On Nov. 12, President Trump signed funding legislation, ending a 43-day government shutdown that caused profound and ongoing harm to the social sector and the communities we serve.  

The legislation extends government funding through Jan. 30, including for Medicare telehealth flexibilities and family-to-family health information centers. The bill is also accompanied by three appropriations bills that fund military construction and the Department of Veterans Affairs, the Department of Agriculture and the Food and Drug Administration, and operations for the Legislative Branch through Sept. 30, the end of the fiscal year.  

Through funding negotiations, the Senate agreed to hold a vote to extend the Affordable Care Act’s enhanced premium subsidies, although the credit’s extension is not guaranteed. Millions of Americans are facing marked premium increases that threaten their ability to access essential care. 

Through the appropriations legislation, funding and benefits through the Supplemental Nutrition Assistance Program (SNAP) have resumed following critical delays. However, delays in vital grant and contract disbursements continue to be expected, exacerbating the immense financial strain the nonprofit sector is facing. The challenges reverberate across Head Start centers as organizations that failed to receive funding due to the shutdown face the potential of weeks-long delays in accessing funding.  

Funding Agreement Safeguards Essential Nutrition Programs 

The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Fiscal Year 2026 Appropriations Bill was enacted Nov. 12, safeguarding funding for essential nutrition programs through Sept. 30. 

The bill authorizes, 

The bill was passed alongside the Military Construction, Veterans Affairs, and Related Agencies Appropriations Act, which secures essential funding for veterans’ health care, benefits, and housing. For further information regarding the The Military Construction, Veterans Affairs (VA), and Related Agencies Appropriations bill’s provisions, the Senate Appropriations Committee published the following brief. 

President Trump Signs an Executive Order to Support Youth in Foster Care 

On Nov. 13, President Trump signed an executive order that aims to support educational success, occupational advancement, and financial literacy and self-sufficiency for individuals within and transitioning out of foster care. 

The order takes action to modernize state child-welfare information systems by expanding states’ use of technological solutions and improving the collection, publication, utility, and transparency of state-level child-welfare data. 

It also centers partnerships with agencies, academic institutions, and nonprofit entities to increase access to housing, education, employment, healthcare, and mentoring services for youth who are in or are transitioning out of the foster care system. 

Additionally, it orders the Department of Health and Human Services to“address State and local policies and practices that prohibit participation in federally-funded child-welfare programs by qualified individuals or organizations because of their religious beliefs or moral convictions.” 

CMS Announces Medicaid Pilot to Lower Prescription Drug Spending  

The Centers for Medicare & Medicaid Services (CMS) has designed a pilot program to lower prescription drug spending in Medicaid, improve health outcomes by increasing access to critical medications, and strengthen the Medicaid program overall. 

State Medicaid programs that choose to participate in the Generating Cost Reductions for U.S. (GENEROUS) Medicaid Model will be able to purchase drugs included in the pilot at prices aligned with those paid in select countries, increasing access to fairer, more competitive pricing.  

The model will launch in 2026. CMS will negotiate with participating manufacturers for lower prices, while states adopting the model are instructed to implement uniform, transparent coverage criteria to ensure predictable access across participating states. 

Sector Updates from the Judiciary 

Federal Court Pauses Colorado Law Requiring Social Media Warnings for Minors 

The U.S. District Court for the District of Colorado paused HB24-1136, a Colorado law that required social media companies to warn minors regarding the potential harms of their platforms. The law ordered companies to issue warnings that would appear every 30 minutes once youth spent at least an hour on a social network in a 24-hour period. The message would remind users of social media’s potential impact on their developing brains and potential impacts ontheir mental and physical health.  

U.S. District Court Judge William J. Martínez cited First Amendment concerns and noted the value of incentivizing, rather than compelling, social media companies to offer disclosures. 

CMS Announces Next Steps for Rural Health Transformation Program 

The Rural Health Transformation Program was created by H.R. 1 to strengthen sustainable access to health care across rural America, including through workforce development and innovative care models. 

Following the closure of the application period, the Centers for Medicare & Medicaid Services (CMS) will now review states’ submissions to ensure completeness and compliance. States meeting the requirements will receive baseline funding, or 50% of available program funds, distributed equally among approved states.  

The remaining funds will be distributed following a rigorous, data-driven merit review led by federal and non-federal rural health experts and overseen by senior federal review directors. The process will assess each state’s proposed initiatives and alignment with program goals. 

Awardees will be announced by Dec. 31, with funding distributed over five years beginning in federal fiscal year 2026. As states begin implementation, program officers from CMS’s Office of Rural Health Transformation will provide technical assistance and ongoing support to help states design, launch, and sustain initiatives that best serve their rural communities. 

Litigation on Our Radar 

Federal Court Upholds Nationwide Injunction of Executive Order DEI 

On Oct. 30, the U.S. District Court for the Northern District of Illinois denied the federal government’s motion to narrow and temporarily pause a preliminary injunction issued April 14. The injunction temporarily prevented the Department of Labor from enforcing a provision within the executive order, Ending Illegal Discrimination and Restoring Merit-Based Opportunity. As a result, DOL grantees and contractors will not have to certify that they do not operate programs that promote diversity, equity, and inclusion to receive federal funds. 

The court maintained that the injunction is needed to provide complete relief to the plaintiffs and to safeguard free speech and conduct rights enumerated through the First Amendment. 

Appeals Court Considers Legality of Preventing Planned Parenthood from Accessing Medicaid Funding 

Following the passage of H.R. 1, Planned Parenthood filed a lawsuit to prevent the enforcement of a provision preventing organizations that provide abortions and receive more than $800,000 a year in Medicaid reimbursements in 2023 from accessing Medicaid funding. 

On Nov. 12, the U.S. Court of Appeals for the First Circuit held arguments after temporarily pausing a lower court’s decision and allowing the law to take effect while litigation continues. The order reversed the verdict issued by the U.S. District Court for the District of Massachusetts, which prevented the rule from going into effect. The district court determined that the provision likely violates the Constitution by specifically excluding Planned Parenthood’s health centers due to their status as abortion providers.  

The Justice Department urged continued enforcement of the rule, noting that the Department of Health and Human Services does not intend to interpret the law to violate the First Amendment, although the guidance required to implement the provision remains pending. 

Recently, Planned Parenthood issued a report detailing the impact of lost Medicaid reimbursements and Title X funds, which led nearly 50 health centers to close since the beginning of 2025 due to insufficient funding. 

The report also arrives as seven states, including California, Colorado, Massachusetts, New Jersey, New Mexico, New York, and Washington, have directed state funds to compensate for lost federal Medicaid reimbursements. 

A Series of Lawsuits Are Filed Against OpenAI, Alleging Psychological Harm 

Seven lawsuits were filed in the California Superior Court against the creator of ChatGPT, OpenAI Inc. The litigation centers wrongful death, product liability, consumer protection, and negligence claims, maintaining that ChatGPT contributed to multiple suicides and psychological injuries by prematurely releasing its GPT-4o model. 

