President Biden Releases FY2023 Budget Request
This week, the White House released the Biden Administration’s FY2023 budget request, as well as the Department of the Treasury’s “Greenbook,” which details the Administration’s proposals for raising revenue for the coming year. The Greenbook includes a proposal to prohibit private foundations from counting distributions to donor-advised funds (DAFs) as part of their annual payout unless they are granted out by the end of the following year. Private foundations would also be required to maintain records proving the DAF made the qualifying distributions during the specified time frame. This proposal appears similar to a Treasury Department proposal from 2017, as well as the private foundation provision included in the Accelerating Charitable Efforts (ACE) Act (H.R.6595/S.1981).
The Council agrees with the president that DAFs capitalized by private foundations should be distributed in a timely way; however, we suggest a longer timeframe. The recommendations we released last month include a five-year timeframe for such distributions. This ensures that charitable dollars get into communities quickly and preserves flexibility for private foundations to best advance their missions.
The Greenbook also proposes increasing the top individual income tax rate to 39.6 percent, imposing a minimum 20 percent tax on high-earning taxpayers, and closing conservation easement loopholes.
The budget request and Greenbook are not federal law; they serve as messaging documents regarding the president’s priorities for the coming year, and typically the budget passed by Congress deviates significantly from the initial request.
Department of Commerce Announces New Strategic Plan
The Department of Commerce released its new strategic plan for 2022-2026. The plan will serve as the overarching blueprint for Commerce’s 225 programs and eleven bureaus and will guide the allocation of resources to achieve the desired long-term economic and social outcomes. The Department will concentrate its efforts on five strategic areas:
- Drive US Innovation and Global Competitiveness
- Foster Inclusive Capitalism and Equitable Economic Growth
- Address the Climate Crisis Through Mitigation, Adaptation, and Resilience Efforts
- Expand Opportunity and Discovery Through Data
- Provide 21st Century Service with 21st Century Capabilities
Philanthropic funders may find opportunities to leverage their work on inclusive and equitable economic development and climate resilience in the outlined strategic areas #2 and #3. Funders interested in connecting with the Economic Development Administration or the National Oceanographic and Aeronautics Administration can be introduced through the Council’s Federal Partnerships program.
Pilot Program Expands Capital Access for Underserved Entrepreneurs
The Small Business Administration announced on March 30 that it will extend the availability of the Community Advantage (CA) loan program until September 30, 2024. The pilot program, launched during the Obama Administration, was set to end on September 30, 2022. As one of the key tools for Community Development Financial Institutions (CDFIs), Community Development Companies (CDCs), microlenders, and other critical mission-based lending partners, the CA program prioritizes equitable access to capital for low-income borrowers and those from underserved communities.
Among the changes, the program extension will:
- Lift the four-year lender moratorium, opening a critical capital program to more mission-based lenders across the country.
- Increase the maximum loan size to $350,000 from the current level of $250,000 enabling greater loan access in the SBA’s 7(a) government-guaranteed loan program.
- Remove the restrictions that can keep individuals with criminal backgrounds from accessing the Community Advantage program.
SBA’s Community Navigators provide valuable assistance in helping entrepreneurs navigate SBA resources.
The Census Bureau's COVID-19 Data Hub: Newest Version Now Available
Version 2.6 of the Census Bureau's COVID-19 Data Hub is now available. The COVID-19 Hub features data on more than 30 demographic, socioeconomic, and housing variables, businesses employment, and data on self-employed people from various sources, such as the American Community Survey (ACS), the County Business Patterns (CBP) survey, and the Nonemployer Statistics (NES) program. The Hub is designed to help guide the nation as it recovers from the COVID-19 pandemic by providing economic and demographic data. Users can browse state and county stats in interactive dashboards and maps to inform the planning of COVID recovery services for vulnerable populations and communities.
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