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SAVE Act
Next week, the Senate will debate and vote on the SAVE Act, which would require people to show elections officials proof of citizenship in order to register to vote or update their voter registration. The bill also limits the use of mail-in, same-day, online, and automatic voter registration, which could impact nonprofit voter registration activities.
The bill is expected to fail in the Senate, but not after a lengthy, possibly week-long debate. Republican leadership have so far resisted pressure from President Trump and others to change the rules of the filibuster to allow the bill to pass with only a simple majority, rather than the 60 votes typically needed. As such, the bill is not expected to garner the support needed for enactment. Because the vote is likely to fail, Republican leadership may add additional, unrelated provisions banning transgender women in sports and gender-affirming surgery for children.
FNA and the National Council of Nonprofits are closely monitoring the bill and whether the Senate considers any changes to the filibuster.
SPONSOR Act
Senators Cruz (R-TX) and Budd (R-NC) introduced the Stop Proxy Organizations Nurturing Subversive Operations and Riots (SPONSOR) Act. Rep. Moran (R-TX) introduced the House companion.
The bill, if enacted, would hold 501(c)(3) fiscal sponsors civilly and criminally liable for the actions of a sponsored entity that engages in certain unlawful behavior, including aiding or abetting terrorism, injuring, intimidating or interfering with someone exercising a constitutional right, or blocking commerce (such as blocking traffic).
Fiscal sponsorships were a significant topic at a recent hearing in the House Ways and Means Committee, where some members of Congress argued that foundations located outside of the U.S. used fiscal sponsorships to funnel tax-deductible resources into unlawful activities.
Proposed Changes Harming Federal Grantees and Their Communities
The General Services Administration (GSA) has proposed changes to the System for Award Management (SAM). The GSA is proposing to require all federal grantees, including nonprofits, to sign new certifications as a prerequisite to apply for or receive federal financial assistance. For more information, read the proposed changes and supporting materials.
If implemented, the proposed changes would directly impact nonprofits, state and local governments, tribes, and other entities that apply for or receive federal financial assistance, including discretionary, mandatory, block, and formula grants, cooperative agreements, loans, insurance, and direct appropriations.
Under the proposed changes, applicants and recipients of federal financial assistance would be required to sign new certifications under penalty of criminal and civil law. These certifications align with President Trump’s executive order and the U.S. Department of Justice guidance, which misrepresents “illegal” diversity, equity, and inclusion (DEI). The revised certification also includes provisions on undocumented immigration and anti-terrorism.
The proposed changes are vague and complex, making it nearly impossible for nonprofits to know whether they are in compliance. Moreover, it exposes nonprofits to possible legal harassment by the Administration. Nonprofits wrongfully accused would have to spend an enormous amount of staff time and resources defending themselves in audits, investigations, and court. With the new certifications, nonprofits may decide that it is not worth the risk and will forgo applying for federal funds altogether, leading to service disruptions. Ultimately, the proposed rule will harm the people and communities that rely on nonprofit organizations and the essential services they provide.
ACTION ALERT: The public has until March 30 to submit public comments in opposition to the proposal. The National Council of Nonprofits has created several tools to help you make your voice heard.
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