While the social sector was initially slower to adopt artificial intelligence (AI) than the private sector, they are quickly catching up. Now, 58% of nonprofit organizations say they are testing use cases for AI. Facing budget constraints and staffing shortages, many organizations can leverage AI tools to effectively bridge these gaps. AI can be useful across many organizational functions, including human resources, data and quality improvement, IT, and marketing, but some employees may feel hesitant to use it.

Understandably, there is a clear tension between the anxiety around AI and the promise that it can automate processes and improve efficiency.

Opportunities

Below are four key considerations as organizations develop a human-centric approach to AI implementation, allay workplace anxiety, and empower employees to take ownership of new tools:

Risks

For all the benefits of AI, there are many risks as well. AI can magnify human biases, open the door to data breaches, put client privacy at risk, and just be completely inaccurate. According to the recent State of the Nonprofit Sector Report, 42% of organizations are concerned about these dangers. Another finding related to workplace morale is that employees who used generative AI frequently lost intrinsic motivation and experienced more disengagement at work than those with little-to-moderate use.

Nonprofits need to carefully consider the risks accompanying AI and document them as part of their risk-management strategy. Mitigation plans should include rapid responses to cybersecurity threats and data breaches; strategies for protecting client data and privacy; and comprehensive AI training for all employee, including how it works, how to check for inaccuracies and plagiarism, and appropriate use cases.

Despite the risks, less than 25% of social sector organizations have a clear strategy or policy for AI use. AI integration will continue to grow and now is the time to draft your organizational approach. Ask your teams to share their hopes, fears, and questions about AI. Draft processes and boundaries that keep personally identifiable information secure and out of generative AI systems. Upskill your team with AI courses, research, and workshops to better understand algorithmic bias and how to identify and mitigate bias risks.

Some sample templates for drafting your own AI use policies include:

Also explore these guiding frameworks for ethical and impactful AI adoption:

Conclusion

As artificial intelligence continues its rapid integration into all sectors, nonprofits stand at a crucial juncture. The opportunities for enhanced efficiency, expanded reach, and improved service delivery are immense. However, these advancements are not without complexities, and AI must be implemented thoughtfully with employees at the center. By fostering open dialogue, prioritizing staff empowerment, and investing in comprehensive AI literacy, nonprofits can ensure AI serves as a powerful force for good within their organizations and beyond.

Sources & Further Reading

Articles

Reports

Knowledge and Insights Center Resources

Social Current’s Knowledge and Insights Center (KIC) offers leaders expertly curated resources to stay ahead of sector trends, implement innovative strategies, and develop your skills to ensure you’re on the cutting edge of best (and next) practices.

Learning Community

Enhance your leadership skills through a range of professional development and learning opportunities. The KIC offers live webinars, self-paced courses, trainings, and learning cohorts.

Center for Creative Leadership Series: Lead the future of your organization and unlock your full potential with on-demand courses from the Center for Creative Leadership.

Next Big Idea Book Club (Impact Partner Exclusive): This book club features nonfiction titles curated by bestselling authors Malcolm Gladwell, Adam Grant, Susan Cain, and Daniel Pink. Through each concise, high-impact course, participants can gain a deep understanding of key concepts and practices in less than 45 minutes.

Business, Media, & Research Databases

From thousands of premium journals to the latest social sector news and media, Social Current Impact Partners and KIC subscribers have access to a wealth of evidence-based resources to support them in addressing any leadership challenge.
Business Books Summaries. Want to learn from bestselling business authors, but don’t have time to read everything on your list? Business Book Summaries provides concise overviews of thousands of key business books to help stay current and develop new skills.

Top Business Book Summaries on AI Technology:

The Tech-Informed Leader’s Recommended Reading List:

Social Current Resources and Opportunities

Customizable Consulting: As artificial intelligence reshapes the social sector, leaders have a critical role to play in guiding their organizations through this technological transformation with vision, transparency, and humanity. Social Current has deep expertise in leadership and organizational development in the social sector. We can partner with you to assess and enhance your leadership strategies and provide training for teams.

SPARK 2025: At SPARK 2025, chief executives (CEOs and executive directors) will have a unique opportunity to deepen their understanding of how to lead through this change with the workshop, A1: AI Is Here—Now What? How CEOs Are Leading with Generative Intelligence. This session will feature candid insights from Brightpoint, a Social Current network organization, and Truth Collective, which has supported marketing and branding initiatives for Social Current and Brightpoint. Participants will explore applications and leadership-level implications for integrating AI into mission-driven work.

Download this spotlight on AI as a PDF.

The Senate Health, Education, Labor, and Pensions Committee released draft legislative text to amend the appropriations bill. If passed, the provisions would significantly impact student loan borrowers. 

The Senate’s proposal includes: 

U.S. Senate Committee on Agriculture, Nutrition, and Forestry additionally proposed changes that are expected to significantly limit access to nutrition programs. 

