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. An OPM memo circulated directing that federal employees have the right to express their religious views at work–and to attempt to persuade colleagues fo the correctness of their views. A DOJ memo warned recipients of federal funds that even programs with “facially neutral criteria (e.g., “cultural competence”…)” may run afoul of its interpretation of antidiscrimination laws. At the state level, chief justices across the US released a report discussing how to financially support public-interest lawyering. More locally, legal aid labor disputes in NYC and Massachusetts have reached tentative agreements, while various jurisdictions see attorneys withholding labor from a financially depleted federal public defender service.
As always, these stories and more are in the links below.
Solidarity,
“Changing the requirements for a law license and supporting financial help for public-interest lawyering are among the ways that state supreme courts can help address “staggering” unmet legal needs, according to a report by a group of state chief justices and court administrators[.]” [report available here]
“All federal employees must be allowed to express their religion at work, the Office of Personnel Management told agencies in a memo Monday…as long as it doesn’t rise to the level of harassment, OPM said federal employees are also allowed to try to persuade their coworkers of the “correctness of their own religious views.”
“A RIF to achieve savings does not run afoul of the ICA as long as any net savings generated from the RIF are offset by other allowable expenses,” GAO said. “An agency can demonstrate that it is offsetting net savings by showing that it is continuing to obligate and expend all funds provided to the affected account(s).”
“Judge Dana Sabraw rejected the administration’s request to evade that ruling, and also found a second major breach by the government when it abruptly terminated its contract with Seneca Family of Agencies, which provides social services to the separated families, without securing any replacement contract,”
“Fourteen civil rights groups said the law firms they count on to pursue legal challenges are hesitating to engage with them, keeping their representation secret or turning them down altogether in the wake of Trump’s pressure, according to interviews with the nonprofits and a review of filings they have made in court.”
“Taken together, the letters sent between April 11 and June 17 were used to launch what the DOJ called an investigation but that legal experts say is among the latest instances in an all-out pressure campaign against higher education.”
“Harvard University said it would turn over employment forms for thousands of staff to comply with demands from the Department of Homeland Security…Harvard said it won’t share records for students employed in roles only available to students and that it’s evaluating whether such a request complies with privacy protection obligations.”
“Under current law, tax-exempt organizations are ineligible for the SECURE Act’s small business retirement plan start-up credit since they do not pay federal income taxes. This creates a barrier for many nonprofits which contribute an estimated $65 billion annually in payroll taxes. The Small Nonprofit Retirement Security Act would allow nonprofits to apply these tax credits against their payroll tax liability, giving them access to the same retirement incentives already available to for-profit organizations.”
“the agency’s memo goes even further than ED’s guidance, suggesting that programs that rely on what they describe as stand-ins for race, like recruitment efforts that focus on majority-minority geographic areas, could violate federal civil rights laws. The directive applies to any organization that receives federal funds, and DOJ officials warned that engaging in potentially unlawful practices could lead to a loss in grant funding.” [memo available here]
“Massachusetts lawmakers Wednesday announced they reached an agreement among themselves to expand the public defender agency and raise hourly rates for private attorneys who work as public defenders — though for less than what the attorneys are asking for.”
“Court-appointed attorneys say an agreement reached with Massachusetts lawmakers is a "critical starting point" toward ending a work stoppage that has resulted in more than 120 cases being dismissed. Attorneys are urging Gov. Maura Healey to sign off on a budget deal with state lawmakers that would increase pay rates in the state.”
Sam Halpert, NALP Director of Public Service Initiatives
Photo: Harris and Ewing Collection, Library of Congress
Hi Interested Public,
Thanks for your patience with me. After some delays, last week’s news is available today. Agencies across the federal government continue to explore their newfound freedom of motion after the Supreme Court lifted injunctions below preventing them from implementing various reductions in force to effectuate Executive Orders issued over the last several months. The Department of Education (which is itself being dramatically reduced) stated publicly that student loan payments made under the new structure created by Congress’ recent reconciliation bill will be eligible for Public Service Loan Forgiveness, although it has paused income-based repayment plans for the interim while it works on a new policy for handling loans. Some–but not all–legal services organizations in New York City have settled their differences with management, while the strike action in Boston continues and additional federal defenders move to withhold labor as the service is unable to pay them. In Florida, state and local governments are experimenting with their own DOGE-style reforms.
