Note: This article was updated on March 17 to reflect the latest developments.
The Senate has passed and the President signed a continuing resolution (CR) to fund the government through September 30, 2025.
What is in the continuing resolution that nonprofits need to know?
The CR maintains most federal funding at current levels until September 30th, and also includes targeted increases for:
- Fully funding veterans health care services and benefits
- Increasing WIC funding by $500 million
- Increasing funding for the Commodity Supplemental Food Program, which supports low-income senior citizens
The CR includes several additional budget items of interest to nonprofits:
- Includes $22.5 billion for the Federal Emergency Management Agency’s (FEMA) Disaster Relief Fund and extends FEMA’s national flood insurance program. (Total appropriations to FEMA in 2024 were $49.26 billion.)
- Provides $3.4 billion for the Community Development Block Grant Program (CDBG), maintaining the same funding level from FY 2024.
- Extends the Temporary Assistance for Needy Families (TANF) program.
- Includes numerous healthcare extenders through Sept. 30, including funding for:
- Community Health Centers (CHCs),
- National Health Service Corps,
- Special Diabetes Program,
- Teaching health centers that operate graduate medical education (GME) programs, and
- Expiring Medicare and Medicaid provisions that support rural hospitals and communities through Sept. 30.
Notable funding reductions in the CR include:
- Rescinding $160 Million in obligated ARPA Funds.
- “Obligated funds” are those that have been committed to specific programs or projects but have not yet been fully spent.
- Rescinding these funds effectively pulls back money that was previously set aside for pandemic-related initiatives. This could impact state and local governments, healthcare providers, and community programs that were relying on these funds for ongoing pandemic recovery efforts.
- Funding for State and Tribal Assistance Grants (STAG).
- The STAG program provides funding to state and tribal governments for environmental infrastructure projects, including clean water and drinking water projects, hazardous waste cleanup, and air pollution control programs.
- Cutting this funding means that states and tribes will have fewer federal dollars to support their environmental initiatives. This could force states to either scale back projects or seek alternative funding sources, potentially delaying infrastructure improvements for clean water, air, and waste management.
For full details on the continuing resolution’s effects on funding, find our detailed explanation here.
The Bottom Line
The CR extends government funding until Sept. 30, 2025, at which time either another CR or an FY 2026 funding package would need to be enacted to avoid a shutdown.
What happens next?
The larger budget debate for FY 2026 will continue throughout the spring.
The House’s budget resolution, passed on Feb. 25, calls for $2 trillion in spending reductions, including $230 billion in cuts to the Department of Agriculture and $880 billion in reductions under the Energy and Commerce Health Subcommittee. While these figures do not explicitly target programs like SNAP and Medicaid, many experts believe achieving such cuts without affecting these programs would be extremely difficult, if not impossible. Meanwhile, the Senate passed a budget resolution calling for $4 billion in cuts. These independent resolutions will now need to follow the reconciliation process to achieve one budget resolution that can pass both the House and Senate for signature by the President.
Republicans are expected to begin their FY 2026 appropriations process later in the spring, alongside budget reconciliation efforts. Additionally, President Trump has not yet released his FY 2026 budget, which will provide insight into his top policy priorities and information on how these priorities will impact federal deficits, economic growth, and more.
Congress will also need to address the debt limit, either as part of a budget reconciliation bill or in a separate measure. The Treasury Department began to deploy “extraordinary measures” on Jan. 21 to avoid breaching the debt ceiling.
What can nonprofits do?
Nonprofits should turn their attention to the 2026 budget process and the potential for substantial cuts across both discretionary and mandatory spending programs.
Nonprofits can contact their elected officials and advocate for:
- A balanced approach to funding cuts and tax policy
- Precision in budget reductions to minimize harm to communities
- Transparency in spending decisions to prevent abrupt funding disruptions
Your voice matters. Contact your representatives to ensure thoughtful and strategic budget decisions that protect nonprofit funding and vulnerable populations. For ongoing updates, please visit our US Policy Changes Resource Hub.
