As December settles in, much of the country begins to slow: Schools close for winter break, homes fill with holiday traditions, and many of us take time to reflect on the year behind us. For the charitable sector, December is both a moment to pause and a time to channel holiday spirits toward serving our neighbors. On Capitol Hill, however, this season often brings a final burst of legislative activity and a critical window to advance priorities that support nonprofits, philanthropy, and the communities we serve.
Here’s a snapshot of what’s been happening on Capitol Hill this month and what it means for the charitable sector.
Affordable Care Act Subsidies and Year-End Uncertainty
When the recent government shutdown ended, congressional leaders indicated that a vote on extending Affordable Care Act (ACA) premium subsidies would be part of the broader agreement. That commitment has since faced setbacks. Partisan proposals have failed in the U.S. Senate, and Speaker Mike Johnson (R-LA) has stated that the House would not schedule a vote on the subsidies before the end of the year — creating uncertainty for Americans during the critical open enrollment period.
Despite those headwinds, a new procedural path has emerged. On December 17, 2025, House Democrats advanced a discharge petition — a mechanism used to bypass leadership and the committee process — after securing four Republican signatures, the threshold needed to bring legislation extending the ACA subsidies to the House floor. While the timing of a vote remains flexible and could extend into early 2026, the petition ensures the issue remains live.
Even if the legislation advances in the House, it would still face a steep climb in the Senate, where 60 votes are required for passage. In the meantime, many individuals enrolled in ACA plans are preparing for significant premium increases during the current open enrollment period, which ends January 31, 2026. Compounding the uncertainty, the continuing resolution that reopened the government only funds federal operations through January 31, 2026, raising the prospect of another government shutdown in the new year. We are closely monitoring developments as negotiations continue.
Leveling the Playing Field for 403(b) Retirement Plans
On December 9, 2025, Independent Sector led a letter to Senate Banking Committee Chair Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA), as well as House Financial Services Committee Chair French Hill (R-AR) and Ranking Member Maxine Waters (D-CA), urging Congress to advance legislation that would modernize 403(b) retirement plans for nonprofit employees. The letter supports allowing 403(b) plans subject to ERISA to include Collective Investment Trusts (CITs) — an option already available to 401(k) plans — which could lower fees and improve retirement outcomes for nearly 15 million nonprofit workers. By expanding access to these cost-effective, ERISA-protected investment options, the legislation would help nonprofit employers better attract and retain talent while strengthening long-term retirement security across the charitable sector. Independent Sector will continue to monitor this legislation as it works its way through the legislative process.
Ongoing Challenges to the Johnson Amendment
Legal efforts to weaken the Johnson Amendment continue, raising concern across the charitable sector. The challenge, brought in National Religious Broadcasters v. IRS, has progressed with a federal court hearing oral arguments and accepting testimony, moving the case further along in the judicial process. Separately, political pressure has intensified following a recent hearing convened in Dallas by the Religious Liberty Commission established by the Trump-Vance Administration, where participants raised direct challenges to the Johnson Amendment as part of broader discussions on religious liberty.
In response, Independent Sector and our partner organizations submitted joint testimony emphasizing the importance of preserving the Johnson Amendment’s long-standing safeguards. The testimony underscores how these protections help ensure that 501(c)(3) organizations, including charitable nonprofits, houses of worship, and foundations, are not drawn into partisan political activity. It further warns that weakening these guardrails would risk eroding public trust and undermining the credibility and effectiveness of the charitable sector.
Registration Open: 23rd Annual Foundations on the Hill 2026
Registration is open for the 23rd annual Foundations on the Hill 2026, hosted by United Philanthropy Forum in partnership with Independent Sector and Council on Foundations. Set for March 16-9, 2026 in Washington, D.C., this four-day event is an opportunity for philanthropic leaders, policy advocates, and sector partners to come together, strengthen our collective voice, and advance community well-being through coordinated advocacy.
Don’t miss your chance to be part of this landmark moment — with over 400 thought leaders, more than 250 strategic Capitol Hill and agency meetings, and a full agenda designed to build long-term sector readiness. Whether you’re representing a foundation, infrastructure organization, or nonprofit partner, registering early ensures you’ll secure a spot and help shape how the sector shows up in Washington together.
Travis Swanson is the Government Relations Manager at Independent Sector