As always, these stories and more are in the links below.
Solidarity,
“The Department of Education said late Friday that payments made under the new Repayment Assistance Plan, which Congress created under the 'One, Big, Beautiful Bill,' will qualify for forgiveness under PSLF.”
“A federal district judge ruled the Trump administration must face claims that it illegally tried to stop funding for counsel for unaccompanied immigrant children, in what is now the administration’s fifth attempt in the courts to block its role in the legal aid.”
“The House Oversight and Government Reform Committee is investigating…the New York University School of Law's State Energy & Environmental Impact Center…On Thursday, Oversight Committee chairman James Comer (R., Ky.) sent letters to Bethany Davis Noll, the impact center’s executive director, and Patricia Harris, the CEO of Bloomberg Philanthropies. Comer raised ethics concerns about the fellowship, which he said "undermines faith" in the American legal system, and demanded the two leaders provide relevant documents and communications.”
“I don’t know if the administration knew how many little guys are out there,” said Michael H. Ansell, a solo practitioner in Morristown, N.J., who earlier this year joined the Pro Bono Litigation Corps, newly launched by Lawyers for Good Government, a legal nonprofit. He answered the nonprofit’s plea for lawyers willing to give at least 20 hours a week to an upcoming case. More than 80 volunteered.”
“Since the 1960s, presidential administrations from both parties have used taxpayer dollars to fund nonprofits to take on social problems and deliver services. A vast and interconnected set of federal grants fund public safety programs, early childhood education, food assistance and refugee resettlement services in every state…An analysis by the Urban Institute provides a sense of the scale and reach of government support for nonprofits.”
“With government dollars now used as leverage, the institutions that have long held civil society together are being quietly dismantled. This piece breaks down the damage, exposes the political intent, and lays out five ways the sector can fight back before it’s too late.”
“About 40% of the roughly 33 million people repaying student loans were enrolled in one of the Education Department's four such repayment plans at the end of 2024…But three of those programs had previously been halted by a court ruling, while forgiveness for the roughly 2 million people enrolled in the fourth — IBR — is now also paused…Because the SAVE plan could count toward loan discharges in the IBR program, the Education Department is now temporarily halting forgiveness for enrollees in that plan. The Education Department said the loan discharges will resume at some point, but didn't provide a timeframe for when that might occur…Borrowers in the federal IBR plan are eligible to have their student loans canceled after making payments for at least 20 years. However, some people eligible for such forgiveness have yet to see their loans canceled. They should continue making those payments, and the Education Department will eventually refund them, according to the agency.”
“But Turner cautioned against the abrupt reversal of the program. After accounting for inflation, the lifetime borrowing limits now placed on graduate students are lower than they were in 2005, she said. Many students may turn to private loans to cover the gap, often at higher interest rates…Sophia Tully, co-president of the Minority Association of Pre-Med Students at Northwestern, said she and her peers have struggled to reconcile with a system that often feels stacked against them. The 21-year-old plans on taking an extra gap year before medical school in an effort to save money.”
Conflicts Over Diversity, Equity, Inclusion, and Accessibility
“A diverse group — faith leaders, college students, grandmothers, retired lawyers and professors — has been showing up at immigration courts across the nation to escort immigrants at risk of being detained for deportation by masked ICE officials. They're giving families moral and logistical support, and bearing witness as the people are taken away.”
