Federal Response

An Urgent Call to Action:

We are calling on our partners — donors + corporations + foundations — to rise with us in this moment of historic uncertainty to support, stabilize and strengthen the nonprofit sector. We will not stand for a pause in our progress together.

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July 2025

Since January, the Executive Branch has frequently issued Executive Orders (EO) and directives for agencies that have impacted our partners and the communities we serve. This surge of information can overwhelm and fragment public discourse and media coverage, making it difficult for people to get information that affects them the most. To help focus our attention, this bulletin breaks down federal directives and developments that impact our communities and partners with updates, analysis, and links to learn more.

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Cross Sector

• Federal Budget: Top Line • Federal Budget: Healthcare & Food • Immigration

Federal Budget: Top Line

The Administration signed a new budget reconciliation package into law on Friday, July 4. The spending bill makes significant changes to programs across the country and puts new eligibility limits on critical programs like Medicaid and Medicare, SNAP, and many others. The impact of this bill will be far reaching. What others are saying: • American Center for Progress:: 10 Egregious Things You May Not Know About the One Big Beautiful Bill Act

Federal Budget: Healthcare & Food

The federal reconciliation package makes significant changes to both eligibility and funding levels for Medicaid and eligibility for the Supplemental Nutrition Assistance Program (SNAP). In Massachusetts 29% of residents and 48% of children use Medicaid, though MassHealth, for their healthcare coverage and more than 1 million MA residents receive SNAP benefits each month. Exact numbers for how many people these cuts will affect in MA is still to be determined, but the cuts will reduce access to both programs, causing significant strain to families across the state. What others are saying: • Boston Globe: Mass. Officials prepare for major Medicaid cuts after new requirements signed into law by Trump • American Center for Progress: $1 Trillion in Medicaid Cuts—$1 Trillion in Tax Giveaways for the Richest 1 Percent: The One Big ‘Beautiful’ Bill’s Budget Math • Medicare Rights Center: Final House Vote on Devastating Health and Food Assistance Cuts • NPR: 5 ways Trump’s megabill will limit healthcare access • Foodtank: We Can’t ‘Make America Healthy Again’ Without SNAP and Medicaid • Boston Globe: One in three Massachusetts Families don’t have enough to eat, study finds

Immigration

The Administration has continued to move forward with its aggressive immigration policy. In a large blow to birthright citizenship, the Supreme Court, in a ruling, limited the authority of federal judges in issuing nationwide rulings. Additionally, large-scale protests against the administration’s policies in places like LA have been met with large-scale response. The National Guard was deployed to quell the protests, leading to instances of clashes between protesters and police. In Massachusetts, immigrant serving organizations have noted a marked decline in attendance and participation in their programs and services, with community members noting fear of being detained by ICE as a reason they are staying home. What others are saying: • 12 News: Supreme Court ruling on birthright citizenship raises concerns for immigrant families • WTTW News: What’s Next for Birthright Citizenship After the Supreme Court’s Ruling • ACLU: Groups File Nationwide Class-Action Lawsuit Over Trump Birthright Citizenship Order • Los Angeles Times: Hundreds rally on July 4 against immigration raids, budget bill in downtown L.A. • AP: Troops and federal agents briefly descend on LA’s MacArthur Park in largely immigrant neighborhood • NBC News: Immigrants fear required ICE check-ins could lead to deportations • WCVB: Fear of Immigration and Customs Enforcement causes some immigrants to avoid work, school

Safe & Stable Housing

When people can remain in their homes, it benefits everyone. An abundance of safe and stable housing brings dignity and humanity to people, improves health outcomes and decreases emergency and health care utilization and costs, helps us fix past injustices and unlocks the potential of people to thrive in school and work, strengthening our communities. • Federal Budget: Housing

Federal Budget: Housing

The new federal reconciliation package will significantly reduce funding for HUD’s affordable housing, housing voucher program, and community development programs by 44%.This means that households with low incomes are projected to lose an average of $1,600 a year due to the cut to assistance programs. While proponents have argued that the expanded tax credits provided by the bill will increase private investment in housing, it remains to be seen if this will come to fruition. What others are saying: • National Alliance to End Homelessness: The President’s FY2026 Budget Proposal: Potential Impacts on Efforts to Prevent and End Homelessness • National Low Income Housing Coalition: President Trump Signs Sweeping Reconciliation Bill into Law; House Appropriators Aim to Review HUD Funding Bill on July 1 • HUD: HUD Secretary Scott Turner Statement on President Trump’s Discretionary Budget • NPR: Trump budget would slash rental aid by 40% — and let states fill the gap if they want

Early Education & Out of School Time

Addressing current gaps in access and affordability of early education and out-of-school-time will strengthen children’s foundation for learning and engagement during their early years and support caregivers to stay in the workforce, bolstering the economy. High quality programming contributes to increased attendance and improved student achievement and social-emotional wellbeing, closes opportunity and achievement gaps for Black, Latino and immigrant youth and fosters upward mobility to break cycles of intergenerational poverty. • Federal Budget: Early Education & Out of School Time • Afterschool Programs and Access

