The federal government shutdown continues with devastating impacts across the nonprofit sector as reductions-in-force begin and 900,000 workers remain furloughed while critical programs face funding exhaustion. Office of Management and Budget Director Russell Vought announced substantial permanent layoffs have commenced, with the Department of Health and Human Services confirming employees across multiple divisions received termination notices. WIC nutrition services serving 7 million vulnerable Americans may run out of funding within weeks while nonprofits struggle to access frozen federal grants and face halted payments. The Department of Justice targets the Open Society Foundations with terrorism-related investigations as regulatory pressure intensifies. Meanwhile, organizations navigate new state compliance requirements including Washington’s expanded sales tax, Massachusetts pay transparency mandates, and Maryland’s strict data privacy law. This update provides essential guidance for nonprofit leaders managing unprecedented operational and regulatory challenges.
