Apr. 6 Federal Update: Social Current Opposes Proposed Federal Certification Requirements for Grantees

Social Current recently submitted comments to the General Services Administration opposing a proposal that would require all applicants to agree to three new certifications when registering in the System for Award Management and during each annual renewal. The certifications aim to prohibit grantees from supporting illegal immigration, engaging in illegal activities that threaten public safety or national security, and violating federal antidiscrimination laws.

However, the proposed certifications include vague and complex language that could create significant compliance challenges. Without clear definitions or implementation guidance, the requirements could put human services organizations at risk and lack sufficient safeguards to ensure applicants can reasonably meet the terms.

The proposed changes would broadly affect federal grantees, as nonprofits and state and local governments rely on the System for Award Management to apply for and manage federal funding. The General Services Administration is expected to submit the proposal to the Office of Management and Budget for review.

Executive Order Introduces Notable Changes for Elections

On March 31, President Trump signed an executive order, Ensuring Citizenship Verification and Integrity in Federal Elections. 

The order introduces key requirements: 

• The Attorney General must prioritize the investigation and the prosecution of any individual engaged in, or aiding and abetting, the printing, production, shipment, or distribution of ballots to people who are ineligible to vote in a federal election.  
• The Postmaster General must initiate a rule requiring all outbound ballots to be sent in an envelope marked “Official Election Mail.” Mail-in and absentee ballots must be automation-compatible and trackable by possessing a unique Intelligent Mail barcode, or successor USPS technology. 
• Relevant departments and agencies, including the Attorney General, are expected to ensure compliance with federal election law, including by withholding federal funds from noncompliant states and localities. 

However, the executive order’s implementation remains uncertain. A coalition of 23 attorneys general has since filed a lawsuit, arguing that the order violates the Constitution, which grants states the authority to oversee elections. 

Trump Administration Releases FY27 Budget Proposal 

The Trump Administration released its budget proposal for fiscal year 2027. While the proposal is nonbinding, it offers a glimpse of the executive branch’s priorities and serves as a guide to Congress. 

The proposal recommended drastic increases to military funding alongside a 10% reduction in non-defense discretionary spending. The greatest funding reductions were made to the Small Business Administration, the National Science Foundation, and the Environmental Protection Agency. 

Key recommendations include: 

• A $489 million increase for the IDEA State Grants program 
• The elimination of the Low Income Home Energy Assistance Program, Community Services Block Grant, Refugee Resettlement Program, Unaccompanied Alien Children program, and FEMA Non-Disaster Grant Programs  
• A $30 million investment to expand housing voucher assistance for youth transitioning out of foster care who are at risk of homelessness 
• The elimination of the Community Development Block Grant, HOME Investment Partnerships Program, Homeless Assistance Programs, and Fair Housing Initiatives Program 

For further information regarding the administration’s priorities, the White House published a fact sheet. 

Congress Announces Plan to Fund DHS, Ending the Historic Shutdown, If Passed 

Funding for the Department of Homeland Security (DHS) lapsed Feb. 14 and has yet to be restored, threatening the department’s essential functions, including disaster relief. The leaders of the House of Representatives and Senate published a statement on April 1, announcing a pathway to end the partial government shutdown. 

The proposal suggests funding most of DHS, excluding Immigration and Customs Enforcement and Customs and Border Protection. Funding to the agencies would be restored and approved for the three years through a future reconciliation bill, which the president has stated would need to be passed by June 1. 

Although both chambers of Congress have recessed, the Senate unanimously passed a similar bill, H.R. 7147, March 27.  House leadership is expected to return next week to vote on the bill, but Republicans have expressed key concerns regarding its approach. 