The plaintiffs argue OpenAI engineered GTP-4o to maximize user engagement through features, like memory, simulated empathy, and overly agreeable responses. The design led plaintiffs to become emotionally reliant on the technology, replacing human connection, increasing isolation, reinforcing delusions, fueling addiction, and increasing the risk of suicide. 

The date the lawsuits were filed coincided with OpenAI’s introduction of its “Teen Safety Blueprint”, to identify users younger than 18 and increase the accessibility of safety features.   

HHS Provides Federal Court with Workforce Reduction Data    

In response to a court order following litigation regarding mass reductions-in-force issued during the government shutdown, the US Department of Health and Human Services outlined affected agencies and affected employees. 

Approximately 1,760 employees received termination notices, although several were unintentional and resulted from data discrepancies and processing errors. The lawsuit and a provision within the recent continuing resolution have since paused the layoffs.  

The U.S. District Court for the Northern District of California’s verdict protects 807 employees across the Centers for Disease Control and Prevention (CDC), the Administration for Strategic Preparedness and Response, and the Substance Abuse and Mental Health Services Administration. The order does not extend to several employees within the CDC’s Immediate Office of the Director and the Health Resources and Services Administration’s Maternal & Child Health Bureau. 

Social Current is finalizing updates to its COA Accreditation standards, and we want your voice at the table. These proposed revisions are grounded in a review of published research and professional literature, developed in partnership with a diverse group of subject matter experts, and are now available for your input.

Download the documents of proposed changes:

Click the links above to download the Word documents to your computer. Each file includes simple instructions for submitting your comments. Submit feedback by Dec. 17.

We value and appreciate your insight and participation! Your field experience ensures that the COA Accreditation standards remain rigorous, relevant, and responsive to the evolving needs of individuals, families, organizations, and communities. The final updates will be released in spring 2026.

If you have any questions about the draft standards or the field comment process, please reach out to Melissa Dury, director of standards development at Social Current.

The social sector is currently navigating a turbulent landscape defined by funding cuts, destabilizing policy changes, and rising job insecurity. These pressures demand more than traditional management; they call for transformational leadership that balances pragmatism with vision. In times of volatility, leaders must not only safeguard organizational survival but also remain committed to the core values that bind their staff, board, and volunteers.

Sustaining morale while implementing difficult changes, such as eliminating staff positions, reducing programs, or even dissolving entire departments, necessitates balancing human sensitivity with organizational realities.

Change-ready leaders must:

This is often easier said than done, but the following practical frameworks, resources, and tools can be used to help you manage change.

The Essentials

Change Management Tools for the Adaptive Leader

There are dozens of change management frameworks and models, such as Lewin’s 3-Stage Model, the ADKAR Model, and McKinsey 7-S. Adopting a framework helps organizations approach change in a structured, consistent way that reduces uncertainty, improves communication, and increases the likelihood of successful, lasting outcomes.

Success Factors for Leading Change

For example, drawing from John Kotter’s foundational research, the following change management framework enables leaders to systematically design and sustain organizational transformation in eight key phases:

  1. Create a sense of urgency
  2. Build a guiding coalition
  3. Develop a clear vision and strategy.
  4. Communicate the vision consistently
  5. Empower employees and remove obstacles
  6. Generate short-term wins
  7. Sustain acceleration and build momentum
  8. Anchor changes in the culture

Change management frameworks can provide essential clarity and structure to your organizational change, ensuring alignment across your organization throughout every phase. In short, having an overarching change management framework improves the chances that the change will be adopted sustainably and successfully.

Prioritizing Changes

Leaders can increase the impact and longevity of change by making strategic choices about which projects to advance. When considering which changes to implement, leaders should utilize frameworks such as an Impact-Effort Prioritization Matrix, which plots possible initiatives and changes across two axes: Impact (low to high) and complexity (low to high).

 Low ComplexityHigh Complexity
Low ImpactQuick wins build momentum and show progress.

Examples: Revising forms, reducing minor costs		Avoid these where possible. They drain time without significant payoff.   Example: Implementing a complex data-tracking system for a metric that has limited relevance to service outcomes.
High ImpactPriority actions deliver strong benefits with manageable effort.

Examples: Adopting a digital client intake system		Strategic initiatives require extensive planning, resources, and staff engagement.

Examples: Restructuring service delivery, merging programs



By categorizing changes this way, leaders can identify and act on “quick wins” to maintain morale, prioritize high-impact actions that enhance efficiency, and carefully plan more complex transitions to reduce organizational fatigue.

Essential Change Management Questions for Leaders

Once you’ve decided which changes to implement, it’s crucial to approach each situation thoughtfully to determine the best course of action.

Social Current’s Senior Director of Leadership and Organizational Development Robena Spangler recommends these key questions to guide this process:

  1. Why change? (The rationale, need, or urgency)
  2. What is the change? (Specific details about what will be different)
  3. Who is impacted? (Specific details about who will experience change and how)
  4. When will it happen? (Share the timeline, milestones and key dates)
  5. What support is offered? (Available training, tools, resources)
  6. What is the benefit? (Connect the change to metrics and positive outcomes for staff, clients, and the organization)

Invest in Staff Development

Change-ready organizations should continue to prioritize staff development. Building staff skills enhances efficiency and helps to ensure employees are equipped to thrive in the evolving workplace. Consider focusing on skills such as stress management and resilience, coaching and feedback, management and leadership, trauma-informed supervision, and AI literacy.

Prioritizing professional growth also signals a commitment to staff. Ultimately, organizations that embrace transparency, strategically plan and implement change, and frame change as an opportunity for renewal while still acknowledging losses with empathy and authenticity, can emerge from crises more adaptive, resilient, and mission aligned.

Social Current provides a wide range of resources, including self-paced courses, an intensive leadership development program, the CEO convening, leadership coaching, and customized consulting solutions focused on workforce resilience. These offerings are designed to equip your team with the knowledge and skills to navigate change with confidence.

Social Current Solutions

Consultation Services & Upcoming Events

Executive Leadership Institute
Save the Date: May 10-14, 2026
The Executive Leadership Institute (ELI), offered in partnership with Loyola University Chicago’s Quinlan School of Business, prepares senior-level managers and executives to lead into the future of human services. It moves beyond traditional leadership practices to next-generation leadership practices that fuel future-ready leaders and organizations.

In addition to a weeklong in-person event, students participate in a full year of online learning, which includes interactive presentations, small-group discussions, case study analysis, and more. To help students reinforce and apply their learning, they complete self-designed projects that address an organizational challenge.

Join a free webinar to hear from a recent alumni.

CEO Convening
Save the Date: Oct. 19-21
Social Current’s CEO Convening offers learning and networking tailored to CEOs and executive directors of human and social services organizations. By bringing together leaders who truly understand each other’s day to day, it will help you develop relationships, share challenges, find solutions, and build community. With facilitated sessions, the event’s programming emphasizes dialogue and collaboration to support an organization’s top leader and identify solutions.

