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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scales of justice

Nonprofits Under Fire: How the IRS Can — and Cannot — Revoke Federal Tax-Exempt Status

While ... announcements have sent a wave of fear, apprehension, and alarm through wide swaths of the nonprofit sector, it is important to note that neither the President, the Justice Department, the Treasury Department, or the IRS have the ability to revoke the federal tax-exempt status of any entity through Executive Order or with the mere stroke of a pen ... There are well-established procedures for revoking federal tax exemption.

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