Council Connection: Updates for Council Members

Public policy news and updates for the philanthropic sector

Happening at the Council

Protecting the Independence of Our Sector

On behalf of the charitable sector, we oppose the Trump administration’s stated intention to target Harvard University on ideological grounds. This moment is about more than one institution. It is about how thought, knowledge, and expression are essential to our freedom and to the independence of our sector, and must be protected. Read our joint statement.

What We're Tracking in DC

Budget Reconciliation Update

Before breaking for the April Work Period, Congress passed an amended budget resolution that allows the House and Senate to move forward with reconciliation legislation. Passage of the budget resolution paves the way for Congress to take the next steps on a tax bill that extends and builds on the Tax Cuts and Jobs Act (TCJA), cuts spending, and delivers other Trump Administration priorities. Republicans in the House and Senate disagreed on exact levels of spending cuts, so they crafted this resolution to move the process along and defer those decisions until later.

House instructions: The budget resolution calls on the Ways and Means Committee to report a tax bill that can increase the deficit (primarily through extending tax cuts) by, at most, $4.5 trillion. The resolution also establishes a floor for other committees to cut spending by $1.5 trillion but sets a target of $2 trillion in cuts. Ways and Means could see its instruction reduced if that target isn’t met or increased if spending cuts exceed it.

Senate instructions: The Senate Finance Committee is instructed to produce a tax bill that increases the deficit by no more than $1.5 trillion, allowing for additional tax cuts on top of the TCJA. The resolution uses a current policy baseline to score the legislation, meaning extending the TCJA would be treated as not having a cost. Other committees must draft spending cuts legislation, but the Senate sets a $4 billion floor—well below the House’s instruction.  

The House and Senate are under pressure to finish drafting their respective versions, though details are being closely held by the Committee chairs. Although timing is fluid and ambitious, we expect Congress to move quickly and attempt action in May.  

Legislation Introduced

  • Charitable Rollover Facilitation and Enhancement Act (H.R.2891): Introduced by Rep. Adrian Smith (R-NE) and Rep. Jimmy Panetta (D-CA), along with a bipartisan group of cosponsors, this bill would allow seniors to make a qualified charitable distribution from their IRA to a donor-advised fund. In doing so, it would lift an unnecessary restriction and enable retirees to support their local community foundation as well as a wider variety of causes. The Council strongly supports this bill. Take action: tell your member of Congress to co-sponsor H.R.2891.
  • Safeguarding Charity Act (H.R.2896/S.1428): Introduced by Rep. Greg Steube (R-FL) and Sen. James Lankford (R-OK), this bill would clarify that tax-exempt status does not necessarily mean a 501(c) organization receives federal financial assistance.   

Additional Updates

  • The Department of Government Efficiency (DOGE) contacted nonprofit Vera Institute of Justice informing the organization of plans to assign a team to them and other nonprofits receiving funds from Congress. DOGE later withdrew the request upon learning that Vera’s federal grants had been canceled. The Council continues to monitor this situation.
  • Earlier this week, DOGE took control of the grants.gov system. Managed by the U.S. Department of Health and Human Services, grants.gov disseminates information about federal grants and provides a mechanism for applying for the grants. So far, there appear to be no changes to the appearance or functionality of the system.
  • On Tuesday, the Trump Administration told volunteers of the AmeriCorps National Civilian Community Corps that they would exit the program "due to programmatic circumstances beyond your control," according to the memo received by the volunteers. Following that notification came a memo on Wednesday evening informing the entire AmeriCorps team that they had been placed on administrative leave. 

Happening in the States

Tax Legislation in the States

Several tax bills that may affect charitable nonprofits are moving in the states.

  • Pending legislation in Nevada seeks to clarify religious, charitable, or educational purposes for exemption from sales tax.
  • A bill in North Carolina would establish a tax exemption registration process for nonprofits, provide penalties for abuse of an exemption certificate, and require a sales tax exemption number.
  • In Oregon, a bill would authorize the Department of Revenue to electronically collect voter signatures in support of listing a nonprofit on the charitable checkoff list on state income tax forms.  

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