Individual and Team Coaching and Support
Social Current offers customized consulting related to leadership development strategies and resources, training and presentations for teams and individuals on adaptive leadership principles, and leadership coaching.

Knowledge and Insights Center Resources

Whether you’re an emerging leader navigating the complexities of the social sector or a tenured leader seeking to refine your expertise, Social Current’s Knowledge and Insights Center (KIC) is your invaluable partner. Leverage our expertly curated resources to stay at the forefront of sector trends, implement best practices, and develop your leadership skillsets.

Center for Creative Leadership On-Demand Courses: Lead into the future of your organization with these on-demand courses from the Center for Creative Leadership Series. This dynamic collection of on-demand courses provides you with the essential skills and strategies to thrive in today’s ever-evolving landscape. Enroll now in these new courses:

Next Big Idea Book Club: Curated by bestselling authors Malcolm Gladwell, Adam Grant, Susan Cain, and Daniel Pink, this “virtual book club” highlights the most important nonfiction books of the past few years. The on-demand lessons distill groundbreaking books, so you gain a comprehensive understanding of key concepts and practices in a fraction of the time (less than 45 minutes). Impact Partners can access all our Next Big Idea courses by logging into the Social Current Learning Community.

Check out these Next Big Idea Book Club courses based on leadership books:

Business, Media, and Research Databases

From thousands of premium journals to the latest social sector news and media, Impact Partners have access to a wealth of evidence-based resources to help them overcome any leadership challenge.

Access these top three leadership Business Book Summaries:

  1. All Pride, No Ego by J. Fielding
  2. Bringing Up the Boss: Practical Lessons for New Managers by R. Pacheco
  3. Leading in a Non-Linear World: Building Wellbeing, Strategic, and Innovation Mindsets for the Future by Gomes and Gerrard

Funding for the federal government lapsed Oct. 1, leaving agencies to rely on limited contingency funding to maintain essential services. However, as the shutdown stretches into November, remaining funding becomes increasingly strained and essential benefits endangered.

The challenges communities are facing continue to grow exponentially. 140 Head Start programs across 41 states and Puerto Rico, serving 65,152 children, are now operating without their annual federal funding. Providers are facing imminent financial challenges that directly threaten the sustainability of their programs and foster instability for children during critical periods of development.

Enrollment for the Affordable Care Act Marketplace opened Nov. 1, a month before Affordable Care Act enhanced premium tax credits are set to expire. The credits have enabled more than 13 million Americans to enroll in the Affordable Care Act Marketplace by increasing the affordability of health insurance. Nearly 5 million individuals are expected to lose health insurance coverage in 2026 if the credits expire. 

Nonprofits similarly face substantial challenges in responding to the significant concerns communities are facing as federal grant and contract funding remains paused.

For further information regarding the shutdown’s impact, Social Current has published a brief outlining the rapid expected loss of key healthcare, housing, child care, and nutrition programs. 

Write to your representatives to share how the shutdown is impacting your community.

CFP Publishes Rule Reinterpreting the Fair Credit Reporting Act 

The Consumer Financial Protection Bureau published an interpretive rule clarifying that the Fair Credit Reporting Act reflects national standards for the credit reporting system. Accordingly, states do not have the authority to restrict medical debts from credit reports. 

The rule follows the passage of legislation across more than a dozen states that have attempted to prevent medical debt from affecting consumers’ credit. It is expected to exacerbate challenges individuals face in accessing credit, especially as health insurance premiums are expected to rise beyond affordable levels.  

According to the Consumer Financial Bureau, an estimated 100 million Americans owe over $220 billion in medical debt. 

Department of Education Announces Final Rule Regarding Student Loan Forgiveness 

On Sept. 30, the U.S. Department of Education released a final rule, which amends the definition of illegal activity capable of preventing organizations from offering public student loan forgiveness.

Employees of organizations that participate in or support the following would be deemed ineligible, 

The rule is effective July 1, 2026.

FDA Announces Nine Voucher Recipients for the Commissioner’s National Priority Voucher (CNPV) Pilot Program 

On Oct. 16, the U.S. Food and Drug Administration (FDA) announced nine voucher recipients under the new Commissioner’s National Priority Voucher (CNPV) pilot program. The program accelerates the standard review process  to 1 to 2 months. Previously, the original process ranged from 10 to 12 months. 

Each medication was selected for its significant potential to address a major national priority. The FDA cited its capacity to address unmet medical needs, reduce downstream health care utilization, address a public health crisis, boost domestic manufacturing, and improve medication affordability with Most Favored Nation pricing.    

The medications selected include,  

Sector Updates from the Judiciary 

Federal Court Orders that SNAP Benefits Continue through the Shutdown

The United States District Court for the District of Rhode Island ordered the Trump Administration to authorize funding for the Supplemental Nutrition Assistance Program (SNAP) through a designated emergency fund. The fund is insufficient to fully cover benefits for the entire month of November, but it serves as an essential stopgap to preserve nutrition assistance for more than 40 million Americans.

U.S. District Judge John McConnell ordered the Department of Agriculture to distribute the emergency funds as soon as possible.

A similar verdict was issued by the United States District Court for the District of Massachusetts. The court ordered that the USDA decide and report by Monday, Nov. 3 if the agency can provide reduced benefits through contingency funds or full benefits through additional funds.

Federal Court Issues Preliminary Injunction Against Reductions in Force 

Following a temporary restraining order, the US District Court for the Northern District of California issued a preliminary injunction against mass reductions in force.  The notices were sent to an estimated 4,100 agency staff across six agencies during the ongoing government shutdown, approximately 1,100 to 1,200 of whom were employed by the US Department of Health and Human Services.    

The injunction will pause any existing layoff notices and prohibit new terminations, although it does not extend to notices issued before the lapse in federal appropriations.  

Appeals Court Upholds Injunction Against Iowa Immigration Law 

The U.S. Court of Appeals for the Eighth Circuit upheld an injunction, preventing the enforcement of a recently passed state law, SF 2340. The law authorizes law enforcement to file criminal charges against individuals with outstanding deportation orders or who had previously been denied entry to the U.S. Accordingly, individuals who later gained lawful status may be prosecuted under the law. 

The verdict affirms immigration enforcement is the federal government’s, rather than state governments’, Constitutional responsibility. The longstanding precedent promotes consistency, safeguarding against a potential patchwork of contradictory laws should states enact conflicting immigration laws. 

Federal Court Prohibits Retroactive Asylum Fees 

The US District Court for the District of Maryland temporarily paused policies that would have enabled the Departments of Justice and Homeland Security to impose asylum fees retroactively. 

The district court determined the polices issued by the US Citizenship and Immigration Services (USCIS) and the Executive Office for Immigration Review (EOIR) would have caused irreparable harm to immigrant applicants. However, Judge Gallagher stated that she would consider a motion to reinstate the fees once USCIS and EOIR have enacted uniform policies that grant asylum applicants fair notice of fee deadlines, payment instructions, and explanations of the consequences for nonpayment. 

