What We're Tracking in DC
Federal Government Shutdown
The Senate did not pass a Continuing Resolution (CR) extending government funding beyond September 30, resulting in a government shutdown. The Senate has voted down two separate CRs multiple times this week. Congressional Democrats stated that they want to see the CR include an extension of tax credits for Americans enrolled in healthcare plans under the Affordable Care Act. Meanwhile, Congressional Republicans prefer a version of the CR that extends spending at current levels until November without additional provisions.
During the shutdown, each department and its agencies will operate in accordance with its contingency plan. Learn more about the government shutdown, and view the Department of the Treasury contingency plan. The contingency plans for additional agencies can be found on their respective websites.
Executive Action on Political Violence
On September 26, President Trump signed a presidential memorandum: “Countering Domestic Terrorism and Organized Political Violence.” The memo calls for a new law enforcement strategy to address political violence and domestic terrorism. Several provisions within the memo mention the charitable and nonprofit sector, including:
- Institutional and individual funders, and officers and employees of organizations, that are responsible for, sponsor, or otherwise aid and abet the principal actors engaging in this criminal conduct.
- Non-governmental organizations and U.S. citizens residing abroad or with close ties to foreign governments, agents, citizens, foundations, or influence networks engaged in violations of the Foreign Agents Registration Act or money laundering, particularly by supporting entities that engage in activities that support or encourage domestic terrorism.
Additionally, the memo directs the Commissioner of the IRS to ensure that no tax-exempt entities are directly or indirectly financing political violence or political terrorism and to ensure the IRS refers these organizations to the Department of Justice for investigation and possible prosecution. Council members can read our detailed summary of the memo.
Priority Guidance Released
On September 30, the IRS released its Priority Guidance Plan laying out the agency’s priorities through June 30, 2026. Among other tax provisions, the plan details that the agency will prioritize:
- Implementing the excise tax on excess compensation for nonprofit executives
- Implementing the excise tax on the investment income of certain colleges and universities
- Finalizing the 2023 proposed regulations regarding donor advised funds
- Regulations regarding expenditure responsibility requirements
- Guidance on reporting charitable contributions of trusts
- Proposing new guidance on the Johnson Amendment.
We closely track regulations that impact the nonprofit sector and will share updates in Snapshot throughout the next year.
Happening in the States
News & Resources
Upcoming Events
