November 8, 2024

What's Happening This Week...

• What We're Tracking in DC
• Federal Government Engagement Opportunities
• Happening in the States
• News, Resources, and Events

What We're Tracking in DC

(Still) Looking to 2025

In case you missed it, former president Donald Trump has been re-elected and will serve as the nation’s 47th president. He is joined by a narrow Republican Senate majority, while the House has yet to be called as of Friday morning. Join our election debrief on November 14 at 2pm ET to hear how we’re making sense of the election and its potential impact on philanthropy.

Regardless of the ultimate House results, margins in both chambers of Congress will be narrow. If Republicans end up keeping their House majority, Congress may use budget reconciliation to pass a tax package. And while President-elect Trump has yet to announce specific administration priorities, here’s what he has shared about how he’s thinking about tax policy:

• Extending the Tax Cuts and Jobs Act. Many provisions from the flagship tax package of the first Trump Administration are set to expire at the end of 2025, setting the President and Congress up to negotiate a new tax package. President-elect Trump has pledged to extend many of the provisions of the TCJA. Read our updated analysis of how the TCJA impacts philanthropy — and what policymakers have said about the 2025 tax debate.
• Rolling back the Inflation Reduction Act (IRA). The IRA, which congressional Democrats championed during the early years of the Biden Administration, included tax breaks for clean energy. President-elect Trump has pledged to repeal the IRA.
• Reducing taxable income. President-elect Trump has promised to exempt certain types of income from taxes, including tips, overtime, and Social Security payments.
• Lifting the cap on the State and Local Tax (SALT) Deduction. The TCJA created a cap on the SALT deduction, which allows taxpayers to subtract a portion of their state and local property taxes from their federal taxable income. President-elect Trump has suggested eliminating this cap.
• Increasing tariffs. President-elect Trump has proposed high tariffs on foreign goods to incentivize buying American-made products.

Read more detailed analysis of the incoming administration’s priorities from the Associated Press, Politico, the Washington Post, NPR, and Holland & Knight.

Stay tuned for a more detailed analysis of the transition and a preview of the 119th Congress in Snapshot in the coming weeks. 

Federal Government Updates and Opportunities

• The White House Office of Management and Budget (OMB) is developing a federal framework to enhance public participation and community engagement. They’re seeking public feedback on two documents before November 29: a draft guidance that defines participation and engagement, outlines guiding principles, includes a sample framework for deciding when and how to involve the public, and offers steps to broaden engagement; and a draft outline for a toolkit to help agencies plan, implement, and measure effective public participation.
• The U.S. Department of Education is hosting the CTE Momentum, Power Your Future Challenge, a nationwide competition inviting high schoolers to envision careers in clean energy. Teams are encouraged to submit innovative plans to promote clean energy use in their schools and communities. Through this challenge, students can dive into clean energy topics, connect with career and technical education (CTE) programs, and discover exciting career paths. Up to 10 winning teams will split a $50,000 prize. Apply by November 19.
• Reminder: the Environmental Protection Agency has announced $2 billion in grants to support disadvantaged communities’ efforts to reduce pollution, improve climate resilience, and strengthen local capacity to address environmental justice. Nonprofits are eligible to apply; the deadline is Thursday, November 21.
• Reminder: Round Two of the EPA's Recycling Education and Outreach Grant Program focuses on reducing food waste and promoting composting. Nonprofits are eligible to apply; the deadline is Friday, December 20.    

Happening in the States

Update on State Charity Enforcement

The National Association of State Charity Officials (NASCO) released its Annual Report on State Enforcement and Regulation summarizing enforcement cases and actions in the states. Fifty-two cases and enforcement actions were cited in 16 states concerning deceptive solicitations, governance, trusts and estates, and registration. Government officials conducted outreach activities on registration requirements, audit thresholds and financial review requirements, filings, governance, and government grants and contracts.

The State of Diversity, Equity, and Inclusion

Recent decisions by the U.S. Supreme Court have created a chilling effect on nonprofit operations, advocacy, and funding supporting the advancement of diversity, equity, and inclusion (DEI). More than one hundred court cases have been filed challenging DEI training, government programs, freedom of speech and religion, school and university admissions, and workforce discrimination as they pertain to overcoming injustice and unfair treatment.

State and Local Fiscal Recovery Funds

Charitable nonprofits have received less than 5% of spending under the State and Local Fiscal Recovery Fund, according to the most recent data released by the U.S. Treasury Department. Sadly, many organizations simply give up advocating for their fair share of the dollars when told by an uninformed government official that “the money has been spent.” Continue reading to learn how this is an incorrect statement in many cases.

Free Post-Election Webinar: Tuesday, November 12 at 4pm ET

Impact of the Elections on Charitable Nonprofits: Be part of a national, action-oriented conversation unpacking the federal election’s impact on charitable nonprofits, their missions, and our communities. This free webinar will focus on how the results of the elections will affect nonprofit priorities in the upcoming lame-duck session and how nonprofits can prepare for the 119th Congress. Don’t miss this chance to gain insights into what’s ahead.

News & Resources

• Trump's low-key Senate partner in tax battles, Politico
• Vital Statistics on Congress, Brookings Institution
• Philanthropic Support for Diverse Small Business Owners, Urban Institute
• Beyond the scandals: How crypto is quietly revolutionizing philanthropy, Salon
• Critical Nonprofit Policy Issues the Next President and Congress Will Face, Chronicle of Philanthropy 

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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