June 23 Nonprofit News Round-up
An AI-generated list of last week's big headlines.
Prepared by: ChatGPT Research Assistant
Date Range: June 16–22, 2025
Purpose: To inform nonprofit leaders of the most significant federal actions, funding shifts, and tax-exempt policy issues affecting the sector.
Sections:
Top 10 Developments This Week
Ongoing Watchlist (Unresolved Key Issues)
Coming Week: What to Watch (Forward-Looking Alerts)
📰Top 10 Developments This Week (June 16–22, 2025)
**Judge Rules Trump-Era NIH Grant Cancellations Illegal, Citing Discrimination**
U.S. District Judge William Young ruled the cancellation of over $1 billion in DEI-related NIH grants “void and illegal,” mandating reinstatement due to racial and LGBTQ+ bias.
Source: Reuters, June 16, 2025
**Judge Emphasizes “Palpable Discrimination” in NIH Grant Ruling**
In the same case, Judge Young stated he had “never seen such palpable discrimination,” reinforcing the need to restore DEI funding.
Source: Reuters, June 16, 2025
**Judge Blocks Enforcement of Anti-DEI Grant Policies Nationwide**
A federal judge in Massachusetts issued a nationwide injunction preventing Trump-era executive orders from defunding nonprofits based on DEI or identity-specific missions.
Source: AP News, June 16, 2025
**Court Orders EPA to Reinstate $600M in Environmental Justice Grants**
A Maryland court ruled that the EPA unlawfully terminated a $600 million grant program tied to the Inflation Reduction Act and must reinstate funding.
**LGBTQ+ Youth “Press 3” Suicide Hotline Funding Terminated**
The administration will terminate The Trevor Project’s LGBTQ-specific “Press 3” line on the 988 hotline within 30 days, citing ideological reasons.
Source: Reuters, June 18, 2025
**Boston Court Blocks NSF Indirect–Cost Cap at 15%**
A federal judge struck down a Trump-era rule limiting NSF to cap indirect-cost reimbursements at 15%, preserving full funding for institutional infrastructure.
Source: Reuters, June 20, 2025
**Court Halts Defense Dept Indirect–Cost Cuts on Research Grants**
A judge barred the DOD from enforcing similar cost–cap cuts on research grants, supporting university research overhead nationwide.
Source: Reuters, June 17, 2025
**House Passes $9.4B Rescission Bill Targeting CPB & USAID**
The House approved a rescission package that would claw back $1.1 billion from public broadcasting and $8.3 billion from foreign aid; bill moves to Senate.
Source: Reuters, June 20, 2025
**Bipartisan Coalition Forms to Oppose Media + Aid Cuts**
Public media organizations and international aid groups are rallying bipartisan lawmakers to block rescissions, preparing letters and hearings.
Source: Reuters, June 23, 2025
**Nonprofits Scale FEMA Disaster Prep in Response to Overhaul**
Major nonprofits like Team Rubicon and United Way are enhancing national disaster–response readiness due to proposed FEMA restructuring.
Source: AP News, June 21, 2025
🔭Ongoing Watchlist (Unresolved National Issues)
**IRS Plans to Revoke Tax Exemptions for Politically Active NGOs**
Trump-era IRS officials are reviewing the deregulation of 501(c)(3) status for nonprofits viewed as politically engaged.
**Legal Battles Continue Over DOGE Grant Freezes**
Multiple states and nonprofits have filed lawsuits challenging OMB-issued frozen grants under the DOGE initiative.
Source: Roll Call, Jan 28, 2025
**USDA TEFAP & LFPA Food‑Aid Funding Freeze Not Resolved**
Federal emergency food programs remain paused, with ongoing shortages across food banks.
Source: Reuters, March 25, 2025
**NEA Arts Funding Remains Unsettled in Congress**
Advocacy groups continue to urge Congress to revert proposed NEA elimination despite broader budget cuts.
⏩Coming Week: What to Watch (June 23–29, 2025)
**Senate Vote Expected on $9.4B Rescission Package**
The Senate is set to vote on rescinding public media and foreign aid as part of the One Big Beautiful Bill—deadlines loom by July 4.
Source: Reuters, June 23, 2025
**Senate Appropriations Committee to Weigh NIH/NSF Grant Restorations**
Committee hearings expected on recent judicial rulings affecting NIH and NSF grants, likely scheduled this week.
**Senate to Scrutinize LGBTQ+ Hotline Defunding**
Oversight hearings planned in response to the defunding of the LGBTQ-specific 988 suicide hotline and its impact on mental health crises.
Source: Reuters, June 18, 2025
**EPA Likely to File Appeal in Environmental Justice Grant Case**
The EPA is expected to appeal the federal court’s reinstatement order of $600 million in environmental-justice grants this week.
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