What to Expect in 2024
Congress
Congress still has work to finish from last year: funding the government. Congress recessed for the holidays after passing a temporary funding measure that funds certain departments and agencies through January 19 and the remainder through February 2. They now face the monumental task of funding the government in a short time frame or risking a government shutdown. Expect the battles to keep the government open to continue through at least the first part of 2024.
While appropriators sort out government funding, there are reports that Ways and Means Committee Chair Jason Smith (R-MO) and Senate Finance Committee Chair Ron Wyden (D-OR) have negotiated a tax package. Reporting suggests it will likely include the Child Tax Credit and several business tax incentives, but specifics have not yet been revealed. Given the current policymaking environment, the package is far from a done deal. This is an opportunity to lift up critical sector priorities, including the Charitable Act (S.566/H.R.3435). Take action: tell your members of Congress to support this important bill, which would create a temporary charitable deduction for taxpayers who do not itemize.
Finally, it's an election year: expect even more politics and messaging bills from Congress in 2024. Democrats in the Senate and Republicans in the House hold their respective majorities by slim margins. The entire House is up for re-election, while a third of the Senate will be on the ballot in November. This year’s list of resignations and retirements is lengthy, meaning the 119th Congress—set to be sworn in next January—will feature dozens of new faces and likely alter existing dynamics.
Regulatory Environment
Treasury and the IRS released proposed regulations on donor advised funds last year. The comment period on these proposed regulations has been extended to February 15. We expect final regulations to come after a review period, though the timing is not certain. The Council plans to submit comments; email govt@cof.org to let us know how these changes would impact your organization.
Treasury and the IRS will also invite the public to submit recommendations for items to be included in their 2024-2025 Priority Guidance Plan this spring. This Plan is a set of tax-related issues that Treasury and the IRS intend to prioritize for guidance in the upcoming year. As our team starts preparing our comments, let us know: what federal tax issues would you like to see clarified?
We also expect final guidance on the federal grants process from the Office of Management and Budget. The Council submitted comments on the proposed revisions toward the end of last year; thank you to all who reached out to tell us the importance of these updates.
Finally, last fall, the Department of Justice announced plans to issue proposed clarifications to the Foreign Agents Registration Act. We expect the proposed rules this April.
Federal Agencies
As President Biden’s first term draws to a close, federal agencies will be working to implement remaining pieces of his agenda, including the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. These landmark packages, which include nearly $2 trillion in funding for clean energy, infrastructure improvements, and climate resiliency, represent a major priority for the Biden-Harris Administration. Nonprofits are eligible to receive some of this funding, and Notice of Funding Opportunities are posted to grants.gov regularly. We include some of these opportunities in Snapshot, but we encourage you to track relevant agencies as well.
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