The lawsuit was filed by the Asylum Seeker Advocacy Project (ASAP) following the passage of H.R.1, which mandated application fees for asylum applications beginning in July 2026. ASAP argued the agencies violated the Administrative Procedure Act by demanding payments from asylum applicants who filed claims before the law took effect. 

Federal Court Vacates Rule Prohibiting Transgender Bias in Health Care 

The US District Court for the Southern District of Mississippi recently vacated a federal administrative rule intended to protect patients from gender-identity discrimination. The rule included sexual orientation and gender identity as protected characteristics for programs such as Medicaid, Medicare, the Affordable Care Act, and other programs receiving federal funding. It also aimed to preserve access to gender affirming care for transgender patients based on Title IX, which prohibits discrimination on the basis of sex for recipients of federal dollars. 

A coalition of 15 states successfully challenged the rule as the court concluded that the Department of Health and Human Services “exceeded its authority by implementing regulations redefining sex discrimination and prohibiting gender identity discrimination.” 

The order applies to all states, rendering it ineffective. However, the verdict is not expected to cause disruptions as it was paused before it could take effect. 

To grow the momentum and urgency around Five & Rising, we’re looking to select the second community cohort. Building on the foundation of the first cohort, this group will continue to advance the work and expand the movement by:

The first step in being considered for the upcoming Five & Rising cohort is to complete this initial application by Jan. 16. All applications will be screened with top prospects notified of next steps in February 2026.

To learn more about Five & Rising, visit the campaign website. Subscribe to receive updates via email and follow us on LinkedIn, Facebook, and Instagram.

If you have any questions, please contact us.

The federal government has paused all non-essential operations since Oct. 1 after failing to pass legislation to extend funding. Negotiations have primarily focused on extending Affordable Care Act (ACA) premium tax credits before the next ACA Marketplace open enrollment period, which begins Nov. 1.

Enhanced premium tax credits lower the percentage of income ACA Marketplace enrollees pay for coverage. According to Kaiser Family Foundation (KFF) estimates, if these credits expire, enrollees’ out-of-pocket costs would more than double.

Concerns about health care accessibility and affordability continue to grow alongside the ongoing effects of the government shutdown. Lapses in federal funding pose substantial challenges to nonprofits’ financial stability and to communities’ access to essential health and human services.

Funding for Community Health Centers and Temporary Assistance for Needy Families (TANF) expired Sept. 30, along with Medicare telehealth flexibilities. Meanwhile, vouchers for Head Start, the Child Care and Development Block Grant, and Title IV-B are frozen until the government resumes its required funding levels.

The impact continues to widen, with an estimated $28 billion in funding–reserved for more than 200 initiatives–now frozen or canceled across more than 100 Congressional districts.

Organizations that have received federal grants and contracts are encouraged to review the contingency plans of relevant agencies, along with their own grant and contract agreements. It is also critical to carefully document any missed reimbursements, delayed approvals, and paused monitoring. Finally, maintaining communication with congressional representatives remains essential to ensuring they understand the specific challenges your organization and community are facing. 

FNS Issues Guidance for the Implementation of H.R. 1 ABAWD Waivers

On Oct. 3, the Food and Nutrition Service issued guidance to all Supplemental Nutrition Assistance Program (SNAP) state agencies regarding the implementation of Sections 10102(b) and (c) of H.R. 1. The updated statute requires that areas must now have unemployment rates above 10% to qualify for time limit waivers for Able-Bodied Adults Without Dependents (ABAWDs).

The guidance also introduces a special ABAWD waiver criterion and a new type of exemption for individuals residing in Alaska and Hawaii. Under H.R. 1, the Secretary of Agriculture now holds the authority to approve waiver requests for areas of Alaska and Hawaii with unemployment rates at least 150% above the national unemployment rate. The authority is effective immediately and does not expire.

CMS Aims to Redefine States’ Ability to Direct Federal Funding to Emergency Medicaid Coverage for Immigrants 

The Centers for Medicare & Medicaid Services (CMS) recently issued a letter to state Medicaid directors announcing that the agency will interpret an emergency Medicaid provision of the Social Security Act to apply only to payments for direct medical care.

Following the passage of the Emergency Medical Treatment and Labor Act of 1986, all immigrants, regardless of legal status, became eligible for federally subsidized coverage in the event of a serious medical emergency.

While states are permitted to contract with insurers or managed care organizations to cover a broad range of services for beneficiaries at a fixed per-member per-month payment rate, CMS expressed concern over how some states have structured emergency care coverage and the resulting volume of requests for reimbursement.

As a result, CMS intends to limit the emergency Medicaid provision to apply only to payments for care and services necessary for the treatment of an emergency medical condition for individuals without legal status who are ineligible for full Medicaid benefits. This interpretation would exclude Medicaid managed care payments made on behalf of these individuals.

FNS Warns States Full SNAP Funding Cannot Continue Through November

On Oct. 10, the U.S. Department of Agriculture’s Food and Nutrition Service (FNS) notified regional and state SNAP directors that full November SNAP benefits cannot be issued without congressional action to pass appropriations legislation.

SNAP supports more than 40 million individuals nationwide, ensuring consistent access to nutritious food. A lapse in funding would have catastrophic impacts on families already facing food insecurity.

In response, Minnesota’s Department of Children, Youth, and Families has instructed counties and Tribal Nations not to approve new SNAP applications after Oct. 15 in anticipation of potential funding disruptions.

Sector Updates from the Judiciary

Federal Court Determines 501(c)(4) Exemption and Political Activity Standard Unconstitutional

In 2013, the Internal Revenue Service (IRS) denied the organization Freedom Path’s application for 501(c)(4) tax-exempt status after determining the organization had engaged in excessive political activity.

Under current law, 501(c)(4) organizations are required to “primarily” engage in activities that promote social welfare, while all other activities, including political activity, must remain secondary. However, clear limits do not currently exist. Previous rulings have suggested that exceeding roughly 15% of total activities may constitute excessive political involvement, though this threshold is not formally codified.

Further complicating compliance, the IRS applies a “facts and circumstances” test–a non-exhaustive list of 11 factors used to assess whether advocacy communications cross a line into a prohibited political campaign intervention. The test includes six illustrative scenarios, but lacks explicit definitions, leading to concerns about inherent arbitrary and inconsistent enforcement of the 501(c)(4) political activity standards.

Freedom Path subsequently filed a lawsuit, and the U.S. District Court for the District of Columbia ruled that the IRS guidance is unconstitutionally vague.  The court could not determine whether the organization was entitled to tax-exempt status as a result. Both the organization and the IRS have been ordered to propose new standards for 501(c)(4) tax-exempt eligibility and permissible political activity. While the ruling applies exclusively to Freedom Path, the resulting guidance from the IRS will offer clarity across the sector regarding the extent and nature of allowable political engagement for 501(c)(4) social welfare organizations.

