What We're Tracking in DC
Biden Administration Releases the “Green Book”
The Biden Administration released the President’s budget request for fiscal year 2025 and its associated revenue proposals — also called the “Green Book.” As it has for the past two years, the Green Book includes two restrictions that would impact foundations:
- It prohibits private foundations from counting payments to disqualified individuals—including salaries to family members—toward their 5% payout requirement.
- It limits private foundation to donor advised fund transfers. Any funds transferred from a private foundation to a DAF would have to be paid out by the end of the following taxable year to be a qualifying distribution for the private foundation.
It is important to note that the President’s budget request is not U.S. law, and current law has not changed. Rather, the budget request and the Green Book serve as messaging documents that lay out the President’s priorities for the upcoming fiscal year.
IRS Funding Stays Flat in Fiscal Year 2024 Appropriations Bill
Congressional appropriators released text for a government funding bill for the current fiscal year. The legislation, which must be passed before midnight on Friday to avoid a partial government shutdown, keeps IRS funding at $12.3 billion — the same as for FY2023. The package also includes a $20.2 billion reduction in the IRS funding authorized as part of the Inflation Reduction Act.
Locally Led Development and Humanitarian Response Act (H.R.7710/S.3994) Introduced
This week, Rep. Sara Jacobs (D-CA) and Sen. Chris Coons (D-DE), along with Sens. Joni Ernst (R-IA), Tim Kaine (D-VA), and Pete Ricketts (R-NE), introduced bipartisan legislation aimed at strengthening locally led development. This bill would clear some hurdles that currently make partnering with locally led organizations abroad difficult for USAID, including authorizing the agency to accept proposals in languages other than English. The bill has already been passed by the House Foreign Affairs Committee. Read a summary.