What We're Tracking in DC
Summary of Proposed Uniform Guidance regulations
In the previous edition of Snapshot, we shared that the Office of Management and Budget (OMB) released proposed regulations to revise the Uniform Guidance for federal financial assistance. Changes in the proposed regulations include:
- Changing Uniform Guidance into federal regulation, removing federal agencies’ discretion on how the provisions are applied.
- Increasing restrictions on using federal funds for activities related to social or political issue advocacy, DEI programs, voter registration, and collaborations and programs with foreign countries of concern or foreign entities of concern.
- Expanding criteria for applicant risk review, including involving political appointees in pre-award review discussions.
Review our full summary of the proposed regulations and impact on philanthropy. We are preparing to submit comments to OMB and encourage you to do the same.
Discussions of Nonprofits During Congressional Hearings
Last week, Treasury Secretary Scott Bessent testified before the House Ways and Means and Senate Finance Committees on the Treasury Department’s FY 2027 Budget Request.
In both hearings, Secretary Bessent highlighted many of the provisions from last year’s reconciliation bill that impact individuals, families, and businesses; discussed the most recent tax filing season; and touched on the Administration’s trade policies. He received many questions regarding the recent Department of Justice settlement with President Trump, as well as the state of the American economy, affordability, and digital asset taxation. In the hearings, several lawmakers raised issues relevant to the philanthropic sector, including:
- Sen. James Lankford (R-OK) asked that Treasury review the Biden Administration’s proposed regulations on donor-advised funds.
- Rep. David. Schweikert (R-AZ) asked that Treasury work with Congress on reforming Form 990 to ensure nonprofit organizations are acting in accordance with their missions.
- Rep. Blake Moore (R-UT) discussed how Trump Accounts will benefit Americans, commending philanthropic investments that have already been made and noting that foundations would like to make contributions.
This week, the House Judiciary Committee held a hearing titled, “The Southern Poverty Law Center: Manufacturing Hate, Part II.” The hearing was a continuation of the committee’s oversight of the Southern Poverty Law Center (SPLC) following their indictment by the DOJ. In the hearing, members questioned Interim President and CEO of the SPLC Bryan Fair on the organization’s actions. As in previous hearings, Republican committee members made statements regarding the SPLC misleading donors and straying from its original mission as a nonprofit.
House Judiciary Memo on Anti-Israel Nonprofits
Last month, the House Judiciary Committee released a memo titled, “The Biden-Harris Administration's Funding of Anti-Netanyahu Non-Governmental Organizations, Part II.” The memo, a follow up to a July 2025 memo, makes accusations that the State Department, U.S. Agency for International Development, and other federal agencies during the Biden Administration provided funding to American nonprofits that funded Israeli organizations with alleged ties to terrorist groups.
The memo states that these nonprofits regranted U.S. taxpayer dollars to Israeli groups that led anti-government protests and media campaigns in Israel, some of which the memo holds may violate section 501(c)(3). The Committee did not announce any hearings or make direct suggestions to Treasury related to this memo but did state that it will continue to use its oversight authority to investigate the misuse of taxpayer funds by the Biden Administration and of nonprofits they presume to be violating section 501(c)(3).
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