Sam Halpert, NALP Director of Public Service Initiatives
Photo: Harris and Ewing Collection, Library of Congress
Hi Interested Public,
Welcome to the end of another week. In DC, the Senate’s proposed budget reconciliation would significantly reduce Congress’ official role in restructuring executive agencies, while the Department of Justice saw thousands of additional staff take buyout offers. A report on the state of the nonprofit sector indicates many leaders expect to experience increased demand for their services while a significant proportion of them are already facing operating deficits. District courts issued additional orders against the Trump Administration in a variety of cases–including one that would see them reinstate legal services for families separated at the border. At the state level, a Texas court preliminarily blocked that state’s Attorney General from implementing oversight policies that would have given him significantly more control over the actions of locally-elected district attorneys.
As always, these stories and more are in the links below.
Solidarity,
“[A] provision added to the Senate iteration of Republicans’ proposed budget reconciliation package would give the White House $100 million to reorganize federal agencies as President Trump sees fit, without congressional input in what critics decried as an “abrogation” of Congress’ power and responsibility…The measure requires the White House to submit an annual report of planned reorganizational moves, but otherwise exempts the administration from most provisions of the federal law governing such actions. And the 10-year reorganization authority could not be used by a future Democratic president to rebuild federal agencies, thanks to language requiring reorganizations be cost-neutral and not “result in an increase in the number of federal agencies.””
“Federal public defenders need an additional $116 million this summer to avoid an expected budget shortfall and the “catastrophic complications” that stem from starting the next fiscal year in a deficit, a top defender warned Democrats…Court officials have warned that the defender services program will run out of funds in mid-July to pay attorneys on what’s known as the Criminal Justice Act panel for their work over the last few months of this fiscal year.”
“Approximately 4,500 Justice Department employees have accepted the Trump administration’s offer to participate in its deferred resignation program, according to new budget documents…DOJ offices have seen widespread resignations of career attorneys since President Donald Trump took office…More than two-thirds of the roughly 380 career lawyers at the civil rights division, which enforces anti-discrimination laws, have left or been reassigned since January…The administration would like to shrink the civil rights division from 626 total positions, including 386 attorneys, to 353 positions, including 193 attorneys, according to the budget summary. The administration is also eyeing staffing cuts in other DOJ offices. The document proposes cutting 113 positions next fiscal year from the Environment and Natural Resources Division, a roughly 30% reduction.”
“In its 2026 budget request, the Department of Justice has significantly reduced the number of prosecutors at the Criminal Division, slashing the number of overseas postings.”
“The State of the Nonprofit Sector Survey (23 pages, PDF), conducted in partnership with Ambit 360 Consulting and EVITARUS, includes detailed financial and operational data from 2,206 nonprofits and is designed to guide funding and advocacy decisions. The report found that 85 percent of respondents expect service demand to increase in 2025, and 36 percent ended 2024 with an operating deficit, the highest in 10 years of NFF’s survey data.”
“According to the letter, the federal investigation “is based on information” that the state government uses affirmative action employment practices “that discriminate based on race, national origin, or other protected characteristics in violation of Title VII.”
“Texas Attorney General Ken Paxton cannot enforce reporting requirements seeking confidential files and communications from prosecutors in large, urban counties, a Travis County judge ruled this week.”
Sam Halpert, NALP Director of Public Service Initiatives
Photo: Harris and Ewing Collection, Library of Congress
Hi Interested Public,
It’s been another dramatic week. In DC, a Senator suggested that a legal services organization in Los Angeles had “provided logistical support and financial resources to individuals engaged in [] disruptive actions”, an employee association of government workers challenged the Office of Personnel Management’s recently-promulgated “Merit Hiring Plan”, and various commentators engaged with the Senate’s newly-released version of the Trump Administration’s budget bill. Nationwide, State Chief Court Justices appealed to Congress not to oblige the Trump Administration’s request to eliminate the Legal Services Corporation (a new section catalogues some responses to this proposed policy), a variety of state governments and academic institutions filed a slew of amicus briefs supporting Harvard in its dispute with the Trump Administration, and the Skadden Foundation released its 2025 Fellowship Application.
