Must-Pass Legislation Command’s Congressional Attention as Bills Impacting the Philanthropic Sector and Southwest are Introduced
 
Lawmakers departed Washington on July 27 for the month-long August recess after making some progress on priorities like government spending and defense legislation. Still, with several must-address items set to expire on September 30, Congress will be staring down a packed agenda when they return after Labor Day.
 
Government funding, the Farm Bill, and defense legislation, among other must-pass items, will all need to be addressed by the end of September for Congress to avoid the expiration of important federal programs. If Congress cannot complete its work on government funding bills ahead of the September 30 deadline, lawmakers will likely pass a short-term funding bill to avert a government shutdown, which could delay the disbursement of earmark funding for some nonprofits. Should a short-term funding measure tee lawmakers up to pass a more robust spending package later in the year with tax proposals, sector priorities like the Charitable Act (S. 566, H.R. 3435), which would revive and expand the universal charitable deduction, could be among those considered for inclusion. Otherwise, the must-pass items listed above may crowd out progress on smaller initiatives.
 
While Congress only made some progress on high-priority legislation like government funding in July, the work period nevertheless saw the introduction of bills relevant to the philanthropic sector and the Southwest. On July 28, bicameral legislation was reintroduced to establish a $100 million program for community projects to address extreme temperatures, especially in disadvantaged communities, with nonprofits being eligible to receive the funding. Importantly, heat is not currently among the natural catastrophes that could qualify under the federal disaster relief statute as a natural disaster, as hurricanes and floods are, making it more challenging to access federal emergency funds. The legislation, dubbed the Preventing Health Emergencies and Temperature-Related (HEAT) Illness and Deaths Act (S. 2645, H.R. 4953), counts regional lawmakers Sen. Kyrsten Sinema (I-AZ) and Rep. Ruben Gallego (D-AZ) as original cosponsors. Although it failed to gain traction last Congress, the recent string of heat waves across the country could help champions build more support for the proposal this year.
 
Also of note, on July 17, Sens. Gary Peters (D-MI), James Lankford (R-OK), and John Cornyn (R-TX) introduced the Streamlining Federal Grants Act (S. 2286) to simplify the grants process across the federal government. The bill would create a Grants Council to provide guidance to federal agencies on how they can streamline their grant application processes, which could make it easier for nonprofits to engage with the federal grant process as they seek to access additional funding streams in the wake of declining donations. The Senate Homeland Security & Governmental Affairs Committee advanced the bill out of committee on July 26, but it is unclear when the full chamber may consider the initiative. We will continue to monitor these bills in case they gain momentum as Congress’ year-end agenda comes into focus.
 
Independent Sector Report Indicates Decline in Nonprofit Advocacy and Encourages Greater Sector Engagement
 
Last month, Independent Sector released a report analyzing nonprofit advocacy and public engagement, which found steep declines in nonprofit advocacy since 2000. Only 31 percent of nonprofits engaged in advocacy or lobbying over the last five years (down from 74 percent in 2000), and just 25 percent of respondents reported ever engaging in lobbying. One contributor to these declines cited in the report is a lack of understanding about what is legally permissible, with only 32 percent of survey respondents saying they were aware they could publicly support or oppose federal legislation (down from 54 percent in 2000). To address these declines, the report recommends sector organizations step up education efforts to inform nonprofits about what actions are allowed and encourages nonprofits to consider more broadly how public policy can align with or help advance their missions.