Second Rescission Package
The Trump administration is preparing to send Congress a second rescission package, just days after Congress approved the cancellation of $9 billion in funding for USAID, PBS, NPR, and world health programs. While it is unknown which specific programs will be included in the second rescission package, the new proposal is expected to target the Department of Education, with additional agencies possibly being affected. Once the package is released, Congress will have 45 days to act, or else the Administration will be legally required to spend the funds.
The Administration has argued that it can use “pocket rescissions” to automatically rescind funding without congressional approval – a move the Government Accountability Office (GAO) has found to be unlawful. The Administration suggests that if the President makes his rescission request less than 45 days before the start of the new fiscal year on October 1, and Congress fails to act, the funds are automatically deemed to be revoked.
NAO will continue to monitor this and share updates as we learn more.
Release of Department of Education Funds: Tomorrow, the Department of Education will release $1.3 billion in previously withheld grant funding for after-school and summer programs. The Administration continues to withhold almost $5 billion in funding that supports English language instruction, teacher development, and adult literacy programs. Over 20 states have filed a lawsuit challenging the Administration’s decision to withhold funding from the Department of Education.
Protecting Nonprofits from Partisan Politics: Finally, the IRS is seeking court approval of a settlement between it and the National Religious Broadcasters, along with two churches in Texas, that would undermine the Johnson Amendment, a longstanding law protecting nonprofits from partisan politics. If approved, the settlement would declare the Johnson Amendment unconstitutional and prohibit its enforcement against the two churches named in the case.
The National Council of Nonprofits, Independent Sector, Public Citizen, Interfaith Alliance, Americans United for Separation of Church and State, American Humanist Association, and Freedom From Religion Foundation have created a national sign on letter urging the Trump Administration to protect nonprofit nonpartisanship. All nonprofit organizations are encouraged to sign the letter here.