As the Senate deliberates, it is important to make your voice heard. Social Current has created an issue summary and a sample message to send to your senators. Take action today!

U.S. Department of Health and Human Services Reconstitutes the Advisory Committee for Immunization Practices 

On June 9, the U.S. Department of Health and Human Services announced the removal of all 17 sitting members of the Advisory Committee for Immunization Practices (ACIP). ACIP makes recommendations on the safety, efficacy, and clinical need of vaccines to the Centers for Disease Control and Prevention.  

The members will be replaced with individuals currently under the Department’s consideration. The Secretary affirmed the importance of ensuring that government scientific activities are informed by the most credible, reliable, and impartial scientific evidence available. 

Congressional Advisers Release Recommendations to Improve Access to Care for Children and Adults with Special Health Care Needs 

The Medicaid and CHIP Payment and Access Commission issued their June 2025 report, outlining the following recommendations, 

The Commission also highlighted barriers to accessing appropriate residential treatment, including limited availability of information, a lack of uniformity in assessing children’s need for residential behavioral health care, and workforce shortages. They further emphasized the harm caused by social stigma, limited provider availability, and prior authorization hurdles. 

House Committee on Homeland Security Investigates NGOs Offering Migrant Assistance 

The House Committee on Homeland Security Chairman Mark Green (R-Tenn.) and Subcommittee on Oversight, Investigations, and Accountability Chairman Josh Brecheen (R-Okla.) launched an investigation of more than 200 non-governmental organizations that provided services or support to migrants during the Biden-Harris Administration. 

The investigation was created to examine whether NGOs used federal funds to facilitate illegal immigration. The named organizations have been asked to complete a survey regarding the government grants, contracts, and disbursements they received. They’ve been asked to detail what material assistance they’ve offered, including through transportation, housing, and shelter services. They must also answer whether the organizations have sued the federal government or filed supporting documents against the U.S. government. 

House Committee on Oversight Hosts Hearing Regarding NGOs 

On June 4, the Delivering on Government Efficiency Subcommittee of the House Committee on Oversight and Government Reform held a hearing titled, “Public Funds, Private Agendas: NGOs Gone Wild.”  

Subcommittee Chair Marjorie Taylor Greene (R-Ga.) opened the hearing by maintaining that Democratic elected officials and appointees work closely with non-governmental organizations to advance a political agenda outside the will of Americans. Republican congressmembers and majority witnesses affirmed allegations of fraud and abuse of federal funds.  

Ranking Member Melanie Stansbury (D-Minn.) raised concerns for nonprofits, especially due to ongoing funding freezes, and the resulting challenges communities are facing. Democratic representatives shared similar concerns and, alongside the minority witness, Diane Yentel, the president and CEO of the National Council of Nonprofits, detailed the role of nonprofits and essential benefits they offer to their communities and the country as a whole.  

Sector Updates from the Judiciary   

U.S. Supreme Court Upholds Religious Tax Exemption 

The U.S. Supreme Court unanimously ruled that, according to the First Amendment, it is unconstitutional to impose a denominational preference by differentiating between religions because of theological differences. 

The verdict follows a ruling from the Wisconsin Supreme Court that upheld Catholic Charities’ denial of an exemption from the state’s unemployment tax program. The Wisconsin Supreme Court determined that because the organization is not operated primarily for religious purposes within the state’s legal definition because it does not proselytize or limit their services to Catholics. The U.S. Supreme Court determined Catholic-affiliated charities were wrongly denied a religious exemption from having to pay into the state’s unemployment tax program. 

U.S. Supreme Court Unifies Standard for Students with Disabilities to Prove Discrimination 

The U.S. Supreme Court unanimously rejected requiring a higher burden of proof to demonstrate that students with disabilities have experienced discrimination. Previously, lawsuits required families to prove that the school system acted in bad faith or with gross misjudgment. The ruling is expected to facilitate children and their families’ ability to seek relief. 

Federal Court Denies Request to Halt Further Actions to Close the Institute of Museum and Library Services  

The U.S. District Court for the District of Columbia responded to a lawsuit brought by the American Library Association and the American Federation of State, County and Municipal Employees to stop the closure of the Institute of Museum and Library Services. U.S. District Judge Leon denied the Association’s request to halt further actions from the Trump Administration to close IMLS, maintaining the case should be heard in a separate court specifically for contractual claims. 

However, a separate order, following a lawsuit brought by several states, that prohibits the government from closing the Museum and Library Services Institute remains in place. 

Pride Month is time designated each year to champion equality, call attention to injustice, and celebrate the LGBTQ+ community. This resource from Social Current’s Knowledge and Insights Center (KIC) is designed to help your organization develop impactful Pride Month initiatives that extend beyond June and foster a more inclusive future. Learn how to effectively support your team, create positive change in your community, and stand firmly for LGBTQ+ rights all year round.