Sam Halpert, NALP Director of Public Service Initiatives
Photo: Harris and Ewing Collection, Library of Congress
Hi Interested Public,
Following closely on its order of July 8th lifting lower court injunctions against an array of “reduction in force” plans across the federal bureaucracy, the Supreme Court lifted a lower court injunction preventing the Department of Education from acting on an Executive Order issued last March aimed at “Closing the Department of Education”. The implications of this latest order for student debt and federal employment generally are profound even in a period characterized by seismic shocks. (See “Editor’s Choices”)
In other news, the US Congress (having passed budget reconciliation) is looking forward to FY26; the House of Representative’s approach does not completely defund LSC but does include “dramatic staffing cuts” (per Government Executive). Public defenders in NYC are striking in increasing numbers, the defender strike in Boston is continuing to reveal structural issues, and federal defenders are working without pay after the US courts exhausted their budget; defenders in North Dakota have already stopped work.
As always, these stories and more are in the links below.
Solidarity,
“The Supreme Court ruled on Monday that the Trump administration may fire more than half of the Department of Education’s workforce — mass terminations that, in Education Secretary Linda McMahon’s words, are “the first step on the road to a total shutdown” of the entire department.
…Last week, in Trump v. American Federation of Government Employees (AFGE), the Supreme Court issued a similar decision reinstating a different Trump executive order which called for mass firings. That order required federal agency leaders to come up with aggressive plans to fire agency employees, but did not provide many details on who will be fired.
…Sotomayor [] would have waited for the agencies to release their plans, and then she would have determined whether any of these plans make such deep cuts that they amount to something like an unconstitutional impoundment.
…The McMahon case, by contrast, presented the same issue that Sotomayor anticipated in her AFGE concurrence. Secretary McMahon has already come up with a plan to fire more than half her department’s employees, and that plan was before the Supreme Court. So Sotomayor and her colleagues could determine whether any of these cuts are so deep that they effectively eliminate federal programs mandated by Congress.
Now that this issue was properly before the Court, however, Sotomayor’s Republican colleagues appear to have come out in favor of impoundment.”
“McMahon is expected to move quickly — department lawyers have already previewed the plans in court filings…Among the most important decisions is where to put management of federal student loans, a $1.6 trillion portfolio affecting nearly 43 million borrowers…a June court filing indicated the Treasury Department is expected to take over the work.”
“As some federal agencies are moving forward with mass dismissals of employees after receiving the Supreme Court’s blessing to do so, the Trump administration is telling a lower court that some agencies are walking back their planned layoffs.”
“The Trump administration is formally arguing before a federal oversight body that it has unilateral authority to fire many federal employees at any time, seeking to unwind decades of precedent and current federal law.”
“As former General Counsels and Solicitors of federal departments and agencies, we write to ask all lawyers previously employed by the federal government to come to the aid of their former coworkers…The actions of the current administration have led to massive job losses in the federal sector and extraordinary confusion and anxiety among federal employees. These employees need counsel to understand their rights and how best to cope with a very challenging situation. All lawyers formerly employed by the federal government (who maintain an active license in any state) can help provide such counsel.”
“House Republicans proposed cutting funding for the Legal Services Corporation, but aren’t eliminating it completely as President Donald Trump had suggested.”
“[A] 33-year-old attorney who resigned from ICE’s legal department last month…He told me that he saw frustration among ICE attorneys whose cases were dismissed just so officer teams could grab their clients in the hallways for fast-track deportations that pad the stats. Some detainees had complex claims that attorneys have to screen before their initial hearings, to ensure due process. Others with strong asylum cases were likely to end up back in court later anyway. The hallway arrests sent the message that the immigration courts were just a convenient place to handcuff people. Some ICE attorneys “are only waiting until their student loans are forgiven, and then they’re leaving,” he said.”
“Staff at the Bronx Defenders, the Center for Appellate Litigation and the Office of the Appellate Defender join the roughly 400 attorneys and legal staff across four other nonprofit organizations already on the picket line seeking better pay and working conditions, bringing the total number of strikers to more than 700.”
“The Legal Services Corporation focused its Tuesday forum on efforts to expand legal services in Michigan, with a particular emphasis on local housing initiatives including eviction diversion efforts.”
