Public Policy Update – April 2, 2025
Philanthropy Southeast regularly provides members with updates on the latest public policy developments in Washington and state capitols around the region, analyzing their possible impact on the charitable sector. If you would like to see an issue featured in a future Public Policy Update, contact Jaci Bertrand at jaci@philanthropysoutheast.org.
Save the Date for Our April 29 Webinar on In-District Meetings
Foundations on the Hill isn’t the only way to meet lawmakers and staff in-person – meetings at district or state offices can be just as productive and give you a chance to talk to political leaders on your home turf.
Learn more about these meetings, how to set them up, and how to get the most from them, at our upcoming webinar – join us at 10:00am ET on Tuesday, April 29 to hear from policy experts and Philanthropy Southeast members who have organized their own in-district meetings!
Registration for this webinar will open soon – keep an eye out for further updates!
Supporting Philanthropic Freedom
At its most recent meeting, the Philanthropy Southeast Board of Trustees approved a new policy position that supports the First Amendment rights of funders to support the charitable causes and communities of their choice.
“Philanthropy Southeast believes funders have a First Amendment right to direct their philanthropic efforts toward the charitable causes and communities they choose, and that such freedom is necessary to achieve our goal of an equitable and prosperous South,” the statement reads.
The position statement comes as the charitable sector faces increased scrutiny and criticism around its efforts to address systemic inequity and support historically marginalized groups.
This includes an executive order released by the White House on January 21 ordering federal agency heads to work with the Attorney General on a report that would identify “[a] plan of specific steps or measures to deter diversity, inclusion, and accessibility programs or principles” and recommend investigations of large companies and organizations, including “foundations with assets of 500 million dollars or more.” (More on this below.)
The order gave agencies 120 days, or until May 21, to recommend targets for investigation.
Philanthropy Southeast’s statement notes that efforts to stifle the freedom of philanthropy will not only harm communities but also have negative effects across the sector.
“For the health of our region’s philanthropic sector, it is critical that individuals and organizations are free to determine how and where their resources are directed,” the statement reads. “This freedom of expression, and the diversity of ideas it fosters, also creates a richer environment for our members to learn from one another.”
EEOC, DOJ Issue Guidance on “Illegal DEIA”
On March 19, the Equal Employment Opportunity Commission (EEOC) and the Department of Justice released guidance on the January 21 executive order targeting diversity, equity, inclusion and accessibility (DEIA) efforts.
The United Philanthropy Forum, citing analyses by several labor and employment law firms, reported that “the guidance makes clear that any employment action ‘motivated – in whole or in part – by an employee's race, sex, or another protected characteristic’ may be unlawful, even when implemented as part of a DEIA initiative.”
The practices under federal scrutiny include many that could apply to both foundations and their grantees, including mentorship, internship and fellowship programs; employee affinity groups; and efforts to ensure diversity among staff and boards.
The guidance does not define what constitutes “illegal DEIA,” and provisions of this executive order have been challenged in court. However, the United Philanthropy Forum advises that “Organizations implementing DEIA programs should proactively review their practices to ensure alignment with Title VII standards. Foundations and nonprofits with significant assets may face particular scrutiny, as the original Executive Order directs federal agencies to identify potential civil compliance investigations of such entities.”
Tax Policy Update: Republicans Release Budget Blueprint Compromise
Since our last update, House and Senate Republicans have been trying to bridge the differences between the budget resolutions each chamber passed earlier this year – agreement on a budget resolution is required if Republicans want to use reconciliation rules to avoid a Democratic filibuster in the Senate and advance a wide-ranging legislative package that could include provisions helpful or harmful to philanthropy.
On Wednesday, Senate Republicans released a revised budget blueprint negotiated with their counterparts in the House. The Senate is set to debate the budget resolution this week in a process that includes a marathon of votes on amendments, known as a vote-a-rama. House action could follow next week.
If both chambers pass the resolution without further changes, work on a massive legislative package entailing tax cuts, energy, defense and border policy would move ahead. That package, which may take weeks or months to be finalized, could then be passed in the Senate by a simple majority vote.
Ultimately, these are still the initial steps in a long process – meaning there will be many opportunities for philanthropy to make its voice heard.
