What We're Tracking in DC
Treasury 990 Transparency Initiative
Yesterday, the Department of the Treasury announced plans to revise Form 990 to “improve transparency, strengthen tax administration, and provide clearer reporting on certain activities of tax-exempt organizations.” These activities include government grants and contracts, as well as fiscal sponsorships.
Treasury Secretary Scott Bessent said the purpose of this revision is to weed out bad actors using nonprofits to hide fraud, abuse, and extremist activity. Treasury and the IRS plan to issue proposed regulations with an opportunity for public comment. We’re monitoring all Treasury’s regulatory activity and will share an update in Snapshot when the rulemaking process begins.
Budget Reconciliation Outlook
On April 21, Senate Budget Committee Chairman Lindsey Graham (R-SC) released a budget resolution that unlocks the process to fund U.S. Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) through budget reconciliation, a fast-track procedure that only requires a simple majority in the Senate to pass legislation.
Funding for these agencies, as well as the rest of the Department of Homeland Security (DHS), has stalled under the appropriations process. The budget resolution instructs relevant committees to provide $70 billion for ICE and CBP through the end of FY2029. At this time, the resolution does not call for tax changes. Earlier this month, President Trump asked Congress to fully fund DHS by June 1. The Senate passed the budget resolution early Thursday morning. It now moves to the House for consideration.
FY2027 Financial Services and General Government Appropriations Summary
The appropriations process is well underway in the House, with the House Appropriations Committee holding markups and acting on several of the 12 appropriations bills. Last week, the committee released the FY2027 Financial Services and General Government Appropriations bill. This bill would appropriate $12 billion for the Department of Treasury, including $10.2 billion for the IRS, representing an 8.3% and 39.4% decrease in funding below their FY2026 enacted funding levels, respectively. There are several other provisions we are monitoring:
- It continues to prohibit Treasury and the IRS from issuing regulations concerning section 501(c)(4) organizations.
- It continues to prohibit Treasury and the IRS from targeting U.S. citizens for exercising their First Amendment rights.
- It continues to prohibit the IRS from targeting groups for regulatory scrutiny based on their ideological beliefs.
- It prohibits Treasury and the IRS from taking discriminatory action against individuals speaking or acting in accordance with a sincerely held belief that marriage is between a man and a woman. Such discriminatory actions could include disallowing a charitable contribution made by such a person.
The bill was approved by the full House Appropriations Committee on April 22.
Executive Order on Elections
In the April 10 edition of Snapshot, we linked to a 2025 election-related executive order and summarized provisions from that order instead of the recently issued 2026 executive order on citizenship verification for elections. Here’s an updated summary of the most recent election-related executive order:
On March 31, President Trump issued an executive order (EO) titled, “Ensuring Citizenship Verification and Integrity in Federal Elections,” that directs DHS, in coordination with the Social Security Administration, to create and share a list of confirmed U.S. citizens with states ahead of elections; directs the Attorney General to prioritize investigation and prosecution of election-related violations; and requires the U.S. Postal Service to begin a rulemaking process on standards for mail-in and absentee ballots. The order also states that federal agencies should take steps to deter and address noncompliance, including withholding federal funds from noncompliant states and localities.
This EO builds on President Trump’s previous election EO, “Preserving and Protecting the Integrity of American Elections.”
Additional Updates
Upcoming Events
