Legislative Round-Up | January 2025

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The National Council of Nonprofits has compiled a comprehensive resource tracking the executive orders affecting charitable nonprofits, including those that threaten funding and DEI efforts. You can access it here.

Congress Kicks Off 2025: A Pivotal Year for the Nonprofit Sector

The 119th Congress has convened, ushering in a new administration and an ambitious legislative agenda that will significantly impact the nonprofit community.

The Universal Charitable Deduction will be Front and Center.

The Charitable Act has been reintroduced in both chambers, S. 317 and H.R. 801, with impressive bipartisan backing. In the Senate, James Lankford (R-OK) and Chris Coons (D-DE) continue as lead sponsors. The House brings together a bipartisan quartet of champions: Representatives Blake Moore (R-UT), Danny Davis (D-IL), Carol Miller (R-WV), and Chris Pappas (D-NH).

The path forward, however, is complicated. Success hinges on incorporating the Charitable Act into this year’s massive $4-5 trillion tax package. While early movement is possible, Congress typically drives toward resolution when facing deadlines. The critical date to watch is December 31, 2025, when provisions of the 2017 Tax Cut and Jobs Act expire. The looming threat of across-the-board tax increases for individuals and corporations will likely compel action before year’s end. TNPA’s mission is clear: ensure the Charitable Act secures its place in this comprehensive tax package.

Privacy Legislation Gains New Momentum.

The Republican Senate majority brings significant changes that could accelerate progress toward comprehensive bipartisan privacy legislation. Key leadership positions are now held by Senator John Thune (R-SD), the Senate Majority Leader; Senator Ted Cruz (R-TX), chair of the all-important Senate Commerce Committee, and Senator Jerry Moran (R-KS), who will continue to be a key player serving on Senate Commerce. All three Senators have a long history of advocating for national privacy legislation that would preempt current or future state privacy statutes. While immediate Senate focus remains on immigration, energy policy, and confirmations, we anticipate privacy legislation gaining traction later in the year.

The need for national privacy legislation has never been greater, given that already 14 states have their own state privacy statutes, and the list is likely to grow with many state legislatures again going into session. Of particular concern is Oklahoma House bill HB 1012, which was prefiled in December, but has yet to be referred to committee. The legislature is scheduled to convene on February 3. This opt-in privacy bill has been a longtime concern of TNPA. Last session a nearly identical bill, HB 1030 passed the Oklahoma House but did not advance further. We will be watching this one carefully.

AI Regulation Shows Promise.

AI regulation shows promise. The prospect of bipartisan AI regulatory legislation looks increasingly viable for 2025. Senators John Thune (R-SD) and Amy Klobuchar (D-MN) are expected to again introduce their legislation, which successfully cleared the Senate Commerce Committee last summer. Given Thune’s elevation to Senate Majority Leader, it could carry renewed momentum.

Vigilance is Required for Tax-Exempt Status Protection.

We remain alert to potential legislation threatening nonprofits’ tax-exempt status. HR 9495 passed the House late last year before failing in the Senate, and similar proposals could resurface. The previous legislation would have granted the Treasury Department unprecedented authority to revoke tax-exempt status without due process, including social justice groups, media organizations, universities, and civil liberties organizations.

This critical year demands our sustained engagement as these issues evolve. We’ll keep you informed of developments and opportunities for action.

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Legislation in the States

Read more about new state laws and proposed state bills that could impact the work of the nonprofit sector by visiting TNPA’s State Legislation webpage.

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Around Capitol Hill in 90 Seconds with Mark Micali
January 2025 | Recorded: 1.15.2025

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Congressional Spotlight: Congressman Brett Guthrie (R-KY)

Each month TNPA introduces you to a member of Congress who is a leader on legislative matters important to our TNPA community, with representation from both parties.

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The Nonprofit Alliance has worked closely with Congressman Brett Guthrie.

In 1987 Congressman Guthrie graduated from the United States Military Academy at West Point and went on to serve as a Field Artillery Officer in the 101^st Airborne Division – Air Assault at Fort Campbell, Kentucky. He later earned a Master’s Degree from Yale University in Public and Private Management.

Following his military service, Congressman Guthrie joined Trace Die Cast, a Bowling Green, Kentucky based manufacturing business that was started by his father. His career in public service began in 1998 when he was elected to the Kentucky State Senate. Then in 2008 he was elected to the U.S. House of Representatives. Very early in his House career he was recognized for his leadership qualities serving three terms as Deputy Whip in the House Republican Conference. Then with the start of the 119^th Congress on January 3, 2025 his leadership skills were further recognized when he was elected by his colleagues to serve as the Chairman of the House Committee on Energy and Commerce. The committee is not only the oldest standing committee in the House, but also has broad jurisdiction over our nation’s energy policy, the environment, health care, telecommunications, and data privacy and the flow of data – an area important to charities as they continue to advocate for the responsible use of data to both reach their donors, as well as carry out their missions.

We at The Nonprofit Alliance know Congressman Guthrie best for his cosponsorship of H.R. 3435, The Charitable Act. This bipartisan legislation would provide a tax deduction for all taxpayers – regardless of their level of income – when making a charitable contribution. With only 7.5 % of taxpayers itemizing their taxes and thus eligible to claim a deduction when supporting a charity, the other 92.5% of taxpayers receive no tax benefit when supporting charitable causes. Having Congressman Guthrie on this legislation is a real plus!

The Nonprofit Alliance looks forward to continuing to work closely with Congressman Guthrie of Kentucky.

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