ACF Continues Deregulatory Efforts Using a Zero-Based Regulation Approach 

The Administration for Children and Families (ACF) recently announced the rescission of a grant program no longer in effect, State Legalization Impact Assistance Grants (SLIAG). SLIAG operated from 1987 to 1994 to help states cover costs associated with legalization under federal immigration law, including education, public health, and law enforcement. Although the program has been inactive for decades, it has remained in federal regulations. ACF will remove the regulation, effective May 26, unless the agency receives significant negative comments, which may be submitted through the Federal Register.  

Additionally, the agency also issued two Notices of Proposed Rulemaking to remove duplicative regulations involving Native American programs and services for repatriated nationals with mental illness. Both comment periods end April 27. 

The Administration for Children and Families rulemaking actions follow a comprehensive review using a Zero-Based Regulation approach, which evaluates whether existing rules are still necessary. ACF program offices assess regulations for relevance, duplication, and burden, identifying those that are obsolete or no longer serve their intended purpose. For further information, Alex Adams, the Assistant Secretary of ACF, authored a brief through the Manhattan Institute. 

ACF Announces the Addition of New Evidence-Based Interventions to the Title IV-E Prevention Services Clearinghouse 

The Administration for Children and Families (ACF) at the U.S. Department of Health and Human Services announced the addition of new evidence-based interventions to the Title IV-E Prevention Services Clearinghouse. The Office of Planning, Research, and Evaluation (OPRE) conducted rigorous reviews of each evidence-based intervention to ensure that only programs with demonstrated effectiveness are eligible for federal reimbursement under Title IV-E prevention services funding. 

The approved programs and services include: 

• Incredible Years — Preschool Basic Program (Re-review), Promising 
• Multidimensional Family Therapy (Re-review), Well-Supported 
• Multisystemic Therapy for Child Abuse and Neglect (Re-review), Supported 
• Solution-Focused Brief Therapy, Promising 

In the press release, the Assistant Secretary of ACF, Alex J. Adams, stressed the importance of prevention within the agency’s initiative,  A Home for Every Child. The Home for Every Child initiative aims to safely lower the number of children entering foster care through effective prevention, while also increasing the number of foster homes through diligent recruitment, prioritizing kin, and improving retention of existing caregivers. 

Department of Education Announces Next Steps for Borrowers Enrolled in the SAVE Plan 

On March 27, the U.S. Department of Education began issuing guidance to all borrowers enrolled in the Saving on a Valuable Education (SAVE) Plan, directing them to exit the plan and enter a legal federal student loan repayment plan. 

The guidance follows a court decision approving a joint settlement between the Department of Education and the State of Missouri. The settlement ordered the Department of Education not to enroll any new borrowers in the SAVE Plan, deny any pending applications, and move all SAVE Plan borrowers into legal repayment plans.  

The SAVE Plan was first implemented in February 2024 through a provision of regulations that provided loan forgiveness for borrowers who had been in repayment for 10 years and borrowed $12,000 or less in student loans. The plan would have granted nearly $1.2 billion in loan forgiveness for almost 153,000 borrowers.  

Departments of Education and Treasury Announce Partnership to Guide Student Loan Borrowers in Default 

On March 19, the U.S. Department of Education and the U.S. Department of the Treasury announced the Federal Student Assistance Partnership to enhance the administration of Federal student aid programs and facilitate the return of defaulted borrowers to repayment. 

The Department of the Treasury will assume operational responsibility for collecting on defaulted Federal student loan debt and provide operational support to the Department of Education’s efforts to return borrowers to repayment. In subsequent phases, Treasury will work to provide operational support for non-defaulted Federal student loan debt, while also seeking opportunities to support the Office of Federal Student Aid’s other functions. 

The decision arrives as the Department of Education reports that fewer than 40 percent of borrowers are in repayment and nearly 25 percent are in default. 

For further information, the Departments issued a fact sheet. 

House Appropriations Committee Discusses Leveraging Federal Funding for Adoption Programs   

The House Appropriations Committee recently held a hearing entitled, Advancing Permanency in Child Welfare: Leveraging Federal Funding for Adoption Programs. Members and witnesses alike highlighted the importance of adoption in providing children with safe, stable homes and supporting community well-being.   

