Congress doesn’t usually move to a boil, and that’s worth remembering during National Slow Cooking Month. Some policy dishes come together fast, but most are built the way any good slow-cooker meal is — ingredients added over time, heat adjusted gradually, and plenty of moments where you lift the lid just to see how things are coming along.
In 2025, Congress had plenty on the stove that directly affects the charitable sector. Some hearings grabbed headlines and drove public debate; others quietly shaped narratives behind the scenes. Bills were introduced that may not have crossed the finish line but still seasoned the conversation, and oversight activity ranged from a gentle simmer to a full-on boil. For nonprofits and philanthropic leaders, this is exactly why advocacy can’t wait until the dish is “done.” The slow-cooking phase — when ideas are forming, pressure is building, and attention is uneven — is when engagement matters most, because once policy is fully plated, the chance to influence the recipe is already gone.
Federal Funding Deadline Looms as Shutdown Risk Persists
With the current Continuing Resolution (CR) set to expire on January 30, 2026, Congress is once again racing to prevent a lapse in federal funding. The CR, enacted in November to end last year’s shutdown, temporarily funded much of the government while lawmakers worked to finalize full-year appropriations. Since then, the House has advanced several spending bills, including a Homeland Security funding measure that passed on a narrow, largely party-line vote, while other appropriations packages have moved forward with bipartisan support.
Despite that progress, key funding decisions remain unresolved in the Senate, where Democratic lawmakers have signaled opposition to moving forward with a broader spending deal that includes Department of Homeland Security funding in light of the killings of Minneapolis residents Alex Pretti and Renée Nicole Good. With negotiations ongoing and no agreement finalized, Congress faces a familiar set of options in the final days before the deadline: Reach a deal on remaining appropriations, pass another short-term CR, or risk another partial government shutdown affecting agencies still operating under temporary funding.
Johnson Amendment Lawsuit
The legal challenge to the Johnson Amendment in National Religious Broadcasters v. Long has reached an important procedural juncture following an attempted third-party intervention by Americans United for Separation of Church and State (AU). The case has drawn heightened attention for its potential to reshape long-standing boundaries governing 501(c)(3) organizations — particularly religious nonprofits — and their participation in political activity, as the court considers a proposed consent judgment that would permit certain political statements during worship services.
After hearing oral arguments on both the proposed consent decree and AU’s motion to intervene in late November, Judge J. Campbell Barker denied AU’s request to join the case as a party in a December ruling. The court concluded that AU lacked sufficient legal standing to intervene, finding that the organization did not have a direct enough connection to the proposed settlement. Following that decision, the court stayed proceedings and administratively closed the case for 60 days to allow time for a possible appeal. AU has until February 10, 2026, to appeal the intervention denial; if no appeal is filed, the court is expected to move forward with consideration of the consent judgment, potentially weighing AU’s arguments in an amici curiae capacity. While AU’s exclusion limits who may formally defend the Johnson Amendment in this litigation, the outcome of the case carries significant implications for the nonprofit sector broadly — raising questions about how charitable organizations safeguard their tax-exempt status, manage political risk, and navigate the boundaries between mission-driven advocacy and partisan engagement.
Affordable Care Act Subsidies at a Crossroads
The Affordable Care Act (ACA) remains at the center of a high-stakes political tug-of-war following the expiration of enhanced premium tax credits at the end of December 2025. While the House has passed legislation to extend these subsidies for an additional three years, that bill’s future remains uncertain, leaving more than 20 million Americans facing the prospect of significant increases in their health care costs. Any further delay in congressional action forces families to navigate a system in which the affordability of coverage is increasingly shaped by shifting partisan priorities.
With national open enrollment set to close on January 31, 2026, several state-based marketplaces have extended their enrollment windows to provide residents additional time to reassess coverage options amid rising costs and policy uncertainty. Many enrollees now face stark choices: absorb premium increases projected to exceed 20% for the second-lowest-cost silver plan or forgo coverage altogether. According to the Centers for Medicare & Medicaid Services (CMS), approximately 22.8 million people have enrolled for 2026, representing a decline of roughly 1.4 million compared with prior years — an early signal of mounting affordability pressures and a potential retreat from the individual insurance market if subsidy relief is not restored.
Ways and Means Letter Signals Heightened Scrutiny of Tax-Exempt Organizations
On January 20, 2026, Republican members of the House Committee on Ways and Means sent a letter to Acting IRS Commissioner Scott Bessent and IRS CEO Frank Bisignano requesting information about IRS oversight of tax-exempt organizations. The letter points to allegations emerging from an ongoing investigation into Minnesota’s Medicaid Housing Stabilization Services program and raises questions about whether existing IRS compliance and monitoring systems are sufficient to detect potential misuse of nonprofit structures. While the investigation referenced in the letter remains unresolved, the letter frames it as evidence of broader vulnerabilities within federal oversight mechanisms and urges the IRS to expand enforcement and data-sharing efforts across the tax-exempt sector.
Although the letter does not propose specific legislative changes, its broad framing has raised concerns among nonprofit observers about the possibility of expansive enforcement actions based on limited or unresolved cases. This approach coincides with the reintroduction of legislation in both chambers — S. 3554 in the Senate and H.R. 6800 in the House — that would amend the Internal Revenue Code of 1986 to terminate the tax-exempt status of organizations determined to support terrorism; this bill largely reprises language from H.R. 9495, the Stop Terror-Financing and Tax Penalties on American Hostages Act from the 118th Congress, which sparked significant pushback from nonprofit advocates and civil liberties groups over concerns about broad enforcement authority. Taken together, the letter and the legislation reflect a growing willingness among some lawmakers to pursue heightened scrutiny of nonprofits, prompting questions about due process, proportionality, and the potential chilling effects on legitimate charitable activity.
Federal Freeze on Child Care Subsidies
The start of 2026 has brought immediate and severe funding restrictions to vital child care services across the nation. Citing allegations of systemic fraud and misuse within state-administered programs, the U.S. Department of Health and Human Services (HHS) has frozen funding tied to three critical program — the Child Care and Development Fund (CCDF), Temporary Assistance for Needy Families (TANF), and the Social Services Block Grant (SSBG). This heightened federal oversight currently targets five states — California, Colorado, Illinois, Minnesota, and New York —disrupting services for approximately 1.3 million children from low-income families who rely on these programs for essential care and early education.
These programs do more than support child care access; they also provide educational programming and employment supports that enable parents and caregivers to remain in the workforce. By abruptly freezing these funding streams, the federal government has placed significant strain on the child care workforce, forcing providers to consider staff reductions, reduced enrollment, or full program closures. For affected families, the freezes pose a direct threat to economic stability, leaving fewer viable care options as they work to support their households. State officials argue that these actions ultimately harm the very residents the programs are designed to serve, compounding the real-world consequences of partisan policy decisions at the federal level.
Registration Open: 23rd Annual Foundations on the Hill 2026
Registration is open for the 23rd annual Foundations on the Hill 2026, hosted by United Philanthropy Forum in partnership with Independent Sector and Council on Foundations. Set for March 16-19, 2026 in Washington, D.C., this four-day event is an opportunity for philanthropic leaders, policy advocates, and sector partners to come together, strengthen our collective voice, and advance community well-being through coordinated advocacy.
Don’t miss your chance to be part of this landmark moment — with over 400 thought leaders, more than 250 strategic Capitol Hill and agency meetings, and a full agenda designed to build long-term sector readiness. Whether you’re representing a foundation, infrastructure organization, or nonprofit partner, registering early ensures you’ll secure a spot and help shape how the sector shows up in Washington together.
Travis Swanson is the Government Relations Manager at Independent Sector