As always, these stories and more are in the links below.
Solidarity,
““How would you help advance the president’s executive orders and policy priorities in this role?” the question states. “Identify one or two relevant executive orders or policy initiatives that are significant to you, and explain how you would help implement them if hired.” Those questions already are becoming a requirement of the hiring process; a job listing posted last week by the Interior Department for the superintendent of Mount Rushmore National Memorial includes the questionnaire. However, responses are limited to “200 characters,” far short of OPM’s recommended 200-word maximum.
But Public Employees for Environmental Responsibility, an employee association made up of federal, state and local government workers, on Wednesday called on acting U.S. Special Counsel Jamieson Greer to take action against the questionnaire. The group argued that the executive order question in particular violates federal hiring laws that prohibit discrimination on the basis of “non-performance-related factors” and political affiliation, and that it conflicts with merit system principles.”
“In a written opinion Monday, Judge Denise Cote found OPM “violated the law and bypassed its established cybersecurity practices” when officials first granted individuals from DOGE broad access to its IT systems. “The plaintiffs have shown that the defendants disclosed OPM records to individuals who had no legal right of access to those records,” Cote wrote. “In doing so, the defendants violated the Privacy Act and departed from cybersecurity standards that they are obligated to follow. This was a breach of law and of trust. Tens of millions of Americans depend on the Government to safeguard records that reveal their most private and sensitive affairs.””
“A controversial measure in the U.S. House’s budget bill that would have allowed the federal government to label nonprofit organizations as terrorist groups has been removed from the Senate’s version. But legal experts warn the idea could resurface—and still presents a chilling possibility for free speech and civic engagement.”
“A growing coalition of prosecutors, local governments, and grassroots organizations is sounding the alarm over the U.S. Department of Justice’s (DOJ) abrupt termination of over $820 million in public safety and violence prevention funding…Among those weighing in are 17 states and the District of Columbia, a coalition of 25 prosecutors and municipal leaders including Philadelphia District Attorney Larry Krasner, and a group of community-based subgrantees warning that their survival now hangs in the balance.”
“VA [Human Resources and Administration/Operations, Security, and Preparedness] has never undertaken such a large restructuring, and does not have the capabilities, expertise or the internal resources to fulfill the requirement,” the department said in the memo. “Therefore, OPM, an outside resource, will be essential for this effort.”
“A federal court in California ruled the Trump administration breached the settlement agreement stemming from the American Civil Liberties Union’s family separation lawsuit. At issue is the administration’s sudden and unexplained termination of a contract guaranteeing legal services to clients covered in the 2023 agreement.”
“Hawley, who serves as chair of the Judiciary Subcommittee on Crime and Counterterrorism, requested a history of internal communications and financial records from the Coalition for Humane Immigrant Rights (CHIRLA) to address allegations that they are fueling chaos in California. “Credible reporting now suggests that your organization has provided logistical support and financial resources to individuals engaged in these disruptive actions,” Hawley wrote in the letter. CHIRLA did not immediately respond to The Hill’s request for comment on the matter. However, the 39-year-old nonprofit did deny reports that they were involved in the Los Angeles demonstrations…The organization has received funds from various sources including the Department of Homeland Security to facilitate local citizenship education training.”
“We wanted to learn more about how federal agencies like the FCC, Internal Revenue Service, and Department of Justice are abusing their authority to target First Amendment rights, so we hosted a discussion with FCC Commissioner Anna Gomez and Ezra Reese, an expert in nonprofit tax law and political law from the Elias Law Group…
…In many instances discussed by Gomez and Reese, officials have hijacked vague legal standards to use them in ways that would threaten the First Amendment. The FCC, for instance, has brought investigations under its “news distortion” policy or sought to use its statutory language instructing it to license the airwaves in the public interest to go after news outlets it disfavors because of their coverage.
