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SAVE Act
The Senate is continuing to debate the SAVE America Act, which would require individuals require individuals to show proof of citizenship in person to state elections officials to register to vote or update voter registration. The legislation would also largely ban automatic, mail-in, and same-day voter registration, directly impacting nonprofit voter registration activities. The bill is not expected to pass the Senate, where 60 votes are needed to overcome a filibuster. But, debate is expected to continue through the end of next week - or longer.
Investigations into Nonprofits
The FBI and IRS are forming a new initiative to investigate nonprofits over suspected possible links to domestic terrorism. This action stems from the recent executive order identifying "Antifa" to be a domestic terrorist organization, and a national security presidential memorandum directing federal agencies to investigate and prosecute nonprofits and other entities that finance or support terrorism. The presidential memorandum goes beyond a focus on acts of political violence to include constitutionally protected viewpoints, including “anti-Americanism, anti-capitalism, and anti-Christianity; support for the overthrow of the United States Government; extremism on migration, race, and gender; and hostility towards those who hold traditional American views on family, religion, and morality.”
Second Tax Reconciliation Process
The National Council of Nonprofits (NCN) is keeping a close eye on whether Congress will attempt to enact a second tax reconciliation bill this term. Under a reconciliation package, Congress can enact certain tax and spending provisions with only a simple majority in the Senate, rather than the 60 votes typically needed.
While most experts felt it was unlikely that Congress would take up another reconciliation package - the process is very cumbersome and Republicans have only a razor-thin majority in the House - the war in Iran and the need for supplemental military funding are increasing the chances that Congress might turn to this process. If they do, If Congress takes up a reconciliation bill, we could also see renewed efforts to cut safety net programs, like Medicaid and SNAP, in the name of eliminating "waste, fraud, and abuse."
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 - LAST TWO WEEKS TO PARTICIPATE: 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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