Sam Halpert, NALP Director of Public Service Initiatives
Photo: Harris and Ewing Collection, Library of Congress
Hi Interested Public,
Apologies for a doorstop of a digest this week, covering this week and the one prior to the July 4 holiday. Let me explain. No, it’s too much. Let me sum up.
In Washington DC, the federal judiciary cleared the way for the Trump Administration to proceed with portions of its agenda hugely significant to public interest law: the Supreme Court cleared the way for the Trump Administration’s effort to radically reduce and restructure the federal civil service (the State Department seems to be the first agency in line) and D.D.C. determined that the DOJ’s decision to terminate grants to immigration legal service providers is not subject to judicial review. In Congress, the President’s budget reconciliation bill passed, including significant changes to the Department of Education’s student loan programs. In the Executive Branch, the Department of Education completed a multi-day negotiated rulemaking process without reaching consensus with the civil society representatives it had invited and the Trump administration extended its hiring freeze through this October. Meanwhile, elsewhere in the United States, governments are adapting: New York City, Los Angeles, and Massachusetts expanded funding for immigrant legal services and Arizona funded civil legal aid within its state budget for the first time in history. Also at the city level, labor actions; Boston’s public defender strike drags on and NYC public interest lawyers look increasingly ready to start one of their own.
As always, these stories and more are in the links below.
Solidarity,
“The Office of Personnel Management sought to soften the importance of essay prompts for federal job applicants after critics warned the test would screen applicants based on how they’d help President Donald Trump’s agenda…OPM notified federal agency heads last week in a written notice that the essay questions outlined in a May 29 memo “must not be used as a means of determining whether the candidate fulfills the qualifications of a position.”…The notice represents a rare reversal on the Trump administration’s push to root out those disloyal to Trump and to cut tens of thousands of jobs from the federal workforce. The new memo was made public by Public Employees for Environmental Responsibility, a worker advocacy group that filed a complaint with the US Office of Special Counsel alleging that the new essay questions amounted to a loyalty test for nonpartisan civil servants.”
“The decision could result in job losses for tens of thousands of employees at agencies including the Departments of Housing and Urban Development, State and Treasury. The order, which lifted a lower court’s ruling that had blocked mass layoffs, was unsigned and did not include a vote count. That is typical in such emergency applications. Justice Ketanji Brown Jackson wrote a public dissent.”
“Federal agency leaders still face obstacles to implementing widespread layoffs, and some are even reversing course after the Supreme Court greenlit President Donald Trump‘s order to cut the public workforce.”
“The Merit Systems Protection Board reported that, so far this fiscal year, it has received 11,166 appeals, which is twice its typical workload. A backlog could emerge if a quorum is not restored to the agency to issue final decisions.”
“The memo, viewed by Splinter, changes the official policy surrounding probationary employees, flipping the script on how the end of a probationary period will generally go. If you were a potential employee, well, you might not be now. “If not terminated sooner, the appointment of an employee serving a probationary or trial period terminates [emphasis theirs throughout] before the end of the tour of duty on the last day of his/her probationary or trial period,” the memo states, “unless the appropriate DOC management official certifies that finalizing his/her appointment advances the public interest.“”
“According to multiple sources inside the Environmental Protection Agency, an “upset” Administrator Lee Zeldin has begun retaliating against agency staff who signed a Declaration of Dissent opposing his destructive tenure. This is pretty obviously illegal.”
“The Justice Department convinced a federal district judge to dismiss a lawsuit that challenged President Donald Trump‘s pause on funding for legal orientation service provider contracts to aid immigrants. DOJ’s decision to terminate immigrant assistance programs isn’t subject to judicial review, said Judge Randolph D. Moss of the US District Court for the District of Columbia on Sunday, granting in part the agency’s motion for summary judgment and dismissing the remainder of the suit from a dozen subcontractor groups.”
“In addition to temporary losses of federal funding, immigration nonprofits have also lost some of the pro bono support available to them, as major law firms allegedly have begun to turn down lawsuits challenging the administration’s immigration policies to avoid being targeted themselves…Immigration lawyers are facing increasingly prevalent accusations of illegal activity, such as encouraging their clients to exaggerate or lie about their persecution.”