Federal Court Temporarily Pauses Mass Reductions in Force

The U.S. District Court for the Northern District of California issued a temporary restraining order against the most recent series of mass reductions in force, finding they are likely “illegal and in excess of authority.”

The order follows the dismissal of more than 4,100 federal employees across nearly six agencies, approximately 1,100 to 1,200 of whom were employed by the U.S. Department of Health and Human Services (HHS).

An estimated 100 to 150 federal employees were dismissed from the Substance Abuse and Mental Health Services Administration (SAMHSA), following a reduction of nearly half of the agency’s workforce in April. Reductions primarily occurred within the Center for Mental Health Services, the Center for Substance Abuse Treatment, the Center for Substance Abuse Prevention, and the Office of Communications.

The U.S. Department of Housing and Urban Development (HUD) similarly distributed mass layoff notices. Reductions were concentrated within the Office of Fair Housing and Equal Opportunity, which investigates claims of discrimination and abuse. Nearly 100 equal opportunity specialists who investigate fair housing complaints received reduction-in-force notices at field offices nationwide. The entirety of HUD’s Denver and San Francisco regional offices—overseeing 13 states combined—also received notices. Additional reductions extended to five other regional offices’ fair housing staff, as well as the division responsible for distributing and administering block grants for affordable housing and community development.

Appeals Court Upholds Abortion Access in Missouri

The Western District Court of Appeals upheld a lower court’s decision pausing enforcement of Missouri state laws restricting access to abortion.

The decision follows the passage of Amendment 3, a constitutional amendment that overturned a near-total abortion ban and protected access to reproductive health care.

The court emphasized the irreparable harm caused by denying abortion care and issued a temporary injunction blocking several restrictive regulations. While the injunction remains in place, patients will not be required to attend two visits at least 72 hours apart before obtaining an abortion, and clinics will not be required to be licensed as ambulatory surgical centers.

Federal Courts Rule Against Grant Conditions

The U.S. District Court for the District of Rhode Island issued a preliminary injunction against the U.S. Department of Housing and Urban Development (HUD), prohibiting the agency from requiring any recipients or subrecipients among the plaintiffs to agree to new conditions.

Domestic violence victim aid organizations filed the lawsuit following HUD’s attempts to condition federal grant funding in ways that would restrict diversity, equity, and inclusion (DEI) efforts. Under the temporary restraining order, HUD and HHS are also barred from requiring grantees to certify that they will not use funds to promote elective abortions or “gender ideology.”

The ruling came shortly after the U.S. District Court for the District of Columbia granted a request from Planned Parenthood affiliates to vacate HHS guidance issued in July. That guidance required grant recipients to revise programming to recognize more than two sexes and to avoid violating parents’ religious beliefs.

This decision also follows the Trump administration’s prior pause on requirements for $1.3 billion in grants, which mandated that states assist federal immigration enforcement to qualify for Victims of Crime Act funding. The release of these conditions follows a multi-state lawsuit alleging that the requirements were unconstitutional and unrelated to the purpose of the grants.

North Dakota Upholds Law Prohibiting Gender-Affirming Care for Minors

The North Dakota District Court upheld a state law prohibiting gender-affirming care for minors. District Judge Jackson Lofgren cited concerns “regarding the capacity of minors to understand and appreciate the long-term consequences” of such care.

House Bill 1254 classifies a health care provider’s decision to prescribe or administer hormone treatments or puberty blockers to a transgender minor as a misdemeanor, and performing gender-affirming surgery on a minor as a felony.

Approximately half of all U.S. states have enacted similar bans on gender-affirming care for minors.

Federal Court Permits Enforcement of ACA Marketplace Changes

The U.S. District Court for the District of Massachusetts denied a coalition of states’ request to temporarily block the Centers for Medicare & Medicaid Services (CMS) rule RIN 0938-AV61.

The rule introduces significant changes, including:

Collectively, these changes are expected to restrict marketplace eligibility and affordability under the Affordable Care Act. CMS estimates that between 725,000 and 1.8 million people will lose coverage in 2026 due to the final rule.

The lawsuit alleges that the rule is arbitrary and capricious, exceeding the agency’s authority and violating the Administrative Procedure Act. Plaintiffs challenge provisions that shorten enrollment periods, introduce a monthly $5 marketplace user fee, and exclude transgender health care from the list of essential health benefits subject to mandatory coverage.

Nevertheless, the court determined that states’ concerns regarding enrollment losses and fees were premature, allowing the rule to remain in effect while litigation continues.

Litigation on Our Radar

Supreme Court Hears Arguments on State Law Prohibiting Conversion Therapy for Minors

On Oct. 7, the Supreme Court heard arguments in a case challenging Colorado’s law prohibiting conversion therapy for minors.

Licensed counselor Kaley Chiles filed the lawsuit, arguing the law violates free speech protections. The Colorado law prohibits licensed mental health professionals from providing treatment intended to change a minor’s sexual orientation or gender identity.

Lawmakers passed the measure in response to growing evidence linking conversion therapy to increased depression, anxiety, and suicide risk. The ban aligns with guidance from leading medical organizations, including the American Medical Association, American Psychological Association, and American Academy of Pediatrics.

Justice Samuel Alito questioned whether the law constitutes “viewpoint discrimination,” while Justice Ketanji Brown Jackson asked why medical professionals would receive differing constitutional protections based on treatment type. The case follows the Court’s recent decision to uphold a state law banning gender-affirming care for minors.

The Tenth Circuit previously upheld Colorado’s law, determining it regulates conduct rather than speech. If the Supreme Court finds that it infringes on speech, it will be subject to strict scrutiny—the highest level of judicial review. A decision is expected in summer 2025 and could affect similar laws in 27 states.

Supreme Court Considers Major Aspects of the Voting Rights Act

On Oct. 15, the Supreme Court heard arguments in a case alleging that Louisiana violated the Constitution’s Equal Protection Clause by creating a second majority-Black congressional district that relied too heavily on race.

The case raises the question of whether the Constitution permits the intentional creation of majority-minority districts to ensure minority voters can elect candidates of their choice. Previous courts have found such districts may be required under Section 2 of the Voting Rights Act, which prohibits election rules that discriminate based on race.

Justice Brett Kavanaugh questioned whether race-based remedies under the Voting Rights Act remain justified six decades after its passage, emphasizing the need for eventual limits.

The ruling is expected to have major implications for congressional map drawing in Louisiana and several other states, potentially reshaping minority representation nationwide.

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The social sector enters Q4 2025 grappling with numerous challenges. The last several quarters have been defined by a mix of financial instability, chronic workforce shortages, and significant policy shifts that have left many organizations struggling to keep pace. However, challenges can also create opportunities for transformation and growth. By embracing innovative strategies and leveraging its collective strength, the sector can forge a more resilient and impactful future.

To help leaders navigate this dynamic reality, this report, compiled by Social Current’s subject matter experts and Knowledge and Insights Center staff, highlights the critical trends at play and our relevant solutions.

