Our Time Together

February 11, 2025

This year’s CEO Summit was an inspiring gathering where ideas ignited, partnerships flourished, and friendships deepened. Our goal is always to create a program with unique, high-impact content, and this year was no exception. Over two and a half days, we didn’t just discuss today’s challenges—we explored the possibilities of tomorrow. And we did it together—united by our shared faith tradition of service.

When we come together, good things happen. We can move mountains. We can make a difference.

We launched the summit with Matt Ranen, whose 10-year scenario planning workshop helped us think beyond the present while staying grounded in today’s realities. Neuroscience shows that envisioning long-term futures sparks creativity and strengthens resilience—qualities that make us more effective leaders.

Rodney Whitlock and Mark McClellan provided key insights into the priorities of the new administration and Congress, fueling critical discussions throughout the summit. Together, we reflected on the impact of recent executive orders on families, our programs, and our communities. We were also joined by thought leaders and experts from across the country, including Patrick Briaud, Cheryl FisherRon Hetrick, and Davis Baird, who led deep-dive breakout sessions on public-private housing partnerships, healthcare collaboration, the ‘forgotten middle,’ and workforce challenges.

On Wednesday, we turned our focus to artificial intelligence with Nabiha Syed, and Nathan Chappell—examining our responsibility and the partnerships necessary to lead responsibly in this space.

We also took time to celebrate leadership, honoring this year’s distinguished award recipients—Sam Sipes, Colleen Frankenfield, and Linda Timmons. Throughout the summit, we identified new strategies and collaborative efforts to strengthen our collective leadership. With guidance from our resident theologian, Mark Huber, our days were framed with moments of prayer and reflection, reinforcing our shared purpose.

Looking ahead, we anticipate challenges that will test our fortitude and stretch our creativity. But that is the beauty of this community—our strength lies in our unity. Together, we will transform these moments into opportunities to lead, innovate, and create lasting impact. And as we move forward, our united faith-based voice will not only be heard—it will lead the way.

It is greatly appreciated as we continue to work forward, guided by our shared faith tradition of service in, with and for community. We are reminded that as Lutherans, we are called to do God’s work in a complex world. And with all the current confusion and disruption, we remain steadfastly committed to our work with all partners across federal, state and local levels and efforts. As you know, it is in these times that also bring clarifying moments, and this reminds us of the essential nature of our work and the work of our members in meeting the needs of all individuals and communities across the country, while also supporting the firm resolve to push forward.

You Won’t Want to Miss It!

 

Alesia Frerichs is the President & CEO of Lutheran Services in America.

Update: Federal Funding Freeze

February 11, 2025

The federal funding freeze announced by the Office of Management and Budget (OMB) on January 27 created widespread uncertainty in our sector. The directive temporarily blocked disbursement of federal grants and loans—excluding programs like Social Security, Medicare, Medicaid, and SNAP—to ensure compliance with recent executive orders.

Still, initial confusion about the directive’s scope led to intended and unintended disruptions, including delays in different types of program funding. Although OMB later clarified that many essential programs would continue without interruption, concerns remain regarding the impact on Section 8 housing vouchers, school food programs, and other key initiatives.

In response, lawsuits have been filed by nonprofits and state governments. On February 3, a federal judge granted a temporary restraining order, halting the freeze. This follows a similar ruling by another judge after a separate lawsuit. Despite these legal interventions, reports of payment delays continue.

Lutheran Services in America president and CEO Alesia Frerichs issued a statement highlighting the disruptive effects on Lutheran social ministries. We are actively engaging with coalition partners and monitoring developments.

TAKE ACTION:

  • We encourage you to join us in taking action by calling your members of Congress and governors to express concerns about the funding freeze’s impact.
  • Please share information on any interruptions or challenges your organization is still experiencing. Contact Sue Polis or Sarah Dobson.

Sue Polis is Vice President of Public Relations and Government Affairs at Lutheran Services in America. Sarah Dobson is Senior Director of Advocacy and Public Policy at Lutheran Services in America.