History of Pride Month

Pride Month, celebrated each June, traces back to theStonewall Uprisingin June 1969 in New York City. In response to a police raid at the Stonewall Inn, members of the LGBTQ+ community, notably Black transgender women, organized a series of spontaneous protests. This uprising is widely considered a turning point and one of the most important events leading to the gay liberation movement and the modern fight for LGBTQ+ rights in the U.S.

One year later, the first Pride marches were held in New York, Los Angeles, and Chicago to commemorate the Stonewall Uprising. These marches were both a commemoration of the resistance at Stonewall and a public demonstration for equal rights. The core message was a demand for visibility and an end to discrimination. The term “pride” was used as a direct counter-message to societal stigma.

Pride Month remains a powerful symbol of resistance, a celebration of identity, and a call to action. While significant progress has been made in many parts of the world, LGBTQ+ individuals still face discrimination, violence, and legal challenges. Pride Month serves as an important reminder of the work that still needs to be done to achieve full equality and acceptance for all. It encourages dialogue, promotes understanding, and inspires action to advocate against attacks on LGBTQ+ rights.

Further Reading on Pride History

Celebrating Pride at Your Workplace 

As we think about the actions human services professionals can take in our spheres of influence to celebrate and promote equity for the LGBTQ+ community this month, consider some of these simple initiatives you could take to create a more inclusive, safe workplace. This is a good time for leadership teams to affirm their commitment to equity and model inclusive behavior by championing a workplace Pride Month initiative.

Whatever format you choose, make sure to establish ground rules that emphasize respect, active listening, and confidentiality. Using tools that allow participants to contribute anonymously is also helpful for encouraging candid, open discussion.

Take it into the Community

Your organization can also show its support to the wider community. Some activities to consider include:

Keep the Momentum

While Pride Month serves as a vital and visible celebration and a call to action, the fight for equity, acceptance, and safety for LGBTQ+ individuals is a daily reality, not a seasonal event. Being an ally year-round means consistently educating oneself, challenging discrimination whenever it arises, using inclusive language, uplifting LGBTQ+ voices, and advocating for systemic change. Consistent, active support helps create inclusive environments where LGBTQ+ people feel safe, respected, and empowered to be their authentic selves every day.

Knowledge and Insights Center Resources

Social Current’s Knowledge and Insights Center (KIC) offers leaders expertly curated resources to stay ahead of sector trends, implement best practices, and develop your leadership skills.

Learning Community

Enhance your leadership skills through a range of professional development and learning opportunities. The KIC offers live webinars, self-paced courses, trainings, and learning cohorts.

This month, celebrate Pride and discover how to keep your momentum year-round with:

Business, Media, & Research Databases

From thousands of premium journals to the latest social sector news and media, Social Current Impact Partners and KIC subscribers have access to a wealth of evidence-based resources to support them in addressing any leadership challenge.

Business Books Summaries. Want to learn from bestselling business authors, but don’t have time to read everything on your list? Business Book Summaries provides concise overviews of thousands of key business books to help stay current and develop new skills.

Top Business Book Summaries on inclusive workplace strategies:

  1. All Pride, No Ego by Jim Fielding
  2. I Don’t Understand: Navigating Unconscious Bias in the Workplace by Buki Mosaku
  3. Daily Practices of Inclusive Leaders by Eddie Pate & Johnathan Stutz
  4. The Inclusive Organization by Netta Jenkins

The Inclusive Leader’s recommended reading list:

Gain access to the Knowledge and Insights Center by becoming a Social Current Impact Partner or purchasing access.

On Thursday, May 22, the U.S. House of Representatives passed a sweeping budget bill, H.R.1, with 215 Representatives voting in favor and 214 against. The bill will significantly impact core health, nutrition, and anti-poverty programs and strain the nonprofit sector’s ability to respond.

What’s At Risk

Contact your Senators to oppose these harmful provisions.

CMS Issues a Dear Colleague Letter Informing States of Increased Federal Oversight of Medicaid Expenditures

To comply with the executive order, “Ending Taxpayer Subsidization of Open Borders,” the U.S. Centers for Medicare & Medicaid Services announced increased financial oversight of Medicaid funding. States found to be improperly allocating funds to noncitizens will be subject to recoupment of the federal share.

CMS included focused reviews of Medicaid expenditures reported by states on the quarterly CMS-64 and in-depth financial management reviews as potential oversight initiatives. The agency encouraged states to review their policies, internal controls, public assistance cost allocation plans, and IT systems to ensure that they are claiming medical assistance and administrative expenditures in accordance with federal law.

