Things are moving fast:
May 14, 2025: This morning, the U.S. House Ways and Means Committee passed its portion of the major tax reconciliation bill and things will move quickly from here.
The full reconciliation bill heads to the House floor for a vote as soon as next week. If the bill passes the House, it will go to the Senate for a vote before going to the President’s desk. Congressional leaders have indicated the 4th of July as a goal deadline for passage – which means we need to raise our voices now.
The legislation includes many provisions that would have significant impact on nonprofits in Montana and those we serve. Please join us in urging Montana’s members of Congress to protect nonprofits and Montana communities.
Why it Matters
1. Harmful impacts for nonprofits:
Unprecedented authority to revoke nonprofit status from certain organizations without due process
Why This Matters: This legislation would allow the U.S. Treasury Secretary to revoke nonprofit status from “terrorist supporting” organizations, without requiring the Secretary to share full evidence or ensure due process. This authority would enable any Administration of any political party to target charitable organizations based on ideological grounds. Nonprofits wrongfully designated would be irreparably damaged, losing the trust of donors and the communities they serve.
Increased taxes on foundations as a “pay for” for significant tax cuts provided to corporations and high-income individuals
Why This Matters: This legislation would significantly reduce financial resources available to nonprofit organizations to advance their missions. At a time when nonprofit organizations face enormous financial challenges, the tax bill would make it even harder for organizations receiving funding from private foundations to serve their communities and fill the gaps unmet by local, state, and federal governments.
2. Threats to critical safety net programs:
The tax reconciliation package would deeply cut or restrict access to critical safety net programs, impacting communities and many of the people served by nonprofits.
The proposed bill would:
Cut Medicaid by requiring states to implement mandatory work reporting requirements and imposing “cost-sharing” on adult beneficiaries who earn just above the federal poverty limit. Proposals to weaken the ACA, including the expiration of enhanced premium tax credits, will also increase the number of uninsured people. Together, the proposals could result in 13.7 million people losing health coverage, according to the Congressional Budget Office (CBO).
Exclude low-income families from accessing the expanded Child Tax Credit. While the proposal increases the maximum value of the tax credit from $2,000 to $2,500, the benefit does not extend to the families who need it most, including 17 million children in low-income working households currently ineligible for the credit. Additionally, by making mixed-status immigrant households ineligible, 4.5 million U.S. citizen children would no longer have access to this resource. The bill would deepen existing inequalities in how the credit is distributed.
Cut the Supplemental Nutrition Assistance Program (SNAP) by more than 20% by shifting costs to states, limiting future increases to benefits to keep up with higher food costs, and imposing stricter work reporting requirements on older adults and parents. About 1 in 4 SNAP participants, including more than 20,000 people in Montana — live in households that would be at risk of losing at least some of their food assistance under the provision.
3. Other Provisions:
On the good side, the bill includes a modest non-itemizer charitable deduction for taxpayers. The tax bill creates a tax deduction up to $150 for individuals and $300 for married couples, regardless of whether the tax filers take the standard deduction. To help bolster the work done in communities by nonprofit organizations, Congressional leaders should ensure this provision remains in the tax reconciliation package and expand it to further incentivize charitable giving.