Gomez was highly critical of these moves, explaining, “The idea that the FCC would take enforcement action or revoke a broadcast license based on editorial decisions is antithetical to the First Amendment and the Communications Act, which prohibits the FCC from censorship.” As she succinctly put it, “The administration is conflating the public interest with its interests.””
“Destroying LSC would compound other Trump administration attacks on the nation’s legal fabric, including its efforts to: impound legal services funding for unaccompanied immigrant kids, survivors of domestic violence, and victims of natural disasters; intimidate attorneys from engaging in pro bono work; and decimate government enforcement agencies that check abuses…Inside every firm, nonprofit, and corporation, lawyers must ask how we can shore up the rule of law. Options abound.”
“Even as California fights President Donald Trump's use of military forces to assist immigration actions, state lawmakers are poised to restrict who can receive taxpayer-funded legal help in deportation proceedings. Tucked into a 1,000-page spending bill endorsed by legislative budget committees on Wednesday are two sentences that would bar spending any Equal Access Fund money on defending immigrants with felony convictions. The quiet addition to legislation set for full house votes on Friday has legal aid groups scrambling to figure out how to comply at a time demand for their services is soaring.”
“A prominent San Francisco nonprofit leader is starting a hunger strike in June, in protest of a proposed budget cut that threatens to strangle civil legal services in the city. Adrian Tirtanadi is the founder of Open Door Legal, which provides legal services for San Francisco’s low-income residents. Access to these services, Tirtanadi said, can help build a bridge out of poverty in America.”
“FreeState Justice, the Baltimore nonprofit providing free legal services to LGBTQIA+ people across the state, expects to have its budget reduced by 25% after losing a grant issued by the governor’s office, officials confirmed this week.”
“Now, with only the budget to cover one attorney and one paralegal, they have had to drastically cut down on the number of cases, but the demand is still there.”
“Like the House bill, the Senate measure proposes cutting the number of student loan repayment plans to just two. That change would kill President Joe Biden's Saving on a Valuable Education, or SAVE, program, which former Education Secretary Miguel Cardona repeatedly called the "most affordable repayment plan ever." SAVE has been stalled in court for months, placing roughly 8 million people in forbearance…The Senate bill would also dramatically curb lending for graduate students and parents (though at lower caps than House Republicans wanted). Ben Cecil, a senior education policy advisor at Third Way, a center-left think tank, said he was pleased to see the bill appeared to make compromises…Melanie Storey, president of the National Association of Student Financial Aid Administrators, said she was "relieved" some of the "most harmful" provisions of the House bill had been nixed.”
“While GOP senators would make some modest changes to the House bill, most of the House-passed provisions repealing key student loan forgiveness and affordable repayment programs would remain intact. This increases the likelihood that the changes would make it into the final version of the bill and ultimately become law.”
“The bill would impose new loan amount limits, simplify repayment options, and make colleges partially responsible for student defaults on loans. The net effect would make federal student loans more expensive.”
“The documents, submitted to a federal court, showed that the Department of Education had been negotiating a deal with the Treasury to oversee federal student loans, a role historically managed by the department's Federal Student Aid office. The plan was put on hold after a federal judge blocked the administration's broader efforts to dismantle the Department of Education.”
“Overall, the number of applicants to law schools is up nationwide. Historically, high salaries, status and furthering academic and career goals were at the top of the list of reasons students chose to pursue a legal degree. But now, most students say that what inspires them is a desire to do good…While many students have always studied law to help serve them in other professions, this too, is shifting. Alber said that most of their applicants express a genuine interest in practicing law or otherwise using the degree to further their goals related to public policy.”