Witnesses detailed the challenges states face in facilitating timely, safe, and stable adoptions for children in need. Recommendations to improve post-adoption outcomes included: 

• A greater focus on recruitment and screening of adoptive families 
• Matching prospective families and children 
• Supporting preparation and offering post-adoption support 
• Exploring community-based, Tribally aligned opportunities in adoption 
• Reducing legal and bureaucratic complexity 
• Sustaining a skilled permanency workforce 

Sector Updates from the Judiciary  

Federal Court Upholds the Johnson Amendment  

The U.S. District Court for the Eastern District of Texas rejected a proposed consent agreement between the Internal Revenue Service, churches, and religious organizations. 

Had it been accepted, churches would have been permitted to endorse political candidates while maintaining their tax-exempt status. However, the district court dismissed the lawsuit, determining that federal law prohibits it from interfering in matters of tax assessment. 

The Johnson Amendment stands as a foundational protection for the nonprofit sector by prohibiting tax-exempt organizations from participating or intervening in political campaigns.  

The lawsuit was filed by the National Religious Broadcasters, Intercessors for America, and two churches. The plaintiffs maintained that the Johnson Amendment violates their 1st Amendment rights to freedom of speech and religion. 

Supreme Court Overturns Colorado’s Conversion Therapy Ban  

The Supreme Court, in an 8 to 1 decision, overturned a Colorado law, which bans conversion therapy for minors.

Colorado is one of 27 states with laws completely or partially banning conversion therapy for minors. The eight concurring justices cited free speech concerns, noting the Colorado law prevents therapists from saying they can help a minor change their gender identity or same-sex attraction, but permits them to say that such a goal is impossible. 

The majority disagreed with Colorado’s contention that the law does not violate the First Amendment because therapy is different from other types of speech as a form of health care that the state has a responsibility to regulate.  

Justice Ketanji Brown Jackson, the lone dissenter, spoke to the dangers of the majority opinion. She argued that the majority’s opinion “could be ushering in an era of unprofessional and unsafe medical care administered by effectively unsupervised healthcare providers.”  

Researchers have consistently found conversion therapy to be linked to greater symptoms of depression, post-traumatic stress disorder, and suicidality. Major medical and mental health organizations, including the American Psychological Association and the American Academy of Pediatrics, have also advocated for the end of conversion therapy given the practice’s profound harm and violation of core ethical principles. 

The future of the laws and their enforcement will depend on a lower court’s verdict after the Supreme Court ordered the 10^th Circuit to reconsider the lawsuit with greater concern for the permissibility of regulating free speech. 

Federal Court Rules Against Grant Requirements Related to DEI Initiatives 

The District Court for the Northern District of Illinois issued a preliminary injunction against the Department of Justice, preventing the agency from forcing any grantee or contractor nationwide to certify that they do not operate programs related to diversity, equity, or inclusion initiatives to receive funding. 

Additionally, Judge Matthew F. Kennelly prohibited the implementation of funding conditions that would have required organizations applying for grants through the DOJ’s Services for Victims of Human Trafficking program to agree to cooperate with immigration enforcement. 

The lawsuit was brought by Freedom Network USA, the nation’s largest alliance of organizations and individual advocates working with survivors of all forms of human trafficking.  

Federal Court Determines HHS Secretary Exceeded Authority in Declaring Gender Affirming Treatments Unsafe  

The US District Court for the District of Oregon determined that the Department of Health and Human Services’ Secretary Robert F. Kennedy Jr. failed to follow proper administrative procedures before issuing a declaration regarding the safety, effectiveness, and professional standards of care for gender affirming care procedures for children and adolescents. 

The verdict follows a lawsuit filed by 18 states, which claimed that the declaration exceeded Kennedy’s rule-making power and improperly threatened federal funding for clinics and health care providers that provide gender-affirming care. 

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