“A former Bronx prosecutor who served as general counsel for New York City's asylum seeker operations will lead a new municipal office meant to help facilitate pro bono legal assistance[.]”
“Critics say a last-minute push by state lawmakers to shore up nonprofits in the face of looming federal budget cuts may be unconstitutional. The new law creating a unique committee to pass out up to $50 million in extra aid to Hawaiʻi nonprofit organizations this year has triggered a warning letter from a public interest law firm saying the plan would be vulnerable to legal challenges.”
“Critics [] say the changes could hurt students from low-income backgrounds. “There’s a lot of concern there that with these new caps, with the elimination of the grad plus program, these students just won’t have the options that they had to really go get their degrees,” said Sheffey.”
“The Department of Education (ED) began its final day of negotiated rulemaking (Neg Reg) with hopes of reaching a consensus on its proposed rules on changes to the Public Service Loan Forgiveness (PSLF) program. ED sent out updated proposed language Tuesday evening, and even provided a newer updated version just minutes into the session's start, but ultimately, consensus eluded the committee…Negotiators Abby Shafroth of the Student Loan Borrower Assistance Project and Betsy Mayotte of The Institute of Student Loan Advisors argued that while the higher standard was an improvement, it failed to address the core issue: the proposal grants the Secretary the power to adjudicate violations of complex laws (such as immigration or medical regulations) that fall far outside ED’s expertise.”
“Following a muddled consultation process with a panel of experts, the Department of Education is on its way to implementing that new policy, which would target people involved in whatever Secretary of Education Linda McMahon deems to be “illegal activities,” like assisting undocumented immigrants, supporting transgender people, and so-called terrorism (supporting Palestinians). But as the Associated Press points out, the possible wrongdoing is so open-ended that the policy could be used as a tool of retribution against a wide range of people and organizations:”
“With the ink barely dry on monumental trade deals and the 2017 tax cuts now permanently extended, Treasury Secretary Scott Bessent announced a pivotal new focus for his department: the nation’s sprawling student loan debt…He was quick to differentiate the upcoming Treasury approach from previous efforts, explicitly rejecting former President Joe Biden’s debt forgiveness strategies. “I do think that just forgiving student debt was unacceptable,” he asserted. Instead, Bessent promised a more nuanced and impactful solution. “I think that there is a firm and humane way to deal with the student debt crisis. And we are going to be focused on that here at Treasury,” he continued. The Secretary highlighted the significant burden student loans place on young Americans, noting that many graduate “post-college with the equivalent of a mortgage.””
Sam Halpert, NALP Director of Public Service Initiatives
Photo: Harris and Ewing Collection, Library of Congress
Hi Interested Public,
Thanks for your patience. (Last) week was quite eventful–even by the standards of 2025. The news below will bring you up to speed through last weekend–with a couple of exceptions where the information I had collected last week had already been superceded. Major news out of the Supreme Court last week; commentators moved swiftly to unpack what a ruling concerning the availability of “universal” injunctions as a remedy may mean for other Trump Administration policies currently enjoined by federal courts–including policies pertaining to federal reductions in force. Meanwhile, a draft purporting to be a plan to limit the availability of Public Service Loan Forgiveness to workers at certain employers leaked from the Department of Education.
High drama continues in the US Congress, as the Senate debates a budget bill which contemplates major changes to student loans and potentially federal benefits (student loan changes for current borrowers and changes to the structure of federal benefits were taken out by the Senate parliamentarian, when last I checked). At the state level, the Governor of Maryland implemented a hiring freeze, the Maine Commission on Public Defense Services warned it may run out of money, and the Oregon legislature approved a budget plan that included compensation incentives for public defenders to exceed state-imposed caseload limits (and provisions for slashing pay for defenders who don’t carry sufficient caseloads). In civil society, nonprofits work to adapt to ongoing changes to their funding environment, while the Department of Justice announced an investigation into the hiring practices of the University of California.
The Digest will be off on July 4th, and will return with stories from this week and next week on 7/11.
