Government Affairs Update: Win for Nonprofit Orgs, Analysis of Proposed Rules on Federal Grantmaking, and Advocacy for FY27 Funding

The political landscape in Washington, DC continues to evolve daily. Chorus America needs to hear from you: How are the federal government’s actions affecting your work? All stories of specific impact are welcome. Please share your experience here. Thank you to those members who have already shared their stories with us. 

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These government affairs updates are provided for informational purposes only and are not intended as legal advice. Nonprofit arts organizations should consult with legal counsel for guidance specific to their circumstances.

Win for Nonprofit Organizations and Public Service Loan Forgiveness

Two courts have blocked new U.S. Department of Education regulations that would have allowed the Trump administration to disqualify organizations from the Public Service Loan Forgiveness (PSLF) program. The decision marks a major victory for borrowers with federal student loans, ensuring that student loan forgiveness under PSLF can continue without interruption.

The proposed regulations would have granted the department unilateral authority to deny PSLF eligibility by determining that certain employers engaged in disfavored activities. The courts ruled that the regulations exceeded the department's statutory authority and conflicted with congressional intent for the PSLF program.

While the legal challenge may continue through appeals, no PSLF restrictions are currently in effect, and eligible borrowers may continue to receive loan forgiveness. (Source: Forbes)

According to court documents, the lawsuit was brought by 22 states, the District of Columbia, five cities and counties, five nonprofit employers, five employee associations, and more than 100 amici. No amici appeared in support of the defendants.

Learn more:

• Court Decision, U.S. District Court for the District of Massachusetts

Press Release, National Council of Nonprofits 

New Resource: Arts Analysis of Proposed Rules on Federal Grantmaking

As previously reported, the Office of Management and Budget (OMB) has proposed changes to the Uniform Guidance for Federal Awards, which governs how federal grants and other federal financial assistance are awarded and managed.

A coalition of national arts service organizations, including Chorus America, has developed an analysis of the proposed rules outlining their potential impact on the nonprofit arts community.

The proposed changes are extensive and, if finalized, would significantly change how federally funded projects are solicited, managed, and reported. The proposal would apply across 40 federal agencies, including the National Endowment for the Arts, the National Endowment for the Humanities, and the Institute of Museum and Library Services.

Comments to OMB are due Monday, July 13, 2026. All nonprofit arts organizations are encouraged to submit comments, particularly those that include specific examples of how the proposed changes would affect their work and service to their communities.

Resources:

• Read the Analysis for Arts Organizations on OMB Proposed Rulemaking
• Submit comments to OMB by July 13, here.
• Read Letter from Senator Collins (R-ME), Chair of Senate Appropriations to OMB Director Russel Vought opposing parts of the OMB Proposed Rulemaking.

Update: Advocacy for FY27 Funding for Cultural Agencies

The House Appropriations Committee has approved all 12 FY27 appropriations bills, including a proposal to reduce funding for the National Endowment for the Arts (NEA) to $135 million (currently funded at $207 million).

In addition to the proposed funding reduction, the House Interior Appropriations bill includes language directing a greater share of NEA funding to state and regional arts agencies. Arts advocates, including the National Assembly of State Arts Agencies (NASAA), continue to support the long-standing federal-state partnership that directs 40 percent of NEA grant funding to state and regional arts agencies rather than increasing that share.

As NASAA explains:

"This approach has provided stability, equity, and nationwide reach for decades, ensuring that federal arts investments benefit every state and jurisdiction while preserving the NEA's ability to fulfill its broader mission."

Arts advocates are now communicating with Senate appropriators as the Senate develops their FY27 spending bills to preserve both overall NEA funding and the long-standing 40 percent allocation to state and regional arts agencies.

Advocacy and communication with Congress remain important, even though Congress is likely to enact a continuing resolution at the end of this budget cycle rather than complete all FY27 appropriations bills.

Amy Fitterer is a dynamic leader in association management, government affairs, and the performing arts. She has consulted for OPERA America and Partners in Performance, supporting advocacy and strategic planning efforts. As Executive Director of Dance/USA (2011–2020), she led its transformation into a more equitable and financially strong organization, launching initiatives like Dance/USA Fellowships to Artists. Previously, she directed government affairs for OPERA America and Dance/USA, successfully advocating for arts funding and policy improvements. A former ballet dancer and pianist, Amy holds degrees from Indiana University and Columbia University. She lives in northern Virginia with her family and enjoys dance, music, and fitness.