New Americans and the Lutheran Response

February 11, 2025

Three weeks into the new administration, Lutheran social ministry finds itself juggling multiple challenges at once. A recent tweet amplified by Elon Musk spread false claims about Lutheran social ministries, questioning our legitimacy and use of federal funds. This misinformation quickly gained traction on social media.

Lutheran Services in America acted swiftly to coordinate a comprehensive response. Collaborating with Bishop Eaton, Global Refuge, and community partners, we aligned messaging and mobilized grassroots support. Member organizations shared their immediate needs, ensuring they could continue to serve their communities effectively.

This coordinated effort received strong support both inside and outside the faith community. Many people who have been touched by our work shared their stories about how Lutheran social ministries saved their lives. Together we ensure that individuals and communities relying on our services can continue to live full and active lives. As Martin Luther reminds us, “God does not need your good works, but your neighbor does.”

Alesia Frerichs is the President & CEO of Lutheran Services in America.

Threats to Medicaid in 2025: Take Action with Us

February 10, 2025

Based on recent statements and policy agendas from Congressional majority leaders who now control both the House and the Senate with the start of the new Congress, it is clear that they are seeking deep cuts to Medicaid and other domestic programs. Lutheran Services in America has two opportunities for you to join us to protect Medicaid.

  • Join us on February 13 at 1 p.m. ET for the next session of our Capitol Conversations series, “What’s at Stake: Medicaid at Risk in the Expiring Tax Cuts and Jobs Act.
    • This webinar will provide a unique opportunity to hear directly from key policymakers, leading experts, and Lutheran Services in America staff as we explore the latest legislative developments under the new Congress, the risks they pose to Medicaid, and what’s at stake for our network and the communities we support.
  • Take Action: We invite you to use our advocacy tool to  urge your lawmakers to protect Medicaid and oppose any legislation that seeks to cap, cut, or block grant Medicaid. We encourage you to personalize the message, including stories of how important Medicaid is to the work that you and your organization do, and to share this message with your colleagues and partners.

This is a critical moment for action. Join us in using our united faith-based voice to strengthen our collective advocacy and ensure our mission remains at the heart of this national conversation.

Sarah Dobson is Senior Director of Advocacy and Public Policy at Lutheran Services in America.

Leadership of Key Congressional Committees Finalized

February 10, 2025

With Republicans in the majority in both chambers of Congress, leadership changes on key committees that affect healthcare, workforce, and housing policy are now finalized. Lutheran Services in America will engage these leaders in partnership with members to strengthen relationships and advance advocacy priorities.

HOUSING: Across our network, we are committed to addressing housing insecurity as an economic and health crisis. Our work in Congress on this issue will focus on the Senate Banking, Housing and Urban Affairs Committee, now chaired by Sen. Tim Scott (R-SC) with Sen. Elizabeth Warren (D-MA) serving as the lead Democrat, and the House Financial Services Committee, led by Rep. French Hill (R-AR) and Rep. Maxine Waters (D-CA).

HEALTH & WORKFORCE: Turning to healthcare and workforce issues, multiple committees have jurisdiction over various areas of the law. The Senate Health, Education, Labor and Pensions (HELP) Committee will now be led by Sen. Bill Cassidy (R-LA), with Sen. Bernie Sanders (I-VT) serving as the lead minority member.  At the Senate Finance Committee, which oversees health programs under the Social Security Act, including Medicare, Medicaid, and the Children’s Health Insurance Program (CHIP), Sen. Mike Crapo (R-ID) has become chair, and Sen. Ron Wyden will lead Democrats on the panel.

In the House, the Energy and Commerce (E&C) Committee has broad jurisdiction over healthcare and the regulations and laws that govern the sector, while the Ways and Means Committee has jurisdiction over revenue-related aspects of the Social Security system, Medicare, and social services programs, including foster care and adoption programs—and like Senate Finance, also has a key role in shaping tax policy, including an expected 2025 tax bill. Finally, the House Education and Workforce Committee has jurisdiction over education, workforce development, and workforce policy.

