Federal Budget

The Council provides an analysis of the annual president's budget request and congressional appropriations measures focusing on proposals that may affect foundations and the broad nonprofit sector.

Historically, budget requests put forward by the Administration serve as a messaging document for laying out a president’s priorities for the upcoming fiscal year. After the budget request is released, Congress will hold hearings to hear from the Administration as well as other stakeholders to better understand the impact of the proposals and consider additional funding requests. The federal fiscal year is from October 1 to September 30.

FY2023 Administration Budget Request

On March 28, 2022, the Biden Administration released the President's FY2023 Budget Request to Congress. The request and the accompanying "Greenbook"—the Treasury Department's list of FY2023 budget proposals—include an item that would directly impact philanthropy. The Administration proposes a change to private foundation payout rules: any distribution made by a private foundation to a donor-advised fund (DAF) would have to be granted out by the end of the following taxable year in order to count as part of a private foundation's payout. In addition, private foundations must maintain records or other evidence showing the DAF has made the qualifying distribution within the required timeframe. This echoes a proposal made by Treasury in 2017 and as well as a provision included in the Accelerating Charitable Efforts (ACE) Act.

FY2022 Federal Budget

On March 10, 2022, Congress passed its $1.5 trillion fiscal year 2022 government funding omnibus (H.R. 2471). The omnibus includes $730 billion in nondefense spending, a 6.7 percent increase over fiscal year 2021 (FY2021), as well as $782 in defense spending, a 5.6 percent increase over FY2021. Along with funding government agencies through the fiscal year, the omnibus includes $13.6 billion in emergency supplemental funding to support the Ukrainian people and defend democracy in the aftermath of the Russian invasion. Read the House Appropriations Committee’s factsheet on Ukraine support funding.

The package provides the Department of Treasury with $14.3 billion in discretionary funding, an $811 million increase over FY2021. In addition to election security and community economic development, this increase in funding aims to rebuild the government’s financial oversight capabilities through the Internal Revenue Service (IRS). The bill includes $12.6 billion for the IRS, an increase of $675 million above FY2021 and the largest increase to IRS funding since 2001.

In addition to funding for financial services, the omnibus includes:

$25.125 billion for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, an increase of 6 percent over FY2021. This includes $4 billion for rural development and infrastructure programs.
$75.8 billion for Commerce, Justice, Science, and Related Agencies. This includes $9.9 billion for the Department of Commerce and $35.2 billion for the Department of Justice.
$728.5 billion for discretionary defense spending.
$54.97 billion for Energy and Water Development and Related Agencies. This includes $44.9 billion for the Department of Energy.
$81.1 billion for Homeland Security, including $23.9 billion for the Federal Emergency Management Agency (FEMA).
$38 billion for Interior, Environment, and Related Agencies. This includes $14.1 billion for the Department of the Interior and $9.56 billion for the Environmental Protection Agency.
$213.6 billion for Labor Health and Human Services, Education, and Related Agencies, a 7.6 percent increase over FY2021. This includes $13.2 billion for the Department of Labor, $108.3 billion for the Department of Health and Human Services, and $76.4 billion for the Department of Education.
$5.925 billion for the Legislative Branch.
$284.6 billion for Military Construction, Veterans Affairs, and Related Agencies. This includes $14.9 billion for military construction and $112.2 billion for the Department of Veterans Affairs.
$56.1 billion for State, Foreign Operations, and Related Programs. This includes $17.2 billion for the State Department and Related Agencies, as well as $1.97 billion for the Agency for International Development.
$157 billion for Transportation, and Housing and Urban Development, and Related Agencies. This includes $102.9 billion for the Department of Transportation and $53.7 billion for the Department of Housing and Urban Development.