Spring is finally here, and the cherry blossoms are in full bloom in the nation’s capital. The president’s budget was released this month and the debt ceiling negotiations are ongoing. If you have been distracted by March Madness and keeping up with your brackets, or have been watching the World Baseball Classic, fear not. Here is a download of issues in Washington, DC affecting nonprofits:
Legislative Outlook
Uncertainty over how lawmakers will address the federal debt limit, which was reached on January 19, continues to be a primary focus in Washington. Lawmakers likely have until about mid-year to address the issue. Speaker McCarthy (R-CA) and President Biden met initially in February about the debt ceiling and agreed to keep talking, but no further meetings have been scheduled. President Biden has maintained the position that Republicans need to first show their budget plans. House Republicans need more time for drafting a Fiscal Year 2024 budget resolution partly because President Biden’s budget was released on March 9, a month later than usual.
On February 28, the House Ways and Means Committee approved 24-17 along party lines an Oversight Plan for the 118th Congress. The plan calls for oversight of several issues, including tax-exempt organizations — more specifically, the oversight of federal tax laws, regulations, and filing requirements that affect tax-exempt organizations. It also asks for review of the IRS tax-exempt application process and agency oversight of new exempt organizations.
New Rules for “Earmarks”
Also on February 28, the House Appropriations Committee released the new rules for earmarks. Earmark spending will be capped at 0.5 percent of total discretionary spending in the House’s fiscal 2024 bills, and members will have to submit a written statement describing the “federal nexus” for their earmark requests. House Republican appropriators have banned earmarks from the Labor-HHS-Education, Financial Services and Defense bills and put fresh restrictions on “community project funding.” Republicans have also banned memorials, museums and commemoratives, and projects named for an individual or entity from being eligible for earmarks. It is concerning and disappointing that any one type of nonprofit would be singled out for exclusion from federal funding. In the Senate, spending leaders in both parties have already vowed to keep earmarks going this year and have not forecast any major changes to the system.
Charitable Giving Bill Introduced in the Senate
On March 1, Sens. Lankford (R-OK) and Coons (D-DE) introduced the Charitable Act (S.566). The bill would allow nonitemizers that donate to the charities of their choice to deduct from their taxes up to one-third of the standard deduction (around $4,500 for an individual filer and around $9,000 for married joint filers) for years 2023 and 2024. This legislation would expand and extend the expired $300 charitable deduction established by Congress in 2020.
Advocates from all over the country joined the Senators on a press conference to celebrate the introduction of the Charitable Act. Angela F. Williams President and CEO of United Way Worldwide, Anthony Walters CEO of the YMCA of South Hampton Roads, and Ralph Bukiewicz National Chief Secretary of The Salvation Army spoke in support of the legislation.
Take a moment to tell your Senator to cosponsor the Charitable Act.
The 2024 President’s Budget was Released
On March 9, President Biden released his proposed budget for 2024. In his budget, the President calls for $3 trillion in deficit reduction, including through tax increases on corporations and wealthy individuals. The President’s budget is considered a wish list of preferred policies. Learn more about the provisions impacting nonprofit organizations in the President’s budget here.
Foundations on the Hill Recap
More than 260 philanthropic leaders and advocates came together in Washington, DC for the 2023 Foundations on the Hill (FOTH) hosted by The United Philanthropy Forum, in partnership with Independent Sector and the Council on Foundations. This year’s Foundations on the Hill featured three consecutive days of programming, networking, and Capitol Hill visits aimed at promoting a strong sector and advocating for vibrant, equitable communities.
Attendees were able to hear from over 20 speakers and presenters during a full day of advocacy and public policy-focused programming. They also advocated on behalf of the sector and the communities they serve, with over 200 meetings on Capitol Hill and with government agencies. The event ended on a high note as FOTH participants were able to attend a press conference on Capitol Hill, led by Senators Lankford (R-OK) and Coons (D-DE), celebrating the introduction of the Charitable Act (S.566).
