CalNonprofits’ 2025 Sponsored Legislation
While we continue to navigate an onslaught of new threats from the Trump administration, CalNonprofits remains committed to State policy reforms that will strengthen the entire nonprofit sector. For the 2025 legislative session, we are sponsoring a series of bills to advance the health, stability, and effectiveness of our state’s nonprofits.
Strong partnerships between nonprofits and the State have always been important, but they are even more so now as we work together to guard against risks and threats at the federal level. For nonprofits to remain strong and well-positioned to provide quality services to Californians, we must continue to break down administrative barriers, eliminate redundant requirements, and ensure that resources reach communities in need.
In the months ahead, we will mobilize our networks and your support will be critical. Join us in learning more and stay tuned for opportunities to engage in these issues. 2025 will be a crucial year for ensuring nonprofits can thrive, deliver on their missions, and best serve all Californians.
California Nonprofit Equity Initiative Bills
AB 880 (Bennet/Limón/Umberg) : This legislation combines two bills from the last legislative session (SB 336 and SB 1246, both vetoed by Gov. Newsom) to continue our push for two key objectives: 1) remove a long-standing exemption in the state’s Prompt Payment Act and require timely payments for services rendered by nonprofits; 2) improve coverage of nonprofits’ indirect costs, consistent with the federal government’s approach.
Bill Position: SPONSOR
AB 1039 (Hart) : This legislation builds on the state’s existing advance payment practices for state grants and contracts with nonprofits by requiring all new grants and contracts administered by state agencies, beginning January 1, 2026, to provide advance payment to nonprofits. The bill also requires state agencies to include whether advance pay is available and at what rate in any notices about grants and contracts, including on the state’s grants portal.
Bill Position: SPONSOR
AB 944 (Macedo) : This bill provides nonprofits the flexibility to adjust how they deliver services during a state of emergency, as long as they still fulfill the purpose of their contract. Read the fact sheet here.
Bill Position: SUPPORT
Sustainable Participation of Nonprofits in CalAim
AB 324 (Menjivar) : This bill strengthens participation of community-based organizations (CBOs) as essential Medi-Cal providers through adequate funding and red tape reductions. Learn more about the current challenges for CBOs and the CBO Medi-Cal Coalition that CalNonprofits has joined to support this legislation. Read the bill fact sheet and the coalition support letter.
Bill Position: SPONSOR
Protect Funding Eligibility for Targeted Nonprofits
AB 1318 (Bonta) : This bill protects funding access for nonprofits at a time when the federal administration is targeting organizations with funding cuts and criminal prosecution, as well as threats of revocation of their federal tax-exempt status, if they provide social services to immigrants, vulnerable noncitizens, refugees, and asylum seekers. This legislation would allow nonprofit organizations to remain eligible for contract and grant opportunities by expanding the definition of a “qualified nonprofit organization” to include either federal 501(c)(3) tax-exempt status or state tax-exempt status. Stay tuned for more details about this bill.
Bill Position: SPONSOR
CalNonprofits will continue to work together to support and prepare our sector from future threats to undermine the basic services so many people rely on!
Keep tabs on our CalNonprofits Legislation Tracker for ongoing updates and to monitor bills we’re watching.
Policy hearings start up in March.
