Public policy news and updates for the philanthropic sector

May 2, 2025

What's Happening This Week...

• What We're Tracking
• Additional Updates
• Happening in the States
• News, Resources, and Events

What We're Tracking in DC

Budget Reconciliation Update

Back from the April recess, House Republicans are moving quickly to pass a budget reconciliation package that includes many of the conference’s priorities. This week, several House Committees began markups of their respective pieces of the package.

Still to come is the Ways and Means Committee, which is tasked with writing legislation to extend and expand the Tax Cuts and Jobs Act of 2017. Chairman Jason Smith (R-MO) has not yet announced when the Committee will host a markup. House leadership is still hoping for the House to consider the full reconciliation package on the floor by the Memorial Day recess, but it is unclear if that can happen. Still, given the ambitious timeline, the process is likely to move quickly once it starts, with text possibly released only hours before a markup and subsequent Committee vote.

Once our team knows more, we will be sure to share it out. And to keep up with the budget reconciliation process, Council members can check out this tracker.

House Oversight Agenda Published

Earlier this week, the House Committee on Oversight and Government Reform published each House Committee’s oversight plans for the 119th Congress. In addition to many provisions, the House plans to conduct oversight on several issues related to foundations and other nonprofits:

• The Ways and Means Committee will conduct oversight on the IRS’s efforts to monitor tax-exempt organizations.
• The Natural Resources Committee will investigate nonprofits that have contributed to increased illegal immigration as well as foreign influence over nonprofits working on environmental policy.
• The Foreign Affairs Committee will conduct oversight on NGOs operating in regions such as Russia, Ukraine, the Middle East, Africa, and India to ensure compliance with sanctions and other issues. The Committee will also examine nonprofits that receive U.S. government funding to conduct humanitarian aid abroad.
• The House Administration Committee will examine the role nonprofits play in federal elections.  

Additional Updates

 “Skinny” Budget Released

The Trump Administration released a budget request for fiscal year (FY) 2026. This so-called “skinny budget” provides a high-level overview of the Administration’s appropriations and policy priorities. Congress will consider the Administration’s request as they craft appropriations bills for FY2026, which begins on October 1, 2026. The Trump Administration is proposing a significant reduction to non-defense discretionary programs, including cutting funding to the IRS by more than $2 billion. Read more about what is in the proposed budget.

Recent Executive Order Roundup

• Ending Taxpayer Subsidization of Biased Media: Directs the Corporation for Public Broadcasting to cease federal funding for NPR and PBS, accusing them of biased and partisan news coverage; and directs the Secretary of Health and Human Services to determine whether PBS and NPR are complying with employee nondiscrimination laws.
• Establishment of the Religious Liberty Commission: Establishes the Commission and directs it to produce a report on "the foundations of religious liberty in America" and examine the First Amendment rights of faith-based institutions and their leaders when it comes to freedom of expression in the public square or public spaces on topics related to moral or political issues.
  • As you know, the Council strongly supports maintaining the Johnson Amendment and will oppose efforts to weaken or repeal it.
• White House Initiative to Promote Excellence and Innovation at Historically Black Colleges and Universities (HBCUs): Launches the Initiative in the Executive Office of the President and establishes the President's Board of Advisors on HBCUs. Housed in the U.S. Department of Education, the Board will advise the President and include representatives of a variety of sectors, including philanthropy.  

Happening in the States

Pending Legislation Affecting Charitable Nonprofits

Lawmakers are considering or advancing several bills affecting nonprofit funding and operations.

• Regulations: Lawmakers in Pennsylvania are considering a bill to directly benefit charitable causes in the community of a person who passes away. The bill would make any estate from a decedent with no heirs to pass to an Endowed Community Fund in the county of residence of the person after passing. The local community foundation would be authorized to hold and provide grants and benefits to charitable causes in that community.
• Excise tax: Pending legislation in Minnesota would levy an excise tax up to 25% on the endowments of larger educational institutions. The tax revenues would be paid into a new Higher Education Assets Growth Account and used to provide financial assistance to students from low- and middle-income families, under the Minnesota State Grant program.
• Budget and Spending: A bill in Montana to increase access to low-cost capital for nonprofit facilities has been signed by the Governor.  

News & Resources

• The 100 Days That Shook Nonprofits, Chronicle of Philanthropy
• Giving Pledge Signers On Why The 15-Year-Old Group Still Matters, Forbes
• Is federal spending subject to meaningful oversight?, Brookings Institution
• Research to Inform 2025 Reconciliation: Taxes, Safety Net, and Beyond, Urban Institute
• DOGE Cuts by City, State, and Congressional District, Center for American Progress

Keep in Touch!

Please feel free to reach out to any of us on the Government Relations Team with comments or concerns, or to share an issue, article, event, or op-ed you would like to see covered in a future Washington Snapshot.

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