Download the full trend report for insight and related Social Current solutions.

Specialized Research Tools for Human and Social Services

Social Current’s Knowledge and Insights Center offers a robust resources portal, which includes a digital clearinghouse library with over 20,000 records; aggregated research and business databases; diverse topic collections and library guides; original content summarizing complex information; and coaching that helps users maximize these resources.

As you plan for 2025 and beyond, make sure you’re utilizing all the tools in your toolbox. For more information about available tools and support, visit our website or contact the Knowledge and Insights Center.

Every day, human services professionals and volunteers make important decisions in order to keep children safe and help families reach their full potential. The Quality Improvement Center on Helplines and Hotlines is conducting practical research to understand more about how these decisions are made. We want to hear from you to learn about how to keep children safe, target child protection resources effectively, and ensure all families can thrive.

We invite all mandated reporters and helpline and hotline staff to complete an anonymous survey about your experiences.

The survey deadline is Oct. 24. Respondents will be entered in a drawing to win one of five $50 gift cards.

Select the survey that is most appropriate for your role. All surveys are anonymous and take about 15 minutes to complete.

Please share the survey links widely. If you would like to distribute a printed copy of this information that includes the QR code, download this flier. These are some of the first national surveys of hotline and helpline staff, which means you can make an impact by participating and spreading the word.

Survey results will help the Center make recommendations on policies and practices for better decision making about families and develop new and improved pathways for families to get the help they need.

If you have any questions about a survey or this research project, email the Center.

The Center is administered by Evident Change in partnership with Social Current and the Children’s Trust Fund Alliance as part of a cooperative agreement with the Children’s Bureau.

This project is supported by the Administration for Children and Families (ACF) of the United States (US) Department of Health and Human Services (HHS) as part of a financial assistance award totaling $2,500,000 with 100% funded by ACF/HHS. The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement by, ACF/HHS or the US Government. For more information, please visit the ACF website Administrative and National Policy Requirements.

The U.S. Department of Health and Human Services (HHS) recently announced a multifaceted approach to address rising rates of autism spectrum disorder (ASD). Components of this plan include: 

Authorizing Treatment with Leucovorin: The Food and Drug Administration (FDA) has published a Federal Register notice outlining a label update for leucovorin for cerebral folate deficiency, which has been associated with autism. As a result, state Medicaid programs will be able to cover leucovorin for the indication of ASD. Additionally, the National Institutes of Health (NIH) will launch confirmatory trials and new research into the impact of leucovorin, including safety studies.   

Initiating a Safety Label Change for Acetaminophen: Due to conflicting literature and a lack of clear causal evidence between acetaminophen use during pregnancy and adverse neurodevelopmental outcomes, HHS aims to encourage clinicians to exercise their best judgment. The FDA will accordingly partner with manufacturers to update labeling and drive new research to safeguard mothers, children, and families. HHS will also launch a nationwide public service campaign to inform families and protect public health.   

Increasing Research Investment: NIH announced the recipients of the Autism Data Science Initiative (ADSI), funding 13 projects to transform autism research. ADSI integrates large-scale biological, clinical, and behavioral data using an exposomics approach, which examines environmental, nutritional, medical, and social factors in conjunction with genetics. 

Head Start Releases Information Memorandum Clarifying Policy Guidance for Vacant Slots  

The Administration for Children and Families released an information memorandum to all Head Start recipients, including Head Start Preschool, Early Head Start, Early Head Start-Child Care Partnerships, Collaboration Offices, and National Centers. 

The memorandum clarifies when Head Start programs should consider a child’s slot vacant after prolonged absences, emphasizes the importance of regular attendance, and provides strategies for programs to enhance access and participation for children and families. 

Head Start Releases Information Memorandum Regarding the Monitoring Process for FY 2026 

The Administration for Children and Families released an information memorandum to all Head Start grant recipients. Aligned with the Improving Head Start for School Readiness Act of 2007, the Office of Head Start is required to monitor programs to ensure they meet quality and compliance standards. The information memorandum outlines the monitoring process for fiscal year 2026, including updates to review formats and the schedule for reviews during a grant period. 

Key updates to monitoring reviews include streamlining and clarifying review questions, reducing the total number of questions from 449 in FY25 to 203 for FY26, and shortening on-site review days from 5 days to 3 or 3.5 days. The changes focus reviews on the most critical elements for child safety and program integrity, as well as reviewing for compliance with all applicable state statutes and regulations for licensing. The updates are designed to strengthen systems early in the grant cycle, support fiscal integrity, and enable more on-site visits sooner in the process, ensuring a strong organizational foundation is established early in the grant cycle.   

Centers for Medicare & Medicaid Services Outline Guidance for Third Round of Medicare Price Negotiations 

On Sept. 30, the Centers for Medicare & Medicaid Services issued final guidance that details requirements and parameters for the third cycle of negotiations and the first cycle of renegotiations for the Medicare Drug Price Negotiation Program, which will occur in 2026 and may result in negotiated maximum fair prices (MFPs) that would be effective in 2028. 

Federal Funding Lapses Without Further Appropriations Legislation 

The government has paused all non-essential operations as of Oct. 1st without continuing resolution or appropriations legislation to extend funding. 

While a continuing resolution that would fund the government at previous levels through November 21, H.R. 5371, was passed by the House of Representatives, it has failed to meet the required 60-vote threshold to pass the Senate. Central disagreements centered the extension of health care tax credits and language regulating recissions.  

Government shutdowns hold far reaching effects for the human service sector and the communities we serve. While mandatory benefits, such as Social Security, continue, reimbursements for key social service programs risk being delayed. 

States face a greater burden to stabilize funding if reimbursements are delayed. The Special Supplemental Nutrition Program for Women, Infants and Children (WIC) presents a critical challenge as it is currently funded by a contingency fund, but funding is not expected to sustain states for more than a few weeks. States may independently implement funding to safeguard the program and seek reimbursement once a continuing resolution is passed, but not all states are able to afford the cost. 

Additionally, vouchers for Head Start, the Child Care and Development Block Grant, and Title IV-B are frozen until the government resumes its required funding levels. 

USDA Terminates Future Household Food Security Reports 

The U.S. Department of Agriculture issued a press release notifying that future Household Food Security Reports would be terminated. The Household Food Security Report provides annual data from national food insecurity surveys to offer insight into the ability of low-income households to access adequate nutrition. 

HHS Publishes Notice of Proposed Rulemaking for Head Start Program Performance Standards 

The U.S. Department of Health and Human Services issued a notice of proposed rulemaking to propose new provisions to the Head Start Program Performance Standards. The standards aim to increase pay and support the Head Start workforce, improve the overall quality of Head Start program services, and strengthen mental health support. 