As always, these stories and more are in the links below.
Solidarity,
“The Supreme Court on Friday limited individual judges’ capacity to strike down government policy on a nationwide basis, a decision with potentially far-reaching impacts on how federal agencies carry out their work. The high court left in place some carve outs, however, including one that could—at least temporarily—protect a judge’s ruling that is currently blocking the Trump administration from carrying out widespread layoffs…In a footnote of the opinion, however, Barrett added that nothing in the decision “resolves the distinct question whether the Administrative Procedure Act authorizes federal courts to vacate federal agency action.” District court judges in both the larger RIF injunction and one more specifically tailored to the Education Department relied in part on the APA to support their findings.”
“Loans issued after July 1, 2027, would have fewer options for deferment or cancellation…Limit loans for graduate and professional students and parents; and eliminate graduate and professional PLUS loan program…Limit income-driven repayment options and allow payments made under a new program to count for people who currently use the public service loan forgiveness program.”
“The Education Department is planning to put new limits on which employers can qualify for the Public Service Loan Forgiveness program, according to a draft proposal obtained by an advocacy group. Any employers who engage in what the department calls “activities that have a substantial illegal purpose” could be kicked out of the program, and any payments that borrowers make while working for them won’t count after their employers are no longer eligible, according to the draft document.” [draft proposal here]
“In draft regulatory text circulated this week by the U.S. Education Department, the agency proposed stripping eligibility for Public Service Loan Forgiveness from organizations engaging in activities that have “a substantial illegal purpose.” Representatives from certain interest groups, including consumer advocates, borrowers and servicers, will debate the plan and its implications for the future of PSLF next week.”
“All provisions affecting the federal workforce in the GOP reconciliation bill have been removed from the Senate’s legislative text, after lawmakers convened over the weekend in an attempt to bring the bill closer to the finish line. As Republicans work to finalize their legislation by a self-imposed July 4 deadline, lawmakers have revised and taken multiple proposals out of the “One Big, Beautiful Bill” — including one provision that would have made all newly hired federal employees choose between at-will employment and a 10% increase to their Federal Employees Retirement System (FERS) contribution rate.”
“The City’s contract with Stay Housed LA, set to expire June 30, was approved for a five-year, $34 million extension by the City Council in April and signed by Mayor Karen Bass on May 1. However, City Attorney Hydee Feldstein Soto declined to approve the deal last week. A spokesperson for the City Attorney’s Office said Feldstein Soto views awarding it as a sole-source contract as violating the city’s charter, an issue which was not presented amidst the city council vote earlier this year.”
“Starting next month, nine Indiana counties, including Lawrence County, will participate in a pilot program offering partial state reimbursement for public defender costs in misdemeanor cases.”f
“Federal Reserve Chairman Jerome Powell told senators Wednesday that Congress might want to consider permitting greater dischargeability of student loans, questioning whether it is a "wise national policy" to treat such debt differently under the federal bankruptcy laws[.]”
Conflicts Over Diversity, Equity, Inclusion, and Accessibility
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.“
Sam Halpert, NALP Director of Public Service Initiatives
Photo: Harris and Ewing Collection, Library of Congress
Hi Interested Public,
Another major week for news. Most significantly, the Supreme Court lifted a preliminary order, allowing President Trump’s acts firing top officials at the MSPB and NLRB to stand pending the final outcome of litigation. Meanwhile, a lower court blocked the Trump Administration’s plan to transfer its student loan management from the Department of Education to the Small Business Administration. The US State Department has ceased issuing all student visas as it works to overhaul its approval process in order to scrutinize applicants’ social media profiles; students at Harvard weigh in on the personal effects of the Administration’s recent move to revoke visas at that institution specifically. Multiple stories discuss the nonprofit sector as civil society begins to feel the effects of federal funding cuts.
As always, these stories and more are in the links below.