The Department of Education Announces Additional Funding for the Charter Schools Program

The Department of Education announced an increase in the Charter Schools Program (CSP) funding by $60 million for FY 2025, raising the program’s total budget to $500 million. Secretary McMahon additionally announced a new grant opportunity through CSP, the Model Development and Dissemination Grant Program. This program aims to showcase and share strategies that are helping charter schools across the country innovate and succeed.

The Department has also released Notices Inviting Applications for five additional 2025 competitions under the CSP, including the State Entities, State Facilities Incentive Grants, Credit Enhancement, Charter Management Organizations, and Charter School Developers programs.

U.S. Senate Committee on Health, Labor, and Pensions Holds a Hearing on the State of Higher Education

Senators stressed the importance of higher education and the need for a highly educated workforce to respond to rapidly evolving technology and a competitive global economy. Witnesses and senators highlighted critical barriers, including growing unaffordability, and resulting challenges, including rising shortages of critical health professionals. Alongside members, the Executive Director of the Student Borrower Protection Center warned of the imminent financial crisis student loan borrowers are expected to experience through administrative policies, including forced collections against borrowers in default.

Witnesses and senators affirmed the need for comprehensive reform and innovation. They highlighted declining trust in institutions of higher education and discussed the unique role that faith-based institutions, historically-Black colleges and universities, and community colleges hold. They encouraged increasing access, affordability, and accountability, including by expanding PELL grants and safeguarding student loan borrowing protections.

Updates from the Judiciary 

Federal Judge Blocks Executive Order to Dismantle the Department of Education

The United States District Court for the District of Massachusetts issued a preliminary injunction to stop an executive order that directed the Department of Education to facilitate the Department’s closure. U.S. District Judge Myong Joun additionally ordered the Department of Education to reinstate employees terminated as part of the March 11 layoff announcement.

Several advocacy groups and the Somerville and Easthampton school districts filed the lawsuit, maintaining the layoffs amounted to an illegal shutdown of the Education Department. The plaintiffs claimed the Department would not be able to fulfil the responsibilities required by Congress, including their duties to support special education, distribute financial aid, and enforce civil rights laws.

Judge Joun affirmed the layoffs would cause irreparable harm as schools would face financial uncertainty and delay, impeded access to vital knowledge on which students and educators rely, and loss of essential services for the most vulnerable student populations.

Supreme Court Holds Oral Arguments to Determine the Constitutionality of Ending Birthright Citizenship

On May 15, the Supreme Court held oral arguments to determine the constitutionality of President Trump’s executive order ending birthright citizenship.

While three U.S. District Courts blocked the injunction nationwide, the former Acting Solicitor General Sarah Harris requested that the Supreme Court Justices limit the scope of district court rulings to the individuals who brought the lawsuits forward.

The Trump Administration, alongside several members of Congress, argue that the Constitution does not grant lower-level federal courts the power to issue universal injunctions to stop an executive order from being implemented nationwide. Rather, district court judges can only issue a judgement regarding the rights of the specific individuals who filed the lawsuit. The Supreme Court’s ruling holds the potential to significantly impact judges’ response to executive orders.
The Supreme Court is expected to issue its verdict by the end of June.

Subscribe to the Policy and Advocacy Radar to receive our biweekly policy roundup, which includes commentary on issues in Social Current’s federal policy agenda, opportunities to take action, and curated news and opportunities.

On May 22, the House narrowly passed H.R. 1, a massive reconciliation bill that would reshape federal investments in health, nutrition, and anti-poverty programs—undermining access to basic supports and placing significant new burdens on the nonprofit sector.

While advocacy helped remove some of the most extreme threats—like language targeting 501(c)(3) status—serious risks remain, and the bill now moves to the Senate for consideration.

We need your voice in this next phase. Contact your senators today and urge them to:

These changes aren’t just technical. They would destabilize the safety net and increase demand on community-based organizations—while shrinking the tools and resources needed to meet that demand.

Social Current has created resources to help you understand what’s at stake and take action:

Key Concerns

1. Medicaid Access at Risk

The bill maintains provisions that significantly increase administrative barriers to Medicaid and CHIP, including more frequent eligibility redeterminations and new verification requirements.

These changes could cause eligible individuals—especially children, older adults, and people with disabilities—to lose coverage due to paperwork issues or flawed data flags. Additionally, the bill requires states to establish community engagement requirements for certain Medicaid enrollees. It authorizes the Secretary of the U.S. Department of Health and Human Services to penalize non-compliant states by withholding federal funds.

Why It Matters

As coverage gaps widen and support systems are reduced, human services providers will face increased demand from clients needing assistance with re-enrollment and appeals processes. At the same time, if people lose Medicaid coverage, providers may see a direct impact on reimbursement for critical services. This double strain will divert already limited staff capacity from core functions such as behavioral health, trauma recovery, and crisis response.

