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The President’s Fiscal Year 2027 Budget: Continued Cuts Will Impact Nonprofits

On Friday, April 2, President Trump submitted his Fiscal Year 2027 budget request to Congress. While this document is a formal submission of the administration’s priorities, it does not reflect what Congress may ultimately approve. And the Department of Homeland Security (DHS) Fiscal Year 2026 remains unresolved, which adds another hurdle to a complicated appropriations process during a midterm election year.

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State of Play: Legislative Updates

The nonprofit sector is facing one of its most challenging political climates in recent memory. The current administration, building on earlier threats to 501(c)(3) status, is proposing—and in some cases, implementing—changes that could restrict speech, cut funding, increase scrutiny of nonprofit programming, and limit fundraising opportunities. Amid these headwinds, new opportunities for visibility and advocacy are emerging regarding both the challenges and opportunities facing charitable organizations.

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2025 Nonprofit Policy Moments and a 2026 Look Ahead

The Nonprofit Alliance (TNPA) was proud to engage with policymakers regarding important legislative and policy moments in 2025. As we move into 2026, a midterm election year, it is an important time to reflect on some of the key policy moments for the nonprofit sector, highlighting both successes and challenges. We remain grateful to TNPA members for their support of our advocacy engagement and for sharing their individual and organizational perspectives to help shape our work.

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The President’s Executive Order on Artificial Intelligence (AI)

The Nonprofit Alliance (TNPA) reviewed the Trump administration’s December 11, 2025, Executive Order (EO), Ensuring a National Policy Framework for Artificial Intelligence. As expected, the EO lays out several new initiatives that will create bureaucratic roadblocks for AI regulation, building on the January Executive Order and July AI action plan, which included language regarding possible retaliation towards states that regulate AI and pushed for a general lack of AI oversight.

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The Government Shutdown’s Impact Will Continue for Nonprofits

The Nonprofit Alliance (TNPA) welcomed the end of the 43-day government shutdown on November 12, 2025, the longest shutdown in U.S. history. The funding agreement, which included a minibus and a continuing resolution (CR) through January 30, 2026, is unfortunately a band-aid on broader funding challenges and undermines Congressional authority to authorize and appropriate funding.

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