Solidarity,
“The majority wrote that Mr. Trump could remove officials who exercise power on his behalf “because the Constitution vests the executive power in the president.” They wrote that this authority was subject to only “narrow exceptions recognized by our precedents.” In her dissent, Justice Kagan countered that the majority was chipping away at longstanding precedent that, she wrote, “forecloses both the president’s firings and the court’s decision to award emergency relief.”
…Weakening the power of the two boards is part of Mr. Trump’s campaign to reshape the government and the workplace. The Merit Systems Protection Board reviews federal employment disputes, while the National Labor Relations Board safeguards the rights of private-sector workers.”
“The Merit Hiring Plan released to agencies Thursday afternoon by the Office of Personnel Management…explicitly orders agencies not to take race and gender into consideration in hiring…Agencies are ordered to immediately stop releasing data on workforce demographics, and to stop hiring people based on race and gender. That data was key, proponents say, to understanding if there was widespread discrimination in hiring practices. The numbers will still be collected, just not released.”
“Hundreds of recently hired and subsequently fired employees at the Homeland Security Department will be part of a class action alleging their dismissals were unlawful after a Merit Systems Protection Board administrative judge granted the request. The DHS ruling was the first to come down after a consortium of lawyers filed similar challenges on behalf of fired probationary employees at 20 federal agencies.”
“A month ago, Disability Rights New Jersey, the state’s legal watchdog for people with disabilities, didn’t know if it could make payroll. Federal dollars the nonprofit depends on had been delayed or withheld without explanation by the Trump administration…Over the past month, Disability Rights New Jersey temporarily stopped accepting new clients and restructured how it handles requests for legal help. The pause came after five attorneys resigned.”
“Data from the Center for Effective Philanthropy (CEP) shows 36% of executives reported having either some or a lot a difficulty filling positions, down from 49% from CEP’s 2024 report. However, those executives reported still having difficulty pursuing organizational missions in a complex environment shaped by the current political climate and future economic uncertainty.”
“Skadden, after cutting a deal with President Donald Trump to take on causes he supports, is moving in the opposite direction by helping an immigrant try to avoid removal from the US.
“The State Department is temporarily halting interviews abroad with foreign citizens applying for student and exchange visas as it expands scrutiny of applicants’ social media posts…without specifying what could flag an applicant for rejection under a new social media policy. The statement noted that visa applicants have been asked to provide social media account information on forms since 2019.”
“At Harvard University and Harvard Law School, students and faculty have expressed “profound fear, concern and confusion” in response to the Trump administration's efforts to block international students from attending the school, according to court documents in the university's federal lawsuit against the Department of Homeland Security over the mandate.”
“How has Harvard supported its international student community?
When Harvard filed its suit in the district court to stop the action, we received a copy of the complaint from the school president and a message reiterating his support for international students and scholars on campus. And then we got an email from the international office where the very first line said, “You belong here.” This goes back to what I was saying about how it felt when I first started at Harvard Law, and it’s such an important message to hear right now. When the government is telling us that we are not wanted, our school is standing behind us.”
Conflicts Over Diversity, Equity, Inclusion, and Accessibility
“The Department of Justice (DOJ) has launched an investigation into a state prosecutor’s office—not for breaking the law, but for how the law is applied. This should concern anyone who believes in local control and limited government. In Minnesota, Hennepin County Attorney Mary Moriarty directed her team to consider race and age during plea negotiations. The policy’s stated purpose is to address racial disparities and account for youths’ still-developing brains—and although Moriarty emphasized that those factors alone do not justify departing from sentencing guidelines, the DOJ claims the policy might violate civil rights law.”
Sam Halpert, NALP Director of Public Service Initiatives
Photo: Harris and Ewing Collection, Library of Congress
Hi Interested Public,
Another major week for news. Most significantly, the Supreme Court lifted a preliminary order, allowing President Trump’s acts firing top officials at the MSPB and NLRB to stand pending the final outcome of litigation. Meanwhile, a lower court blocked the Trump Administration’s plan to transfer its student loan management from the Department of Education to the Small Business Administration. The US State Department has ceased issuing all student visas as it works to overhaul its approval process in order to scrutinize applicants’ social media profiles; students at Harvard weigh in on the personal effects of the Administration’s recent move to revoke visas at that institution specifically. Multiple stories discuss the nonprofit sector as civil society begins to feel the effects of federal funding cuts.