2. Hunger and Hardship Through SNAP Restrictions

The bill expands work requirements for SNAP recipients and significantly limits states’ ability to waive them—even during periods of high unemployment. According to the Center on Budget and Policy Priorities, the work requirements jeopardize benefits for nearly 11 million people, about 1 in 4 SNAP participants.

The bill also imposes an expiration date on exemptions for veterans, former foster youth, and individuals experiencing homelessness. It shifts program costs to states and requires more frequent eligibility redeterminations.

Why It Matters

These changes will increase hunger and instability for people who are already facing significant barriers. Nonprofits will see higher demand for emergency food, housing, and employment support, with fewer federal resources to meet that need.

3. Burdensome Requirements in Accessing the Earned Income Tax Credit

The bill requires taxpayers to apply for an Earned Income Tax Credit (EITC) certificate for each child claimed beginning in tax year 2028. It establishes fines for reckless, false, and fraudulent statements, increases audits of EITC recipients, and strengthens eligibility verifications. Individuals with repeated incidents may be barred from claiming the credit for two years with evidence of reckless disregard or ten years in the case of fraud. Claims without a certificate may be denied, delayed, or refunds reduced.

Why It Matters

Low-income taxpayers, especially working families and single parents, may face higher risks of audits, even for minor filing errors. Accidental income, relationship, or residency mismatches can trigger audits or refund holds.

Precertification may discourage taxpayers from claiming the credit due to burdensome time and paperwork requirements, while system challenges may lead to needless claim denials. It also raises confusion and uncertainty about whether the child was to be claimed by multiple taxpayers.

4. Student Loan Limits and Changes to Loan Terms

The bill restricts the amount of loans students are eligible to borrow for undergraduate, graduate, and professional programs. It establishes a lifetime limit to the total amount students are able to borrow regardless of amounts repaid, forgiven, canceled, or discharged on a loan. Additionally, the bill prohibits unemployment and economic hardship deferments for loans disbursed on or after July 1, 2025. It would limit the term of forbearance allowed to nine months over two years.

Why It Matters

Countless professionals within the social service sector rely on student loans to afford their education. Financial barriers may prevent individuals from completing their degrees and entering careers in the nonprofit sector. Borrowing limits introduce significant challenges to individuals seeking to advance their education and are expected to exacerbate ongoing staffing shortages the mental health field experiences.

Next Steps: Senate Deliberation

Now that the House has passed H.R. 1, the bill moves to the Senate for consideration. While Republicans hold a 53-47 majority, the bill faces potential revisions due to divergent views within the party. Some Republican Senators have expressed concerns over the bill’s impact on Medicaid and other social programs, indicating that amendments may be proposed to address these issues.

Take Action Now

We need your voice in this next phase.

Social Current’s online campaign makes it easy: Contact your senators.

To stay informed about federal policy changes and receive information about action opportunities, subscribe to our biweekly policy newsletter and join the grassroots advocacy network.

Congress is moving quickly on a sweeping reconciliation bill that would severely impact the human services sector and the communities we serve. The bill still includes major provisions that would:

These changes are not just technical—they threaten the stability of the safety net and the capacity of nonprofits to meet rising demand.

Social Current has created resources to help you understand what’s at stake and take action:

House Reconciliation Issue Summary

Overview

Congress is considering a sweeping reconciliation bill that threatens access to basic health, nutrition, and social services—and undermines the nonprofit sector’s ability to respond. While advocacy efforts have succeeded in removing some of the most extreme proposals, serious risks remain.

Key Concerns

  1. Medicaid Access at Risk: The bill maintains provisions that would significantly increase administrative barriers to Medicaid and CHIP, including more frequent eligibility redeterminations and new verification requirements. These changes would cause eligible individuals—especially children, older adults, and people with disabilities—to lose coverage simply because of paperwork issues or flawed data flags.

    Why It Matters: As coverage gaps widen and support systems are reduced, human service providers will face increased demand from clients who need help navigating re-enrollment and appeals processes. This will divert limited staff capacity away from their core services—such as behavioral health, trauma recovery, and crisis response.
  2. Hunger and Hardship Through SNAP Restrictions: The bill expands work requirements for SNAP recipients and significantly limits states’ ability to waive them—even during periods of high unemployment. According to research and policy analysts at the Center on Budget and Policy Priorities, the work requirements jeopardize benefits for nearly 11 million people, about 1 in 4 SNAP participants.
    The bill also imposes an expiration date on exemptions for veterans, former foster youth, and individuals experiencing homelessness. It significantly shifts program costs to states and requires states to conduct more frequent eligibility redeterminations.

