Congress returns to unified federal government with the convening of the 119th Congress and the inauguration of Donald Trump next week. The Republican agenda reportedly will focus on cuts to spending and taxes while addressing immigration and energy policies. The most significant legislative action is expected in three areas:
FY 2025 Spending: Congress must fund the federal government beyond the mid-March expiration of a temporary spending bill. The challenge for House Republicans is that they will have only a one-vote majority in their famously fractured caucus.
Spending and Non-Tax Provisions: House Republicans reportedly are gearing up to advance spending cuts of at least $2.5 trillion in a budget reconciliation bill, potentially seeking major savings from Medicaid, “ending cradle-to-grave dependence," and terminating what is called a “student loan bailout.”
Tax Reconciliation Provisions: Nearly 40 tax provisions are scheduled to expire at the end of 2025 including the higher standard deduction and lower individual rates. Extending the expiring tax provisions and adding proposals raised on the campaign trail would add $5.5 trillion to the federal deficit unless offset by other tax hikes or spending cuts.
- Why It Matters: The upcoming debates could settle on myriad policies that could undermine or enhance the abilities of charitable nonprofits to advance their missions and serve in their communities. At the same time, the debates present opportunities for nonprofit advocates to promote new and improved solutions that recognize the role of charitable organizations in communities. Engagement early and often is key.
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