As always, these stories and more are in the links below.
Solidarity,
“The majority wrote that Mr. Trump could remove officials who exercise power on his behalf “because the Constitution vests the executive power in the president.” They wrote that this authority was subject to only “narrow exceptions recognized by our precedents.” In her dissent, Justice Kagan countered that the majority was chipping away at longstanding precedent that, she wrote, “forecloses both the president’s firings and the court’s decision to award emergency relief.”
…Weakening the power of the two boards is part of Mr. Trump’s campaign to reshape the government and the workplace. The Merit Systems Protection Board reviews federal employment disputes, while the National Labor Relations Board safeguards the rights of private-sector workers.”
“The Merit Hiring Plan released to agencies Thursday afternoon by the Office of Personnel Management…explicitly orders agencies not to take race and gender into consideration in hiring…Agencies are ordered to immediately stop releasing data on workforce demographics, and to stop hiring people based on race and gender. That data was key, proponents say, to understanding if there was widespread discrimination in hiring practices. The numbers will still be collected, just not released.”
“Hundreds of recently hired and subsequently fired employees at the Homeland Security Department will be part of a class action alleging their dismissals were unlawful after a Merit Systems Protection Board administrative judge granted the request. The DHS ruling was the first to come down after a consortium of lawyers filed similar challenges on behalf of fired probationary employees at 20 federal agencies.”
“A month ago, Disability Rights New Jersey, the state’s legal watchdog for people with disabilities, didn’t know if it could make payroll. Federal dollars the nonprofit depends on had been delayed or withheld without explanation by the Trump administration…Over the past month, Disability Rights New Jersey temporarily stopped accepting new clients and restructured how it handles requests for legal help. The pause came after five attorneys resigned.”
“Data from the Center for Effective Philanthropy (CEP) shows 36% of executives reported having either some or a lot a difficulty filling positions, down from 49% from CEP’s 2024 report. However, those executives reported still having difficulty pursuing organizational missions in a complex environment shaped by the current political climate and future economic uncertainty.”
“Skadden, after cutting a deal with President Donald Trump to take on causes he supports, is moving in the opposite direction by helping an immigrant try to avoid removal from the US.
“The State Department is temporarily halting interviews abroad with foreign citizens applying for student and exchange visas as it expands scrutiny of applicants’ social media posts…without specifying what could flag an applicant for rejection under a new social media policy. The statement noted that visa applicants have been asked to provide social media account information on forms since 2019.”
“At Harvard University and Harvard Law School, students and faculty have expressed “profound fear, concern and confusion” in response to the Trump administration's efforts to block international students from attending the school, according to court documents in the university's federal lawsuit against the Department of Homeland Security over the mandate.”
“How has Harvard supported its international student community?
When Harvard filed its suit in the district court to stop the action, we received a copy of the complaint from the school president and a message reiterating his support for international students and scholars on campus. And then we got an email from the international office where the very first line said, “You belong here.” This goes back to what I was saying about how it felt when I first started at Harvard Law, and it’s such an important message to hear right now. When the government is telling us that we are not wanted, our school is standing behind us.”
Conflicts Over Diversity, Equity, Inclusion, and Accessibility
“The Department of Justice (DOJ) has launched an investigation into a state prosecutor’s office—not for breaking the law, but for how the law is applied. This should concern anyone who believes in local control and limited government. In Minnesota, Hennepin County Attorney Mary Moriarty directed her team to consider race and age during plea negotiations. The policy’s stated purpose is to address racial disparities and account for youths’ still-developing brains—and although Moriarty emphasized that those factors alone do not justify departing from sentencing guidelines, the DOJ claims the policy might violate civil rights law.”
Get a weekly summary of news items that affect the public service legal community, with an emphasis on funding, job market, law school initiatives, and access-to-justice developments.