    Why It Matters: These changes will increase hunger and instability for people already facing significant barriers. Nonprofits will see higher demand for emergency food, housing, and employment support, with fewer federal resources to meet that need.
  3. Burdensome Requirements in Accessing the Earned Income Tax Credit: The bill requires taxpayers to apply for an Earned Income Tax Credit certificate for each child claimed beginning in tax year 2028. It establishes fines for reckless, false, and fraudulent statements, while increasing audits of EITC recipients and strengthening eligibility verifications. Individuals with repeated incidents may be barred from claiming the credit for two years with evidence of reckless disregard, or ten years in the case of fraud. Claims without a certificate may be denied, delayed, or the refunds may be reduced.

    Why It Matters: Low-income taxpayers, especially working families and single parents, may face higher risks of audits, even for minor filing errors. Accidental mismatches in income, relationship, or residency can trigger audits or refund holds.

    Precertification may also discourage taxpayers from claiming the credit due to burdensome time and paperwork requirements, while system challenges may lead to needless claim denials. It also raises confusion and uncertainty if the child were to be claimed by multiple taxpayers.

View and print the issue summary as a PDF.

Take Action

We urge Congress to:

Contact Your Lawmakers Today

Social Current’s online campaign makes it easy to contact your members of Congress and urge them to oppose these harmful provisions. Take action now.

To stay informed about federal policy changes and receive information about action opportunities, subscribe to our biweekly policy newsletter and join the grassroots advocacy network.

The House Energy and Commerce, Ways and Means, and Agriculture Committees held hearings on key provisions of the fiscal year 2026 budget bill, which passed the House Budget Committee on Sunday following a failed vote Friday. The House Rules Committee has scheduled a hearing for Wednesday, May 21 at 1 a.m. EST to review the revised proposal.

The latest Rules Committee print includes several significant changes:

Lawmakers are continuing to negotiate the bill text as House leadership aims to send the budget to the Senate before Memorial Day.

Key Proposals in Committee Drafts

Medicaid Coverage and Enrollment Restrictions
Affordable Housing and Investment Incentives
SNAP Work Requirements and Funding Changes
Tax Credits
Nonprofit Tax Rules and Oversight

NIH and CMS Launch Partnership to Advance Autism Research

The National Institutes of Health (NIH) and the Centers for Medicare & Medicaid Services (CMS) have formed a research partnership to investigate the root cause of autism spectrum disorder. The collaboration will begin with a data use agreement focused on analyzing healthcare utilization, chronic disease etiology and treatment, and the economic burden of chronic conditions.

Researchers will examine trends in autism diagnosis, health outcomes of specific medical and behavioral interventions, disparities in access to care by demographics and geography, and the financial impact on families and health care systems. The agencies aim to enhance data sharing to inform more equitable, effective care strategies.

U.S. Department of Education Issues Guidance on Unsafe School Choice Option

TThe U.S. Department of Education’s Office of Elementary and Secondary Education has released a Dear Colleague Letter to state education leaders, offering updated guidance on the Unsafe School Choice Option through the Elementary and Secondary Education Act of 1965 (ESEA). The provision requires states to implement a policies allowing students to transfer from schools identified as unsafe or when they have been victims of violent crimes on school grounds.

The department urged states to regularly review and update the state’s definition of a “persistently dangerous school” and improve processes for collecting school safety data. It emphasized the importance of student safety and encouraged collaboration between state and local education agencies to strengthen school safety measures and enhance the learning experience provided to students.

Executive Order Establishes “Project Homecoming” for Voluntary Departures

On May 9, President Donald Trump signed an executive order launching Project Homecoming, a federal initiative to facilitate the voluntary departure of undocumented immigrants from the United States. The order authorizes federal funding for individuals who chose to leave voluntarily, even if they do not possess official travel documents.  Those who do not participate will be subject to removal, prosecution, incarceration, fines, the garnishment of wages, and the confiscation of savings and personal property. 

House Committee Weighs Benefits and Challenges of Charter Schools

The House Education and Workforce Committee held a hearing to examine the role of charter schools in addressing challenges in the U.S. education system.

Republican lawmakers highlighted charter schools’ innovative models and growing parental support, while Democrats emphasized the need for oversight, transparency, and the protection of civil rights.

Witnesses discussed expanding high-quality charter schools to improve student achievement and proposed using federal tax-exempt private activity bonds to support this growth. Genevieve Siegel-Hawley, an education professor at Virginia Commonwealth University, presented data showing that charter schools can divert resources from public schools and pose barriers to transportation and disability services for students.

The hearing underscored ongoing debates over how best to promote educational equity and access across diverse student populations.

Updates from the Judiciary 

Federal Judge Blocks New Conditions on Transit and Homelessness Grants

A federal judge has temporarily blocked the Trump administration from imposing new conditions on hundreds of millions of dollars in federal grants related to homelessness and transit services.

The U.S. District Court for the District of Columbia issued a temporary restraining order after eight cities and counties, including Boston, New York City, San Francisco, California’s Santa Clara County, and Washington state’s Pierce and Snohomish counties, filed suit. The plaintiffs challenged new grant requirements that would have forced them to eliminate equity, diversity, and inclusion policies, cooperate with federal immigration enforcement, and restrict access to abortion-related information.

