HRA Federal Policy Newsletter – November 2025
  • November 20, 2025

HRA Federal Policy Newsletter – November 2025 (click for PDF version)

Executive Summary

  • New Public Health Alliance Forms: The newly formed Governors Public Health Alliance is a nonpartisan nonprofit, which includes 14 states and territories: California, Colorado, Connecticut, Delaware, Guam, Hawaii, Illinois, Maryland, Massachusetts, New York, North Carolina, Oregon, Rhode Island, and Washington State. The alliance emerged following recent federal workforce reductions that affected agencies such as the CDC, NIH, and other public health institutions. According to a press release, the alliance aims to share best practices, host briefings with public health experts, and coordinate executive actions governors can take to strengthen public health protections. More information can be found here.
  • Federal Agencies Investigate Nonprofits: According to a Wall Street Journal report, the federal government is reportedly implementing changes at the Internal Revenue Service (IRS) to start criminal investigations into certain nonprofit organizations. The changes follow a presidential memorandum issued in late September directing federal agencies to “investigate, prosecute, and disrupt” nonprofits the Administration believes are linked to domestic terrorism. Members of the House Ways and Means Committee have called for an inquiry into these reports.
  • At the same time, the Treasury Department is reallocating resources within the Financial Crimes Enforcement Network (FinCEN) to address domestic terrorism, and the U.S. Department of Justice has reportedly opened an investigation into the Open Society Foundations, which has denied any wrongdoing. Following these federal actions, Texas Attorney General Ken Paxton announced a similar state-level investigation into nonprofit organizations.
  • These developments raise broader concerns about federal and state government authorities’ ability to target organizations based on their viewpoints, including those that differ from current administration priorities. Maintaining an environment where nonprofits can provide valuable research and important services without fear of political interference remains critical to a healthy civil society.

Policy & Regulatory Updates

On March 7, 2025, President Trump signed Executive Order 14235, Restoring Public Service Loan Forgiveness, directing the Department of Education to revise the Public Service Loan Forgiveness (PSLF) program to exclude organizations engaged in activities deemed to have a “substantial illegal purpose.” On October 30, the Department of Education released its final ruling and proposed amendments narrowing the definition of a “qualifying employer,” which could disqualify certain government and nonprofit entities—such as those providing healthcare to transgender youth or declining to cooperate with federal immigration enforcement. Critics argue the changes would politicize the program and unlawfully alter criteria established by Congress, which defined all government and 501(c)(3) nonprofit employers as eligible. A 30-day public comment period will follow publication of the proposal, with final rules expected by November 2025 and implementation slated for July 2026. Read more here.

Government Reopens After 43-Day Shutdown; Health Agencies Face January Funding Cliff

On November 12, 2025, Congress passed and President Trump signed the Continuing Appropriations Act, 2026, ending the longest government shutdown in U.S. history. The legislation funds most federal agencies through January 30, 2026, at current levels, while providing full-year appropriations for the FDA, USDA, Veterans Affairs, and Legislative Branch through September 30, 2026.

  • Key impacts for HRA members:
    • NIH, CDC, and NSF continue operating at FY 2024/2025 funding levels through January 30, 2026, with no increases for inflation
    • FDA received full-year FY 2026 funding ($7 billion, a $70 million decrease from FY 2025)
    • Federal workforce protections: All reductions in force (RIFs) implemented during the shutdown have been reversed, and additional RIFs are prohibited through January 30, 2026
  • What’s next: Congress must pass nine remaining appropriations bills by January 30, 2026, to avoid another funding lapse. Health research agencies continue to operate under flat funding, creating challenges amid rising research costs and inflation.

Events of Interest

Resources & Tools

Research Organization Highlight

This November, we are spotlighting the National Council of Nonprofits. For more than 30 years, the National Council of Nonprofits (NCN) has mobilized the nation’s largest sector-wide network of nonprofits to achieve transformative results. They provide nonprofits with the tools, research, and resources needed to run more effectively, efficiently, and ethically.

In pursuit of a more civil and just society, NCN embeds diversity, equity, and inclusion throughout our organization and the ways they carry out their mission, purposefully and tangibly applying these principles in their internal operations, programs, policies, and leadership.

To learn more about The National Council of Nonprofit’s work or access their resources, click the links below:

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