Here is where things stand with key House committees:

  • House Energy & Commerce: Brett Guthrie (R-KY) was elected as chair while Rep. Frank Pallone (D-NJ) will serve as ranking minority member for Democrats.
  • House Ways & Means: Rep. Jason Smith (R-MO) will hold the top spot at Ways & Means (W&M). Rep. Richard Neal (D-MA) will remain in his role as the committee’s top Democrat.
  • House Education and Workforce Committee: Rep. Tim Walberg (R-MI) will be the new Republican chair, with Rep. Bobby Scott (D-VA) leading the Democrats.

Contact Sarah Dobson for more information.

Sarah Dobson is Senior Director of Advocacy and Public Policy at Lutheran Services in America.

Early Administrative & Congressional Action Expected: Threats to Medicaid in 2025 and Broader Federal Policy Outlook

December 19, 2024

Early Administrative & Congressional Action Expected: Threats to Medicaid in 2025 and Broader Federal Policy Outlook

By Sue Polis

With the new year, we will welcome the new administration and Congress and prepare for the work ahead. As a $26 billion network largely funded through Medicaid and other federal programs, understanding the changing policy landscape is critical to our shared success. The following is meant to provide an overview of key issues we are tracking related to federal policy and member interests.

Potential Early Administrative Actions Specific to Medicaid and Long-Term Care

We may see some shifts early on through administrative action that would impact Medicaid, including:

  • Delay of implementation of rules meant to streamline Medicaid enrollment and renewal.
  • Approval of Medicaid waivers with work requirements and/or the delay of implementation or new rules to undo the recent Medicaid Access Rule.
  • Loosening regulations governing skilled nursing facilities (SNFs) and specifically, rolling back the staffing minimum on SNFs.

Early Congressional Threats to Medicaid

With the Tax Cuts and Jobs Act (TCJA) of 2017 set to expire next year, cuts to Medicaid are possible as Republicans move to reauthorize the legislation. Through the TCJA, corporate tax cuts were largely made permanent, while the individual income and estate tax cuts were largely temporary and expire at the end of tax year 2025.

Based on Congressional Budget Office (CBO) estimates and Republican plans, which include efforts to make the expiring tax cuts permanent, the potential price tag could be as high as $4 trillion over the next 10 years. With President-elect Trump signaling that Medicare, Social Security and spending on defense are off the table to pay for permanent tax cuts, that leaves Medicaid and the Affordable Care Act to potentially make up the difference. We expect action early in the new year that could impact Medicaid, with Senate Majority Leader John Thune (R-SD) signaling Congress may make changes through a two-step budget reconciliation process that would start as soon as January 20. We will continue to monitor efforts and will ask you to send a letter to Congress to urge them to protect Medicaid in any budget negotiations next year.

There are a number of threats or ways Medicaid could be impacted, which include:

  • Block grants: Block granting Medicaid effectively changes the structure of the program because a set amount of federal money is provided to each state and notably, it does not change if enrollment rises, the cost of care rises or new health threats emerge. Some proposals to date include small increases each year and with the actual cost of care already not covered, this would widen the gap. While block grants could range in size, most proposals call for deep cuts. Example: A 2017 legislative proposal would have cut federal funding by 25% over 10 years and 30% over 20 years (CBO estimate of BCRA).
  • Per Capita Caps: Essentially, each state receives a capped allotment per enrollee and while the cap may slightly increase each year, it is not set up to keep with the actual cost of care or anticipate new health threats (which makes an existing challenge worse). While in theory the cap can be of any size, previous proposals have always included massive cuts.
  • Cutting Federal Medicaid Match or FMAP: The FMAP is the portion of Medicaid costs that the federal government pays to states, which varies state-to-state based on a formula. In states that have expanded Medicaid under the Affordable Care Act, an enhanced FMAP effectively covers 90% of costs. Anticipated cuts to the FMAP would effectively eliminate the enhanced FMAP producing a massive cost shift to states – which in most cases produces a gap that could not be covered. The result is effectively an end to Medicaid expansion in several states which effectively results in massive cuts in eligibility and enrollment.
  • Work Requirements: Proposals that call for work requirements for eligibility in Medicaid effectively result in cuts as they create more red tape and cause people to lose their health coverage. The Congressional Budget Office (CBO) has estimated that past work requirement proposals cut $109 billion from federal Medicaid over 10 years. Data shows most working age adults enrolled in Medicaid already work, and work requirements do not increase employment. Exceptions for people with disabilities and caregivers have generally not worked as intended and, in effect, force decisions between work and Medicaid.
  • Repeal of Streamlining Eligibility and Enrollment Rule: As noted above in expected administrative actions, repeal of streamlining enrollment is essentially a $164 billion cut to Medicaid over ten years according to CBO estimates. The rule change will impact people with disabilities by adding administrative burdens to continuation of coverage.
  • Restricting Provider Taxes: Taxes on providers and insurers help states generate funding for their portion of Medicaid costs; every state has some version of these taxes that are regulated by federal law and have been part of Medicaid for decades. Amid existing state budget challenges, any restrictions in provider taxes will essentially produce cuts to Medicaid.

Non-Profit Charitable Tax Outlook

As noted above related to the expiring Tax Cuts and Jobs Act of 2017 (TCJA) and the need to find revenue to make the estate tax and personal income tax cuts permanent, a key area of focus is also the non-charitable tax deduction. As noted in the “Reining in America’s $3.3 Trillion Tax-Exempt Economy” report, which is being used to inform legislation on Capitol Hill, Lutheran Services in America is working with Leadership 18 to monitor and inform on-going discussions with a focus on restoring and making permanent the nonitemizer deduction and specifically to pass the bipartisan Charitable Act (H.R. 3435/S. 566). At present, across L18 supporting organizations, we are pulling together shared resources including materials for outreach to Senate Finance and House Ways and Means Committee members.

Non-profit organization status related to terrorism

Moreover, we are also monitoring a bill (H.R. 9495) that would essentially strip non-profit status from organizations deemed as supporting terrorism. We are working through a non-profit coalition of partners including the National Council of Nonprofits to voice opposition related to Section 4 of H.R. 9495 that would provide broad authority to the Secretary of the Treasury to revoke non-profit status without requiring the Secretary to share full evidence or reasoning with accused nonprofits.

More Managed Care

And while much remains uncertain, the continuing shift towards managed care and value-based payment is likely to pick up speed. With the nomination of Dr. Mehmet Oz to lead the Centers for Medicare and Medicaid Services (CMS), a lot of attention is being focused on his past statements related to Medicare Advantage. Specifically, a June 2020 op-ed authored by Dr. Oz and George Halvorson, the former CEO of Kaiser Permanente, called for expanding “Medicare Advantage for All.” We expect a lot of scrutiny through the confirmation process, especially from Democrats, in the coming weeks about Dr. Oz’s financial ties to Medicaid Advantage plans.

We will continue to monitor and share updates on all of these issues and efforts into the new year when we expect new legislation and action to commence.

For more information, contact:

Sue Polis at Spolis@lutheranservices.org or Sarah Dobson at Sdobson@lutheranservices.org or Bill Kallestad at Bkallestad@lutheranservices.org.

Sue Polis is Vice President of Public Relations and Government Affairs at Lutheran Services in America.

Leadership of Key Congressional Committees Comes into Focus

December 19, 2024

All House and Senate election results have been finalized and it is clear that Republicans will control the Senate and also lead with a slim majority in the House of Representatives. Party leaders have begun to finalize which lawmakers will lead key committees with jurisdiction over health and related workforce issues. Retirements, limits on length of service in leadership roles, and preference of party leaders will all result in changes to committee chairs and ranking members.  The work of our policy team and our network with these committees will be crucial to advancing our advocacy priorities for the coming year during the 119th Congress.

