Recent Executive Actions on Public Sector Loan Forgiveness and “Political Violence” Signal Shift in Scrutiny of Nonprofits

Two executive orders and presidential memorandums issued in 2025 reflect policy priorities that could indirectly affect §501(c)(3) organizations — particularly those engaged in advocacy, policy work, or educational activities. Though these directives do not have the legal authority to revoke tax-exempt status on their own, and the courts have ruled against the executive branch’s attempts to modify public service loan forgiveness, the administration continues to devise strategies to target organizations that are not aligned with their priorities. This article takes a closer look at two of those directives and their attempt to impact nonprofit organizations.