“On June 9, 2025, the U.S. District Court for the Northern District of California issued a ruling in San Francisco AIDS Foundation v. Trump, temporarily blocking the enforcement of several provisions in executive orders issued earlier this year by President Trump. These orders target diversity, equity, and inclusion initiatives and so-called “gender ideology.”…While the injunction applies only to the named plaintiffs in the case and the challenged provisions remain in effect for all others, the court’s reasoning offers early insight into how similar legal challenges may be evaluated as litigation continues to unfold.”
Sam Halpert, NALP Director of Public Service Initiatives
Photo: Harris and Ewing Collection, Library of Congress
Hi Interested Public,
Coming to you with a (late) Monday-morning edition due to unforeseen circumstances. I plan to resume our regular schedule at the end of this week. The last week has been absolutely packed with huge stories, which I’ve tried to compile for you in the links below. Most significantly, the Trump Administration released its plan for ending the Legal Services Corporation, while we got some significant news about the potential future of the Skadden Fellowship program. In other news, the House of Representatives made highly-charged accusations against nonprofits in a public hearing, while the Trump administration threatened the ability of Columbia University students to secure federal student loans to cover their studies there.
As always, these stories and more are in the links below.
Solidarity,
“The 2026 budget appendix requests $21 million for an “orderly closeout” of the LSC, which was established in 1974 to provide financial support for legal aid to low-income people in the US. The independent agency, which provides funding to 130 non-profit legal aid programs, had requested $2.1 billion for fiscal 2026.”
“I recently offered my resignation as executive director of the Skadden Foundation, rather than endorse actions that I believe will undermine its mission,” Kathleen Rubenstein, a former Skadden fellow herself who has run the program since 2019, [said]…Rubenstein’s departure adds to the air of uncertainty around the fellows program, which was specifically mentioned in the deal that Skadden struck with the White House in order to avoid an executive order like the kind the president issued against other law firms perceived as sympathetic to his perceived enemies. Four firms have sued the administration over such orders and three of those orders have been ruled unconstitutional.”
“Advocates who supported Catholic Charities cheered the ruling as a blow for religious liberty and against attempts to define whether or not an organization’s motives are sufficiently rooted in faith…Organizations that represent workers, however, have raised questions about the decision’s broader implications for employees of other institutions connected to churches, including the large networks of Catholic hospitals across the U.S.”
“Agencies would be allowed to refer misconduct cases to OPM instead of following the conventional disciplinary process. If OPM determines that termination of an employee is necessary, the agency would have five days to initiate the termination process. The proposed rule also incorporates new suitability criteria as directed by President Trump’s Executive Order issued on February 11, 2025[.]”
“Through the network, trained former Justice Department lawyers will volunteer to represent current and recent former employees in employment disputes and in criminal or congressional investigations, according to Justice Connection.”
“The Trump Administration has adopted new hiring procedures that will impose ideological litmus tests in federal hiring. Job applicants will be graded on essays about their allegiance to “America’s founding principles” and their commitment to implementing Trump’s executive orders.”
“Republican lawmakers alleged a “money laundering” scheme funneling taxpayer dollars to Democratic officials. Nonprofit defenders claimed the Trump administration is “weaponizing the federal government” to chill nonprofit activity and speech.”
“Mayor Adams encouraged asylum seekers Tuesday to continue showing up for immigration court hearings, even as the city’s Law Department blasted President Trump’s administration for creating “a culture of fear” by using such proceedings as ICE hunting grounds for Trump’s “mass deportation” efforts.”
“With the announcement Wednesday that the Education Department's Office of Civil Rights had notified Columbia University's accreditor that it failed to meet its standards of accreditation, officials took their first shot at student loan and Pell grant money. Accreditors are independent bodies that assess schools' quality and finances and their determination is crucial to schools' flow of Title IV funds or federal financial aid.
If a college isn't accredited, its students can't get federal loans and grants to attend. For most colleges, losing access to this funding would be catastrophic.“
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