Sector Updates from the Judiciary  

Federal Court Rejects Conditions Placed on Disaster Funding 

The U.S. District Court for the District of Rhode Island permanently blocked the enforcement of conditions placed on emergency preparedness funds. Judge William Smith determined that the sudden requirements that grant recipients certify that they do not “operate any program that benefits illegal immigrants or incentivizes illegal immigration” and promises to “honor requests for cooperation” in immigration enforcement are illegal. 

The verdict grants summary judgment to the plaintiff states, including Illinois, California, and New York.  

The decision also arrived shortly after the U.S. District Court for the Northern District of California issued a preliminary injunction to prevent conditions from being placed on grant funds  The order stated that the funds cannot be used to further goals related to racial preferences, the denial of “the sex binary in humans or the notion that sex is a chosen or mutable characteristic,” illegal immigration, or other “anti-American values.” 

Reduction-In-Force Remain Paused for Certain HHS Subagencies 

The injunction against further reductions in force for the Centers for Disease Control and Prevention, the Office of Head Start and regional employees, the Center for Tobacco Products, and the HHS assistant secretary for planning and evaluation’s Division of Data and Technical Analysis will remain in place. The U.S. Court of Appeals for the First Circuit upheld the lower court’s preliminary injunction preventing further reductions in force as litigation continues. 

Shortly after, the First Circuit permitted the Department of Education to resume a planned reduction in force for its Office for Civil Rights, following a July Supreme Court order. The Supreme Court decision allowed the Department of Education to proceed with mass staff reductions. 

Appeals Court Warns Mandatory Implicit Bias Training May Give Rise to a Race-Based Hostile Work Environment 

The U.S. Court of Appeals for the Second Circuit determined that mandatory implicit bias trainings are not inherently illegal. However, the court warned that the trainings may give rise to a race-based hostile work environment claim if the training discusses a particular race “with a constant drumbeat of essentialist, deterministic, and negative language.” 

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The Administration for Children and Families (ACF) released a strategic alignment initiative to foster a coordinated approach across agency programs. The approach is designed to enable ACF to concentrate funding on proven interventions, addressing complex human services challenges holistically, and achieving measurable results for children and families in communities throughout America. 

Additionally, ACF agencies are directed to evaluate funding allocations through the lens of their strategic objectives to ensure funding decisions that reflect their core priorities. ACF emphasized the importance of promoting quality early learning environments and improved child outcomes, promoting work and self-sufficiency, supporting family formation, ensuring efficient use of taxpayer dollars, and emphasizing personal responsibility. 

To determine whether grant programs align with ACF’s core priorities, the agency will develop and implement a value alignment assessment, prioritizing programs that demonstrably support: 

Aligned with recent executive orders, the Administration for Children and Families will not fund programs that promote diversity, equity, and inclusion or advance gender ideologies. Additionally, ACF will not support safe consumption sites or harm reduction activities. 

The Make America Healthy Again Commission Releases the Make Our Children Healthy Again Strategy 

On September 9, the Make America Healthy Again Commission released the Make Our Children Healthy Again Strategy. The recommendations encompass more than 120 initiatives to end childhood chronic disease, including advancing research, increasing public awareness, and strengthening private-sector collaboration.  

Key areas of focus include: 

Social Security and Work & Welfare Subcommittees Hold Hearing to Remove Barriers to Work and Support Opportunity for People with Disabilities 

The Social Security and Work & Welfare Subcommittees held a hearing to discuss Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Representatives and witnesses stressed the challenges people with disabilities face in pursuing careers, especially due to asset limits. They also discussed barriers to accessing return-to-work programs, opportunities to improve transitions, and challenges with administrative processes, particularly regarding overpayments.  

Witnesses highlighted the benefit of ABLE savings accounts that allow people with disabilities to keep benefits that support their health and independence while pursuing their careers. They also stressed the importance of trained benefits counselors to advise on complex rules governing related work programs, including Ticket to Work. 

Witnesses proposed encouraging and funding the collaborative model between employers and community-based employment agencies that provide expertise for career development and on-the-job training. They also recommended simplifying the Workforce Opportunity Tax Credit process and resuming previous investments in data and evidence to identify opportunities for program improvement.   

Senate Committee on Health, Education, Labor, and Pensions Holds Hearing on the State of K-12 Education 

The U.S. Senate Committee on Health, Education, Labor, and Pensions held a hearing regarding the state of K-12 education following the recent release of the National Assessment of Educational Progress (NAEP) results. Often referred to as the nation’s report card, the assessment found significant decreases for eighth graders in science and twelfth graders in mathematics and reading. The results were the first published by NAEP since the beginning of the COVID-19 pandemic. 

Witnesses shared the ongoing challenges the pandemic presents as students work to recover key progress. However, they also noted pre-existing trends that were exacerbated by the rapid changes in learning formats marked stress, and profound mental health challenges countless students experienced during the pandemic. The witnesses discussed the disparate impact that contributed to a widening achievement distribution among the highest and lowest performing students. 

Witnesses and senators emphasized the importance of supporting school districts and their teachers while bolstering data collection and research. They expressed concern for the rise of smartphones, social media, and artificial intelligence. Witnesses also recommended researching chronic absenteeism and pathways to increase student engagement. They jointly encouraged a collaborative approach that partners families, educators, higher education institutions, businesses and industry leaders, policy makers, and community stakeholders to ensure students have the skills, confidence, and experiences needed to thrive in their classrooms as well as a workforce and economy increasingly shaped by science, technology, engineering, and mathematics. 

GAO Determines DHS Impounded Funding Appropriated to Serve Migrants  

On September 15, the Government Accountability Office (GAO) released a report detailing that the Department of Homeland Security (DHS) violated federal appropriations law. GAO found that in withholding funding for local governments and nonprofits to provide services for migrants, the agency violated the Impoundment Control Act. 

The report specifically mentioned funding toward the Emergency Food and Shelter Program (EFSP), Shelter and Services Program (SSP), and Building Resilient Infrastructure and Communities Program. 

CMS and SAMHSA Issue Joint Guidance for Crisis Services 

The Centers for Medicare & Medicaid Services (CMS) and the Substance Abuse and Mental Health Services Administration (SAMHSA) issued joint guidance to states on the continuum of crisis services. The document is intended to serve as a guide for states and stakeholders regarding effective practices in crisis services as well as the federal authorities for states to finance and enhance the availability of crisis response services in Medicaid and CHIP. The guidance highlights effective strategies for crisis response services, describes specific Medicaid and CHIP authorities and flexibilities to support the full continuum of crisis services, and provides an overview of strategies for measuring and monitoring crisis response services. 

Office of Planning, Research, & Evaluation Publishes BASE Methodological Guide 

The Administration for Children and Families’ Office of Planning, Research & Evaluation published a methodological guide, entitled Estimating the Costs of Implementing Workforce Development Strategies in Child Care and Early Education. 

The report was published through the Building and Sustaining the Child Care and Early Education Workforce (BASE) project. The project aims to increase knowledge and understanding of the factors that drive staff member turnover in the child care and early education (CCEE) workforce and to build evidence about current initiatives to recruit, advance, and retain a stable and qualified CCEE workforce.  

