Public policy news and updates for the philanthropic sector

October 13, 2023

What's Happening This Week...

• Happening at the Council
• What We’re Tracking in DC
• Federal Government Opportunities and Updates
• Happening in the States
• News, Resources, and Events

What We're Tracking in DC

Speakerless House
After a last-minute vote on a continuing resolution to keep the government open for 45 days, the House voted to remove then-Speaker Kevin McCarthy (R-CA) from his position. House Republicans are now in the process of selecting their nominee for Speaker. As of Friday morning, no candidate has the majority needed to become Speaker.

Why does this matter? The Speaker of the House is one of the most important positions in the government. Not only is the Speaker next in line to the presidency after the vice president, but they also direct House floor proceedings, including deciding which bills can be voted on. Without a Speaker, the House cannot conduct certain legislative work—so many congressional proceedings are currently stalled.

Federal Grants Reform
Two updates on federal grants reform: First, the Office of Management and Budget released proposed regulations for comment. These regulations aim to streamline the federal grantmaking process, including by:

• Urging grant recipients to engage impacted communities
• Encouraging federal agencies to consult impacted communities when developing programs
• Eliminating some reporting and metrics requirements
• Increasing the single audit threshold

Read more analysis from our partners at the National Council of Nonprofits. Comments are due on December 4, 2023.

Second, on Thursday, Rep. Marie Gluesenkamp Perez (D-WA) and Rep. Virginia Foxx (R-NC) introduced the Streamlining Federal Grants Act. This legislation, which has already been introduced in the Senate, also aims to streamline and modernize the federal grants process. Among other provisions, it would:

• Require grantmaking agencies to designate a senior official to streamline grant administration
• Create a Grants Council aimed at simplifying notice of funding opportunities and improving data standards and collection
• Improve Grants.gov

Consider sharing information about both the proposed regulations and this legislation with your development staff or with nonprofit partners that receive federal funding. If this would positively impact you or your partners, please let us know by emailing govt@cof.org.

Federal Government Opportunities and Updates

• The Internal Revenue Service (IRS) Office of Tax Exempt and Government Entities released its Fiscal Year 2024 Program Letter, which details the IRS’s priorities for fiscal year 2024. Among other priorities, the IRS plans to address underreporting in a variety of segments including exempt organizations.
• The IRS also warned taxpayers of potential scams and improper practices around art donation and charitable deductions. The IRS highlighted its team of professional appraisers, whom taxpayers can ask questions about art valuation if issues arise.
• The Department of Agriculture (USDA), in partnership with the Tri-Faith Initiative, will host a Summit to Counter Antisemitism, Islamophobia, and Related Forms of Bias on November 8 and 9 in Omaha, Nebraska. RSVP to attend.
• The Department of Housing and Urban Development (HUD) announced over $30 million in funding to combat housing discrimination nationwide. Nonprofits working to develop and implement programming around this work are eligible to apply. Applications are due November 30. 

Happening in the States

American Rescue Plan Act Investments in Nonprofits
State and local governments have until December 31, 2024, to obligate their share of the $350 billion in State and Local Fiscal Recovery Funds enacted as part of the American Rescue Plan Act. Governments continue to evaluate and approve investments. Nonprofits can continue to use these examples to show why ARPA funds can and should be used to partner with governments and advance solutions in communities. 

Prioritizing Nonprofit Legislation in the States
Several bills have been introduced or are advancing in the states that can impact the work of charitable nonprofits in those states and can serve as examples for other states to consider. Legislation in Wisconsin, Michigan, and California can impact childcare, giving incentives, and government grants and contracts.

News & Resources

• Examining the Tax Rules at Risk in SCOTUS Moore v. US Case, Tax Policy Center
• Post-pandemic poverty is rising in America’s suburbs, Brookings Institution
• What Is Social Justice Philanthropy? A Donor Network Asks Hard Questions, Nonprofit Quarterly
• Evaluating the U.S. Department of Labor's Overtime Proposed Rule, National Council of Nonprofits 

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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