Federal policy developments are fundamentally reshaping the operating environment for nonprofit organizations. From a new fraud enforcement task force explicitly targeting federally funded nonprofits, to sweeping Medicaid cuts and intensified grant compliance demands, the regulatory landscape has grown more complex and consequential than at any point in recent memory. Independent contractor classification rules face revision, proposed SAM.gov certifications now criminal liability risk, and the Johnson Amendment’s future hangs in the balance. Organizations must act now—auditing internal policies, diversifying revenue, and engaging legal counsel—to protect mission continuity in an era of unprecedented federal scrutiny.