Senior U.S. District Judge Barbara Rothstein ruled that the administration’s conditions were not authorized by Congress, were unrelated to the purposes of the grants, and would not improve program administration.

The order prohibits the Department of Housing and Urban Development, the Department of Transportation, and the Federal Transit Administration from enforcing the new conditions or withholding funding until May 21.

Trump Administration Reviews Mental Health Parity Rule, Pauses Legal Challenge

The Trump Administration is reconsidering a 2024 federal rule designed to strengthen mental health parity protections for Americans with private insurance.

The U.S. Justice Department asked the U.S. District Court for Washington, D.C. to pause a lawsuit challenging the rule while the Departments of Health and Human Services, Treasury, and Labor evaluate whether to rescind it. The rule, finalized in September 2024, aimed to close loopholes in the 2008 Mental Health Parity and Addiction Equity Act (MHPAEA) by targeting non-quantitative treatment limits such as poor authorization, network access, and drug formulary restrictions.

The lawsuit was brought by the ERISA Industry Committee, representing large employers which argued that the rule exceeded the agencies’ authority. Judge Timothy J. Kelly granted a temporary pause in the case and set a follow-up hearing for Aug. 7, by which time the agencies must report their decision.

In the interim, the administration has reportedly informed the ERISA Industry Committee of its intent to halt enforcement of the rule.

Subscribe to the Policy and Advocacy Radar to receive our biweekly policy roundup, which includes commentary on issues in Social Current’s federal policy agenda, opportunities to take action, and curated news and opportunities.

Throughout 2024, Social Current continued its efforts to activate the power of the social sector and effect broader systemic change in support of an equitable society where all people can thrive. In collaboration with our network and partners, we focused on strengthening our influence, our voices, and our impact.

We are grateful to have your support as we continue to strengthen and amplify the work of the social sector to facilitate impact and systemic change through our core solutions and impact areas.

Our 2024 Year in Review features:

Download the full report.

On May 2, President Donald Trump released the administration’s proposed budget for fiscal year 2026, highlighting significant spending cuts to domestic programs. While presidential budgets outline policy priorities, Congress is not obligated to adopt them.

The proposal calls for more than $163 billion in cuts to non-defense spending, with major reductions targeting child welfare, education, and public health programs.

Key proposed cuts include:

Congressional Republicans aim to pass appropriations legislation by July 4, ahead of the Sept. 30 fiscal year deadline.

President Trump Signs Executive Orders on Education and Immigration

Advancing Artificial Intelligence Education for Youth

On April 23, President Trump signed an executive order establishing an Artificial Intelligence Education Task Force. The initiative aims task force is to highlight student and educator achievements in artificial intelligence (AI) and promote the adoption of emerging technology nationwide.

The order directs the secretary of education to prioritize AI integration in discretionary grant programs, including efforts to improve teacher training, evaluation, and professional development. It also encourages states and grantees to use Workforce Innovation and Opportunity Act funds to support AI skills development and work-based learning.

Amending School Discipline Policies

In a separate executive order issued the same day, President Trump directed the secretary of education and the attorney general to collaborate with governors and state attorneys general to prevent racial discrimination in school discipline practices.

The order requires the Department of Education to report on what it calls the “discriminatory-equity-ideology-based” policies. The report must include an inventory and analysis of Title VI discipline investigations, model policies, and the role of federally funded nonprofits in promoting these approaches. It must also include recommendations to restrict federal funding for organizations that promote such discipline and behavior modification practices.

Reforming Accreditation in Higher Education

Also on April 23, President Trump signed an executive order directing the Department of Education to hold accreditors of higher education institutions accountable violations of federal law or failing to meet recognition criteria. The order flags equity, diversity, and inclusion (EDI) requirements for institutions as grounds for monitoring, suspension, or termination of accreditor recognition.

Following the order, the department released a Dear Colleague Letter providing updated guidance for accrediting agencies.

Enforcement of Federal Immigration Law

On April 28, President Trump signed an executive order directing the attorney general and secretary of homeland security to publish a list of states and local jurisdictions that do not comply with federal immigration law. Noncompliant jurisdictions may face legal action, loss of federal funds, and other enforcement measures.

White House Releases Report on Executive Order Targeting Gender-Affirming Care

The White House released a report detailing initial steps to implement Executive Order 14187, titled “Protecting Children from Chemical and Surgical Mutilation.” The order prohibits federal departments from funding, sponsoring, assisting, or facilitating gender affirming care. Key actions outlined in the report include:

ACF Updates Payment Processing Requirements to Improve Accountability

The Administration for Children and Families (ACF) has announced updates to its payment processing procedures aimed at increasing transparency and accountability in the use of federal funds.