Several committees in each chamber have jurisdiction over various elements of health care. The Senate Health, Education, Labor and Pensions (HELP) Committee plays a crucial role in shaping national policies related to healthcare and the workforce, while the Senate Finance Committee oversees health programs under the Social Security Act, including Medicare, Medicaid, and the Children’s Health Insurance Program (CHIP), along with their role in shaping tax policy, which will be key in 2025 with the expiring Tax Cuts and Jobs Act (TCJA) of 2017. Sen. Bill Cassidy (R-LA) is poised to lead the HELP Committee, with Sen. Bernie Sanders (I-VT) expected as lead Democratic caucus member. Sen. Mike Crapo (R-ID) is in line to lead the Finance Committee.

In the House, the Energy and Commerce (E&C) Committee has broad jurisdiction over healthcare and the regulations and laws that govern the sector, while the Ways and Means Committee has jurisdiction over revenue-related aspects of the Social Security system, Medicare, and social services programs, including foster care and adoption programs—and like Senate Finance, also has a key role in shaping tax policy, including an expected 2025 tax bill. Finally, the House Education and Workforce Committee has jurisdiction over education, workforce development, and workforce policy.

Here is where things stand with key House committees:

  • Energy & Commerce: Brett Guthrie (R-KY) was elected as chair while Rep. Frank Pallone (D-NJ) will serve as ranking minority member for Democrats.
  • Ways & Means: Rep. Jason Smith (R-MO) will hold the top spot at Ways & Means (W&M). Rep. Richard Neal (D-MA) will remain in his role as the committee’s top Democrat.
  • Education and Workforce Committee: Rep.  Tim Walberg (R-MI) will be the new Republican chair.

We look forward to leveraging the power of our network to strengthen relationships with these key members of Congress.

Sarah Dobson is Senior Director of Advocacy and Public Policy at Lutheran Services in America.

Housing Issues to See New Leadership in Congress, Administration

December 19, 2024

Across the Lutheran Services in America network, we are committed to addressing housing insecurity as an economic and health crisis, advocating for affordable housing not only as shelter but also to ensure that members of the community are healthy and connected to the supportive services—food, social connection, transportation and mental health care—that are necessary to thrive. Therefore, we are carefully tracking announcements on who will be moving into leadership roles in Congress and the new administration on these issues.

President-elect Donald Trump announced he will nominate former Texas state Rep. Scott Turner to lead the U.S. Department of Housing and Urban Development (HUD). Turner was twice elected to the Texas House of Representatives, serving from 2013 to 2017. In 2019, during his first term, Trump appointed Turner to lead a council tasked with turning around distressed communities, including directing private investment money toward “Opportunity Zones.” Turner now chairs the Center for Education Opportunity at the America First Policy Institute, a think tank set up by former staffers from Trump’s first presidency.

In Congress, Sen. Tim Scott (R-SC) has signaled his desire to chair the Senate Banking, Housing and Urban Affairs Committee, which holds jurisdiction over key housing policy. Former ranking member Sen. Sherrod Brown (D-OH) lost his bid for re-election, and as such, Sen. Elizabeth Warren (D-MA) is expected to take his place as top Democrat on the panel. Sen. Brown was the champion of S. 3910, the “Yes in God’s Backyard” (YIGBY) Act. The legislation seeks to break down regulatory and zoning barriers for churches and other faith-based institutions to use existing land and property to develop housing. Having endorsed the bill, we will be working to help identify a new lead senator to move this effort forward.

In the House of Representatives, the Financial Services Committee has jurisdiction on housing-related issues. The new ranking chair is Rep. French Hill (R-AR), while Rep. Maxine Waters (D-CA) will retain her role as the ranking members for Democrats.

Our staff is working across our network to strengthen and develop relationships with these key stakeholders to advance our key policy priorities:

  • Grow our collective capacity to increase the availability of affordable housing within communities.
  • Expand the integration and reach of effective models of supportive services in housing for older adults and people with disabilities.
  • Advocate policies and funding to advance affordable housing, reimbursement for social determinants of health services and ultimately, improve health equity.

