Federal enforcement targeting diversity, equity, and inclusion (DEI) programs has intensified dramatically, with the False Claims Act emerging as a primary tool against federal contractors and grantees. Simultaneously, major tax, audit, and governance developments—including new IRS group exemption procedures, revised Uniform Guidance audit standards, expanded state audit requirements, and heightened Form 990 scrutiny—are reshaping nonprofit compliance obligations nationwide. This February 16, 2026 Navigator News Update provides nonprofit executives and board leaders with a comprehensive, operationally focused analysis of federal regulatory enforcement trends, human resources risks, IRS and accounting changes, and emerging state transparency requirements. Immediate action, careful governance oversight, and proactive compliance planning are essential in this rapidly evolving regulatory environment.