Federal Budget: Early Education & Out of School Time

The federal reconciliation package has significantly reordered how money will be spent on education. The bill establishes a federal voucher program, very similar to so called “school choice” vouchers that some states have implemented. This federal voucher program has no spending cap and could give away as much as $25 billion per year. The budget also held Head Start and the Child Care Development Block Grant (CCDBG) at level funding. While this is a marked improvement compared to the original budget proposal that would have heavily cut both programs, it still amounts to an effective cut due to inflation. This will put additional strain on the public education system and families. What others are saying: • First Focus on Children: How Funding Cuts Threaten the Future of Early Childhood Education • NeaToday: Trump’s Budget Bill: An Attack on Public Schools, Working Families, and Immigrants • National Association of Elementary School Principals: Trump’s Budget Proposal: A Blueprint for Dismantling K-12 Programs

Afterschool Programs and Access

21st Century Community Learning Centers grants were paused on July 1st pending review by the administration. This money was previously appropriated and is not part of the FY26 reconciliation or appropriations process. The 21st CCLC (Title IV Part B) withholding is potentially catastrophic for afterschool in MA as the grant serves 20,000+ kids. While some districts may be able to continue their afterschool and summer programming by reallocating other funding, many will be unable to bridge the gap. Districts may begin looking to other funding sources, such as licensing programs and CCDBG. What others are saying: • Afterschool Alliance: Release the funds: Responding to withholding of 21st CCLC funds for afterschool and summer • 22 News: Trump Administration’s funding freeze impacts these Massachusetts school programs • Boston Globe: Trump administration withholds over $6 billion for after-school, summer programs, and more

Youth & Young Adults

Equitable access to educational and career pathways requires prioritizing the well-being and holistic needs of young people, creating a cascading positive impact. This will ensure more youth engage in learning and development opportunities, support young people in managing multiple responsibilities and roles within their family and community, increase enrollment and completion rates for college and career pathways and empower young people to make progress toward their dreams. • Federal Budget: Youth & Young Adults

Federal Budget: Youth & Young Adults

Pell grants, which provide access to more affordable higher education, have seen both funding reductions and changes to eligibility. Funding has been reduced by 23%, or $1,685, for a maximum reward of $5,710. Full-time enrollment has been redefined as completing 30 credit hours each academic year, up from 12. Students who receive fewer credits will receive a pro-rated grant. It also eliminates grant eligibility for students studying less than half-time. Currently, 20% of grant recipients could lose eligibility if they do not change the amount of credits they are taking. This change to Pell Grants is compounded by similar cuts to flexible funds that are used by universities to supplement students’ aid packages and Federal Work Study. Workforce development programs have seen similar cuts that will reduce access for young adults to high paying jobs and upward economic mobility. What others are saying: • Brookings: Pell Grant cuts threaten state college access goals • Time: House Republicans’ Budget Could Cut Pell Grants for Millions of Students • National Skills Coalition: Cuts Disguised as Reform: How the 2026 Budget Undermines Workforce Development • Department of Labor: Budget Brief

Economic Inclusion

When people increase their financial wellbeing, it benefits everyone. An abundance of income and assets can put goals like home ownership within reach, empower individuals to further their education, improve mental and physical health, foster upward mobility and break cycles of intergenerational poverty. • Federal Budget: Economic Inclusion and Wellbeing • CFPB Update

Federal Budget: Economic Inclusion and Wellbeing

The federal reconciliation package makes sweeping changes to the various systems and programs that underpin economic mobility opportunities. The cuts in the budget, along with a breaking Supreme Court decision that will allow many of the reductions in the federal workforce to go ahead, will lead to significant unemployment and a squeeze on an already tight labor market. The reconciliation bill reworks much of the tax code, both extending the 2017 tax cuts that benefited high income earners and adding new taxes that stand to benefit the same group. While there are some new tax changes that will help people with lower income such as temporary no tax on overtime, temporary additional deductions for seniors, and a temporary modest increase to the child and dependent care tax credit, these changes will struggle to outweigh the additional cost burden families and individuals with low income will have to bear with the cuts to Medicaid, SNAP, housing vouchers, and more. What others are saying: • National Skills Coalition: Federal Budget, Local Consequences: How Congress’s Cuts Could Undermine States and Workers • Washington Center for Equitable Growth: Equitable Growth responds to passage of the federal budget bill • Penn Wharton, University of Pennsylvania: President Trump-Signed Reconciliation Bill: Budget, Economic, and Distributional Effects

CFPB Update

The CFPB is proposing a new rule to amend how funds in the Civil Penalty Fund can be used. The rule would remove the ability for the CFPB to allocate funds for consumer education and financial literacy programs. Under the Consumer Financial Protection Act, the Civil Penalty Fund may be used for payments to victims of activities subject to civil penalties, and to the extent victims cannot be located or payments are not practicable, the CFPB may use funds for consumer education and financial literacy programs. The proposed rule would remove references to the use of funds for consumer education and financial literacy programs. What others are saying: • Holland & Knight: CFPB Launches Additional Rulemaking, Procedural and Administrative Changes • Sheppard Mullin: CFPB Proposes to Eliminate Education Allocations from Civil Penalty Fund