Organizations using the Payment Management System are now required to provide detailed explanations for payment requests at the subaccount level. Federal awarding agencies will review these justifications and may request additional information or approve based on the details provided.

ACF advised grantees to anticipate potential payment delays by increasing the lead time between the organization’s financial need and the payment request. Additionally, grantees are encouraged to:

Head Start Encourages Family-Centered Program Design

The House and Senate passed a budget framework along partisan lines, completing the first step of budget reconciliation. The plan inThe Office of Head Start has released an information memorandum urging programs to promote parent choice in early education. Programs are encouraged to participate in state and local efforts that coordinate enrollment and services across early care and education systems.

The memorandum recommends engaging families to shape and refine program models, ensuring offerings align with community needs and support informed family decisions. Programs are also encouraged re-evaluate partnerships, particularly with community and faith-based organizations, to expand options and improve access for families.

Office of Child Care Promotes Use of CCDF for Expanded Choice

The Office of Child Care (OCC) issued an information memorandum outlining strategies to use the Child Care and Development Fund (CCDF) to enhance educational choice. Recommendations include:

OCC also emphasized the importance of improving transparency, such as providing accessible provider information and streamlining enrollment processes to help families make informed decisions.

HHS Highlights Progress Under Trump Administration

The Department of Health and Human Services (HHS) released a summary of its key initiatives during the first 100 days of President Trump’s administration. Secretary Kennedy highlighted the following actions as central to reducing chronic illness and improving public health:

HHS Releases Review on Gender Dysphoria Treatments for Youth

The Department of Health and Human Services (HHS), through the Office of the Assistant Secretary for Health and the Office of Population Affairs, released a comprehensive review of medical interventions for children and adolescents with gender dysphoria.

The report raises concerns about the risks associated with puberty blockers, cross-sex hormones, and surgeries, while noting the broader mental health challenges facing adolescents. It also highlights a lack of research on psychotherapeutic approaches for treating gender dysphoria in youth.

Updates from the Judiciary 

Supreme Court Reviews ACA Preventive Care Coverage Mandate

On April 21, the U.S. Supreme Court heard oral arguments in a case challenging the Affordable Care Act’s (ACA) mandate requiring health insurers and group plans to cover preventive services at no cost to patients. At issue is the constitutionality of delegating authority to the U.S. Preventive Services Task Force (USPSTF), which determines the list of required services.

The USPSTF—a panel of independent experts appointed to four-year terms—has recommended coverage for services such as cancer screenings, substance use disorder evaluations, statin use, and HPV vaccinations. The legal challenge stems from the task force’s recommendation to include pre-exposure prophylaxis (PrEP), a medication that prevents HIV, prompting Texas employers and individuals to file suit.

Plaintiffs argue the task force’s authority is unconstitutional because its members are neither presidentially appointed nor Senate-confirmed. Federal officials counter that the Secretary of Health and Human Services maintains ultimate authority by appointing and removing task force members and approving or rejecting its recommendations.

The Court is expected to rule in June. The decision could significantly affect the future of preventive care coverage under the ACA.

Federal Courts Block Enforcement of EDI-Related Funding Threats in Schools

Three federal judges have ruled against a Feb. 14 Dear Colleague Letter from the U.S. Department of Education that threatened to revoke Title I funding from schools maintaining equity, diversity, and inclusion (EDI) programs.

Chief Judge Landya B. McCafferty of the U.S. District Court for the District of New Hampshire found the guidance unconstitutionally vague, noting its lack of definitions for EDI programs or the criteria for alleged violations of Title VI of the Civil Rights Act. Similar concerns were raised by U.S. District Judge Dabney L. Friedrich of the District of Columbia.

Judge Paula Xinis of the District of Maryland issued a temporary stay preventing the administration from enforcing the funding threats. The ruling also paused compliance certification requirements for affected schools. Additionally, Judge McCafferty blocked enforcement against plaintiffs and their members, including the National Education Association, its New Hampshire affiliate, and the Center for Black Educator Development.

Subscribe to the Policy and Advocacy Radar to receive our biweekly policy roundup, which includes commentary on issues in Social Current’s federal policy agenda, opportunities to take action, and curated news and opportunities.

As the second quarter of 2025 begins, the social sector is navigating a complex landscape of both opportunities and challenges, requiring organizations to proactively engage in trend inquiry and scenario planning. While increased institutional trust, community partnerships, and technology integration present positive trends, funding threats, rapid policy shifts, and workforce cuts and shortages pose significant risks.

To effectively strategize, organizations must identify relevant trends, analyze their potential impacts, and understand their implications for community well-being.

Social Current has released a new trend report on topics that our subject matter experts and Knowledge and Insights Center staff will be following closely in the second quarter of 2025:

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.