If you are interested in engaging in advocacy with the network on housing and services issues, please contact Sarah Dobson.

Sarah Dobson is Senior Director of Advocacy and Public Policy at Lutheran Services in America.

3 Ways Faith-Based Organizations Can Align Their Finances with Their Values

December 19, 2024

While it’s always been important for faith-based organizations to express their mission and values, the current realities faced by non-profits underscore how crucial values alignment can be for organizational success. From rising costs to increased consolidation, post-COVID impacts, shifts in giving trends and rapidly changing demographics, non-profits are facing many uncertainties today. For faith-based organizations, leaning into core values and historical connections can be a key differentiator.

One of many ways faith-based non-profits can express their values is by aligning their financial decision-making with the core principles that drive their mission. Whether it’s prioritizing socially responsible investments or ensuring that organizational finances are well suited to support mission work, there’s a clear need for faith-based organizations to integrate their values when making financial decisions. Here’s three ways your organization can take steps to align your finances with your values:

  1. Consider Your Policies and Procedures

Strong governance is an important trait for all non-profits. Your organization’s governing documents and processes can be a starting point for ensuring your values are reflected in financial decision-making. For example, you may have an Investment Policy Statement (IPS) that defines how your endowment and reserve assets are invested. Many faith-based organizations may reflect their values in their IPS by defining a set of ethical exclusions or prioritizing sustainable investments.

  1. Evaluate Faith-Based Financial Partners

Non-profits often rely on a network of financial service partners to deliver employee benefits, save for the future and grow their investment assets. There are opportunities to connect with financial partners that align with your values. For example, Wespath is affiliated with The United Methodist Church and exclusively serves faith-based and values-driven non-profits. Providers like Wespath understand the motivations, challenges and opportunities of faith-based organizations because we are one too!

  1. Integrate Values-Aligned Strategies

With the groundwork of a strong IPS and a values-aligned investment partner, faith-based organizations may also consider more specific financial solutions that reflect their values. For instance, Wespath recently launched two new investment funds designed for institutional investors with values alignment in mind. Our new “Social Values Choice” funds integrate additional investment screens/exclusions to avoid certain types of investments:

The funds provide exposure to global stocks and bonds for organizations seeking that type of values alignment. Our faith connections certainly offer diverse perspectives on complex issues like climate change and human rights, so it may be compelling for some to consider more-specific solutions like this.

You can find more information about Wespath and the Social Values Choice funds in this recent article. We always look forward to meeting new non-profit leaders and helping organizations with their investment needs!

Karen Manczko is Director, Institutional Relationships at Wespath Institutional Investments.

Urging Congress to Address CNA Training Penalty

November 20, 2024

Lutheran Services in America joined other faith-based organizations in sending a letter to House Speaker Mike Johnson (R-LA) and Democratic Leader Hakeem Jeffries (D-NY) to urge them to include the Ensuring Seniors’ Access to Quality Care Act (H.R. 3227) in any must-pass legislative package considered during the remainder of this Congress.

The bill addresses a longstanding problematic provision in federal law that penalizes skilled nursing facilities (SNFs) who are fined above a certain monetary threshold during their CMS survey by rescinding their authority to train certified nursing assistants (CNAs) for two years. This penalty stays in place for the entire two years, even if the SNF addresses the deficiency that resulted in the fine and regardless of whether the fine was related to the quality of resident care. H.R. 3227 would allow SNFs that have resolved their deficiencies to restart their CNA training programs before the end of the two-year period.

Lutheran Services in America has long supported making this change in the law. It is even more important now in light of the federal nursing home minimum staffing rule, which will require facilities to significantly increase their CNA staffing. The authority to train new workers is critical to facilities’ ability to potentially meet the new requirements.

Sarah Dobson is Senior Director of Advocacy and Public Policy at Lutheran Services in America.

Supporting
Our Neighbors,

TOGETHER.

Our shared Lutheran tradition of service to our neighbor is more vital than ever.

Join us as we work to ensure our network continues delivering essential services to all in need.