Federal Activities

On July 4, 2025, the Congress passed H.R. 1, President Trump’s 2025 budget reconciliation bill, also known as the Big, Beautiful Bill Act. The final version of the bill contains sweeping changes, with most provisions expected to negatively impact the nonprofit sector. Key provisions include: 

OPPOSE: 

• Largest Medicaid Cuts in History — $1 trillion in cuts nationwide over 10 years, causing 11.8 million people nationwide to lose their health insurance. Adds work requirements, limits the use of the state provider taxes, changes administrative and application procedures, and requires the reverification of eligibility every 6 months.
  • An estimated 450,000-600,000 Oregonians will be impacted by new administrative requirements. Possibly 200,000 families and children will lose coverage.

• SNAP Cuts — $287 billion in cuts nationwide over 10 years, causing 3 million Americans to lose benefits, by expanding work requirements to 20 hours/week for able bodied adults by raising age limit from 55 years old to 64 years old.​ Increases state share of the cost to administer the program from 50% to 70%. States with high error rates would pay for part of the food costs, up to 15%.​
  • Oregon’s administrative error rate is 14.06%. The state would need to reduce the error rate below 6%, or they would have to pay 75% of administrative costs for running SNAP in the state, about $500 million every two years.

• 1% Floor for Charitable Contributions by Corporations— Estimated to eliminate $4.2–$4.8 billion in annual charitable giving. 

• 0.5% Floor on Charitable Giving for Itemizers — Further weakens incentives for and amount of charitable giving. 

• 1.4% tax to colleges and universities with a “student adjusted endowment” between $500,000-$750,000. – Decreases the financial resources available to nonprofits to advance their mission. 

SUPPORT: 

• Expanded non-itemizer charitable income tax deduction — further incentivizes charitable giving among the 90% of taxpayers who do not itemize their tax deductions. 

The bill’s projected $3.4 trillion deficit over the 2025–2034 period falls far short of addressing the nonprofit sector’s expanding role in filling gaps left by government and the private sector. In Oregon alone, H.R. 1 is projected to cut $15 billion in federal funding from Oregon for Medicaid, food benefits and other programs over the next 10 years. The state will be unable to absorb these substantial reductions in the coming years, making it unavoidable that many Oregonians will be negatively impacted by these federal actions. 

Refer to the Resources below to see a more in-depth breakdown of the provisions of the bill. Visit NAO’s State Activities page to learn more about the estimated state-level impacts of H.R. 1.

In 2025, the Trump administration began submitting multiple rescission packages to Congress, aiming to cancel billions of dollars in funds already approved by lawmakers. In July, both chambers narrowly passed H.R. 4, a $9 billion rescissions package that cut funding from the U.S. Agency for International Development (USAID), world health programs, the Public Broadcasting Service (PBS), and National Public Radio (NPR). The bill was signed into law just days before the July 18 deadline under the Impoundment Control Act, after which Congress would have been required to spend the authorized funds. 

NAO, together with our partner associations across the United States and the National Council of Nonprofits are keeping a close eye on whether Congress will attempt to enact a second tax reconciliation bill this term. Such a reconciliation package, would allow Congress to approve specific tax and spending measures with only a simple majority in the Senate, rather than the 60 votes typically needed.

While most experts felt it was unlikely that Congress would take up another reconciliation package (the process is very cumbersome and the Republicans have only a razor-thin majority in the House), the war in Iran and the need for supplemental military funding are increasing the chances that Congress might turn to allocate additional funds and take up this process. NAO will work to monitor any legislative package closely to ensure that harmful provisions impacting the nonprofit sector are not included, including those tax provisions that were initially proposed in earlier versions of H.R. 1, but that we were all collectively able to get removed from the final tax bill by talking with our Senators and Representatives. If Congress takes up a reconciliation bill, it is possible we’ll see renewed efforts to cut safety net programs, like Medicaid and SNAP, as these continue to be identified as areas of “waste, fraud, and abuse.”