The brief describes how to inventory the resources required to implement a workforce development strategy and estimate the associated costs using the ingredients method—a widely adopted, mixed-methods approach tailored to education settings. It aims to help users understand key methodological considerations involved in cost study design and ensure accurate cost estimates to support effective decision-making and avoid unintended consequences. 

Proclamation Issued, Temporarily Reforming the H-1B Visa Program 

On September 19, President Trump issued a proclamation restricting immigration for individuals to pursue specialty occupations through the H-1B program, unless their petition is accompanied by a $100,000 payment. The proclamation directs the Secretary of State to issue guidance to prevent misuse of B visas by beneficiaries of approved H-1B petitions that have an employment start date prior to October 1, 2026. 

Notably, the proclamation does not extend to any previously issued H-1B visas or any petitions submitted prior to 12:01 a.m. EDT on September 21, 2025. Unless renewed, the restriction will expire 12 months following the date of the proclamation’s enactment. It also does not change any payments or fees required to be submitted in connection with any H-1B renewals. 

Sector Updates from the Judiciary 

Appeals Court Upholds Denial of Federal Medicaid Funding to Planned Parenthood 

The U.S. Court of Appeals for the First Circuit permitted the Department of Health and Human Services to withhold Medicaid reimbursements to Planned Parenthood following a provision within the recently passed tax and budget bill, H.R. 1. The provision temporarily prevents Medicaid from reimbursing health care centers that offer abortion care and received more than $800,000 from Medicaid in 2023. The appeals court affirmed that the section does not violate the U.S. Constitution. 

Previously, the U.S. District Court for the District of Massachusetts issued a preliminary injunction, temporarily pausing the provision’s enforcement as litigation continued. U.S. District Judge Talwani determined that the law likely violates the Constitution by specifically excluding Planned Parenthood’s health centers due to their status as abortion providers. 

Federal Courts Pause Policy Requiring Immigration Status Verification for Certain Public Services 

Federal judges in Washington and Rhode Island temporarily prevented a policy recently issued by the Departments of Education and Health and Human Services from taking effect. The policy required Head Start, certain public health programs, and adult education and career training programs to verify the immigration status of their participants.  

The judges emphasized the lack of clear guidance and the potential chilling effect on eligible individuals who lack documentation or fear enforcement. Judge Mary McElroy, for the U.S. District Court for the District of Rhode Island, additionally shared the challenges Head Start providers will likely experience in complying with the requirements. She emphasized the resulting financial challenges resulting from decreased enrollment. Similarly, Judge Ricardo Martinez for the Western District of Washington shared the immediate harm families will experience through childhood education loss, disability support, dual language instruction, and stable learning environments, leading to long-term harm to child development. 

A nationwide preliminary injunction is in place to temporarily prevent the directive’s enforcement against any health clinic, adult education, or Head Start agency, program provider, student, or family participant.  

Supreme Court Upholds Order Requiring South Carolina School District to Allow a Transgender Student to Use Restrooms Consistent with Their Gender Identity 

The U.S. Supreme Court denied a request issued by South Carolina to pause a federal appeals court injunction that permitted a 9th-grade transgender student to use school restrooms consistent with their gender identity as the student’s lawsuit progresses. 

The student had filed the lawsuit to challenge a state law requiring students to use the bathroom aligned with their sex assigned at birth. The provision was introduced through South Carolina’s 2024 budget bill and renewed for their 2025-26 state budget. 

Although South Carolina’s circuit and appeals courts upheld the student’s right to use the bathroom aligned with their gender identity, the state petitioned the Supreme Court to prevent the student from using a bathroom that does not correspond with their sex assigned at birth. 

The Supreme Court noted that its decision exclusively followed the standard procedure for obtaining emergency relief. 

Appeals Court Resumes Enforcement of Texas Election Law 

The Fifth Circuit Court of Appeals overturned a district court’s decision, allowing key provisions of a Texas election law to proceed. SB1 regulates how individuals can assist voters in casting ballots.  

 Although a lower court found certain provisions could deter individuals from assisting disabled voters, the 5th Circuit upheld the disclosure provisions. The provisions require people assisting voters to disclose personal information, including their name, address, relationship to the voter, and whether they received compensation. The 5th Circuit ruled the law does not prohibit states from restricting who may assist voters if they’re paid. 

The court also upheld the amended oath provision, which requires individuals to swear under penalty of perjury that they did not pressure the voter, that the voter was eligible for assistance, and that they will not influence the vote. 

Supreme Court Pauses Los Angeles Restrictions Regulating Immigration Stops  

The Supreme Court temporarily paused an order issued by the U.S. District Judge Maame Ewusi-Mensah Frimpong. The decision barred agents in the Central District of California from making immigration stops without reasonable suspicion that the person being stopped is in the United States illegally.  

Judge Frimpong maintained that reasonable suspicion cannot rest solely on any combination of four factors: “apparent race or ethnicity,” speaking in Spanish or accented English, being present at a location where undocumented immigrants are known to gather, and working at specific jobs, such as landscaping or construction. 

The lawsuit was filed following immigration-related raids, which petitioners argued violated the Fourth Amendment’s prohibition on unreasonable searches and seizures. The plaintiffs maintained that reasonable suspicion must be grounded in “specific articulable facts,” rather than “broad profiles which cast suspicion on entire categories of people.” 

Although the U.S. Court of Appeals for the 9th Circuit largely upheld the order as litigation continued, the U.S. Solicitor General sought relief from the Supreme Court, contending the ruling strains law enforcement. 

The Supreme Court, by a 6-3 majority, affirmed that federal immigration officers can briefly detain and interrogate individuals regarding the legality of their status. The ruling permitted officers to rely on a “totality of circumstances” standard for reasonable suspicion, using all of the officer’s knowledge and observations at the time of the stop.  

US Court of Appeals Upholds Injunction Against Further Reduction-in-Force Workforce Notices 

The U.S. Court of Appeals for the First Circuit upheld a preliminary injunction, preventing the Department of Health and Human Services from issuing further reductions in force. The verdict follows an injunction issued by the U.S. District Court for the District of Rhode Island that applies to the Centers for Disease Control and Prevention, the Office of Head Start and regional employees, the Center for Tobacco Products, and the HHS Assistant Secretary for Planning and Evaluation’s Division of Data and Technical Analysis. 

The reductions-in-force will continue to remain paused as litigation continues. 

Federal Court Pauses Funding Restrictions for HUD Grantees 

The U.S. District Court for the District of Rhode Island issued a temporary restraining order to prevent the Department of Housing and Urban Development from imposing conditions on $75 million of grant funding through the Continuum of Care Builds program, which is allocated to build housing for unhoused individuals.  

The lawsuit was filed by a coalition of nonprofits that alleged funding became conditioned to prevent jurisdictions from supporting sanctuary protections, harm reduction practices, or inclusive policies for transgender people. 

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