latest budget moves, and arm you with strategies to stay ahead, no matter what happens next. |
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New Report from the Commonwealth Fund
| March 25, 2025 |
| Potential federal budget cuts to Medicaid health coverage and to food benefits through the Supplemental Nutrition Assistance Program (SNAP) could trigger severe economic effects across the United States, including 1 million jobs lost and a $113 billion decline in states’ gross domestic products (GDPs), according to a new report from the Commonwealth Fund and the George Washington University Milken Institute School of Public Health. The report, How Potential Federal Cuts to Medicaid and SNAP Could Trigger the Loss of a Million-Plus Jobs, Reduced Economic Activity, and Less State Revenue, provides a state-by-state analysis of the economic toll of funding cuts discussed by some policymakers. Among the key findings:Potential Medicaid cuts would shrink state GDPs by an estimated $95 billion in 2026, eliminate 477,000 jobs, and reduce state and local tax revenues by $7 billion.Potential SNAP cuts would reduce state GDPs by an estimated $18 billion in 2026, wipe out 143,000 jobs, and decrease state and local tax revenues by $1.8 billion. |
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RESOURCES FROM THE LAWYER’S ALLIANCE
FAQs for Recipients of Federal Funding Regarding Required Certifications
Over the past month, many nonprofits that receive federal funding have been told that in order to continue receiving federal funds, they must certify that they comply with executive orders or with federal anti-discrimination laws. This Legal Alert, prepared by Lawyers Alliance and New York Lawyers for the Public Interest, explains the current state of litigation around the certification requirements and lays out some practical steps a nonprofit can take to reduce organizational risk around signing such a certification.
Click here to read the Legal Alert.
Consult our Federal Legal Compliance webpage for additional resources relevant to recent federal developments.Finances and Fundraising: Accessing Cash
Uncertain economic times in the wake of the COVID-19 pandemic and fiscally challenging conditions may have left many nonprofits feeling strapped for cash. Even nonprofits with sufficient reserves or solid revenues may experience difficulties with cash flow from time to time and for many reasons, including delayed or deferred government contracts or grants, unusual one-time expenses, or restrictions on the use or management of certain funds. This Legal Alert will explore several ways nonprofits can access funds and get cash flowing again.
Click here to read the Legal Alert, part of our Program Preservation, Evolution, and Financial Change initiative.———————————-
New York’s budget could go into overtime amid federal uncertainty
Gov. Kathy Hochul says a special session could be an option to address Trump cuts.By: Nick Reisman | 03/24/2025 03:09 PM EDT
ALBANY, New York — A legislative special session later this year could address likely federal spending cuts, Gov. Kathy Hochul said for the first time Monday ahead of an April 1 budget deadline.
New York lawmakers and Hochul are racing this week to finish work on a $252 billion state budget — a plan the governor introduced in January and which does not take into consideration efforts in Washington to slash health care and education.
The Democratic governor has been eager to blame New York House Republicans for the expected cuts, but she acknowledged to reporters Monday that the state Legislature could return after June 12, which is the final scheduled day of the legislative session.
“Nothing prohibits us from coming back in a special session to deal with anything that comes our way from the federal government,” Hochul said during the off-topic portion of her news conference.
Democratic lawmakers have quietly discussed the likelihood of returning to Albany — potentially in September — to square the approved state budget with federal-level actions that could include deep spending cuts to health care and education funding.
Hochul has met twice with President Donald Trump this year to discuss mass transit funding and energy policy, though neither meeting yielded any definitive results.
But New York lawmakers want to give the Democratic governor more leverage over the Republican president. Sen. Jessica Ramos and Assemblymember Micah Lasher unveiled legislation today that would allow the state to withhold billions of dollars in payments to the federal government if Congress approves any cuts to New York.
“If the federal government thinks they can cut off funding to New York state, they’ve got another thing coming,” Lasher said. “This legislation will deter bullying by Donald Trump.”
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FEDERAL UPDATE
Senate Republicans are looking to adopt a new budget blueprint by April 11, giving Republicans three weeks to get a budget resolution through both chambers.
Majority Leader John Thune told reporters that he wanted to “get it done this work period,” our Jordain Carney reports. Speaker Mike Johnson has also said he wants a negotiated budget measure — which would unlock the GOP’s tax, border, energy and defense bill — through the House in the same period.
While this ambitious plan is drawing skepticism from the GOP, Senate Republicans are under pressure to move faster on their legislative agenda, which includes reaching an agreement on a tax plan. To that end, Thune, Johnson and the heads of the Senate tax writing committees are huddling today at the White House with Treasury Secretary Scott Bessent to iron out their competing budget plans.
Remember: Both chambers have to pass the same budget measure to move forward on drafting their legislation. Therefore, they both have significant work to do to agree on a budget resolution.
House Speaker Mike Johnson (R-Louisiana), Senate Majority Leader John Thune (R-South Dakota) and key committee chairs are expected to meet toDAY TO work out their differences over how to deliver on Trump’s priorities in the federal budget. With Trump’s blessing, the House has been working toward passing “one big, beautiful bill” combining his priorities, while the Senate initially conceived of a two-bill strategy that it has backed away from after the House budget resolution passed.
Negotiations between the two chambers made little progress over last week’s congressional recess. At the same time, some Republicans in Congress want to quickly move forward on new tax cuts before a potential recession, three GOP tax advisers told our colleague Jacob Bogage.
House Republican leaders released a statement yesterday morning urging the Senate to get on board with their approach and take up their budget blueprint for the single-bill strategy, saying, “The American people gave us a mandate and we must act on it.”
Johnson sought to downplay any tensions with Senate Republicans hours after the statement came out.
- “We are one team,” Johnson told reporters at the U.S. Capitol. “There is no daylight between us. I know the media is trying to portray this as some sort of big dispute. It’s not. We have tremendous respect … for the senators over there who are trying to do the same job that we are.”
In the upper chamber, Thune’s response was also diplomatic, saying that the House and Senate sides need to come together to draft a bill that can pass both chambers. He expressed confidence in adopting a budget blueprint by April 11, telling reporters yesterday, “I want to get it done, this work, period.”
- “We have been hard at work on legislation to extend the tax relief we passed during President Trump’s first term and to make a transfer investment in our border, a national security,” he said on the Senate floor yesterday. “And those efforts will accelerate over the next three weeks.”
The clock is ticking. Johnson has said he wants to put the reconciliation bill on the House floor by Easter, which falls on April 20 this year. The House and Senate are in recess the week before.
Johnson acknowledged the Easter timeline yesterday but told reporters: “If it doesn’t happen [by then], it’s not the end of the world. We are doing this quickly.”
The tensions among Republicans are playing out as Democrats continue to warn that the House plan would dramatically cut Medicaid. It was a warning that House Minority Leader Hakeem Jeffries (D-New York) emphasized during a news conference hours after House GOP leaders released their statement.
“Earlier today, every single House Republican leader tripled down on their harmful budget, which will hurt children, hurt families, hurt seniors, hurt veterans and hurt everyday Americans,” Jeffries said.
Senate Minority Leader Charles E. Schumer (D-New York)will speak with his caucus at lunchtime tomorrow to discuss the reconciliation process. Republicans won’t need Democratic votes to push forward, but Democrats are not interested in making this easy for the majority party.
Schumer will offer technical training on the process and discuss Democratic messaging around it, according to a Senate aide familiar with the strategy, who spoke on the condition of anonymity to share plans they were not authorized to discuss publicly. Democrats might be able to exploit an existing rift in the Republican conference over the House plan’s maneuver to make the tax cuts extension appear to be free, the staffer said.–