Federal Budget and Appropriations
Why It Matters
Budget and spending decisions by governments affect all Americans and these decisions can have immediate and serious consequences for the people nonprofits serve and the communities in which they operate. Nonprofits work in every community, whether caring for returning soldiers, educating children, rebuilding cities, training the workforce, nursing the sick, supporting our elders, elevating the arts, mentoring our youth, protecting natural resources, nurturing our souls, and much more. As front-line providers of services and as organizations grounded in their communities, charitable nonprofits have a stake in the strength and well-being of the economy and of governments at all levels. Conversely, given the vital role nonprofits play in both the economic and social well-being of our nation, society has an equally strong stake in ensuring that our nonprofits are healthy and able to fulfill their missions in support of the public good.
Where We Stand
The National Council of Nonprofits opposes arbitrary and across-the-board budget cuts at any level of government and will work to inform policymakers of the impact of budget proposals on communities. The Council of Nonprofits likewise opposes policies that institutionalize restrictions on lawmakers’ fiscal options in a manner that restricts state spending growth based on a formula, or that limits legislators’ tax policy options via inflexible measures such as constitutional amendments.
The National Council of Nonprofits opposes the offloading of government services onto nonprofits without paying nonprofits the cost of providing these services. When federal, state, and local revenue is reduced, nonprofits providing public services through grants and contracts with government typically receive disproportionate cuts.
- National Council of Nonprofits Public Policy Agenda
Status
FY 2020 Budget and Appropriations
Congress passed and the President signed 12 appropriations bills to fund the federal government in two separate bipartisan measures in late December 2019, days before an impending government shutdown. In total, the two bills spend $1.4 trillion in fiscal year 2020, providing $49 billion in extra funding across the government. Passage of these bills before Friday, December 20 will avert a federal government shutdown due to the expiration of a short-term funding bill.
- H.R. 1158, The Consolidated Appropriations Act, 2020: The first bill funds the federal Departments of Commerce, Defense, Homeland Security, Justice, Treasury, and general government operations. See division-by-division analysis. Price tag: $860 billion
- H.R. 1865, The Further Consolidated Appropriations Act, 2020: The second bill provides appropriations for the remaining federal departments and programs. The legislation contains numerous spending hikes of interest to charitable organizations, including an increase of $3.5 million for AmeriCorps, $5 million more for the emergency Food and Shelter Program, and a $7 million increase for the Volunteer Income Tax Assistance (VITA) program, to highlight a few. H.R. 1865, as amended also includes the tax measures discussed above, as well as several other policy changes, such as an increase in the minimum age for purchasing tobacco products. See division-by-division analysis. Price tag: $540 billion.
Federal Budget and Appropriations Process
The federal budget process begins each year with the release of the President’s blueprint in early February. The House and Senate consider these Executive Branch recommendations as they adopt a budget resolution that sets spending and revenue targets for the year. Once the spending targets are established, the House and Senate Appropriations Committees each process 12 separate bills that are supposed to be completed before the start of the new fiscal year on October 1.
Key Appropriations Issues
The National Council of Nonprofits tracks appropriations for key programs that assist nonprofit organizations in serving individuals and communities across the country.
