Federal Updates: Taxes, Workforce, Grantmaking

Defending Nonprofits in Federal Tax Bill

Advocacy from the nonprofit community preserved the current tax treatment of nonprofit organizations. Outreach from chambers of commerce played a major role in ensuring tax increases on the nonprofit sector never made it into the legislation. Thank you for your grassroots messages to federal lawmakers outlining the pivotal role chambers of commerce play supporting our economies and communities.

• Is Part II Coming? There are rumblings that Congress may consider another mega-bill to consider tax proposals that did not make the first bill. We must remain vigilant as tax proposals continue to be discussed on Capitol Hill. ACCE continues to engage in the national Community Impact Coalition and we will bring you updates as they develop. 

Workforce Changes Included in the Bill

The legislation signed into law also included new tools te help Americans access the skills and knowledge they need to be successful in today’s economy. The final bill:

• Expands the use of 529 plans to cover postsecondary training and credentialing, such as licenses and nongovernmental certifications.
• Transforms college savings plans into career savings plans, creating more viable pathways to access the skills training needed to achieve career success.

New Executive Order Alters Federal Grantmaking

President Trump issued an executive order last week changing the federal grantmaking process. The executive order:

• Directs the Office of Management and Budget to amend the uniform guidance to enable federal agencies to terminate discretionary grants “for convenience,” such as when the award no longer advances agency priorities, and to “appropriately limit the use of discretionary grant funds for costs related to facilities and administration.”
• Directs each agency head to designate a senior appointee who will be responsible for reviewing grant opportunity announcements to be sure any grants awarded “are consistent with agency priorities and the national interest.”

Read More: White House Executive Order | The Hill | Government Executive  

ACCE will continue to monitor implementation of this executive order and provide relevant updates. Chambers interested in staying up to date on this issue may also be interested in participating in Business for Federal Research Funding, a national coalition of chambers of commerce and business associations that advocates for maintaining and strategically increasing research funding in the federal budget – a smart and worthwhile investment that advances economic development. Learn More