Federal policy news from National Council of Nonprofits

Congress cuts $38 billion from federal budget

From the National Council of Nonprofits

> Current Year Spending Bill Enacted – Before leaving for the Passover-Easter recess, Congress finalized the spending bill that funds the federal government through Sept. 30. The legislation cuts around $38 billion from 2010 levels, providing $23 million less for AmeriCorps and eliminating the Learn and Serve program, both administered by the Corporation for National and Community Service. Visit our website for more information about the FY2011 spending law.

> House Passes 2012-2021 Budget Plan – The House passed a $3.5 trillion budget resolution for 2012 through 2021 designed to cut the federal budget by $5.8 to $6.2 trillion over the period. Although a budget resolution is not binding, the components of the plan give a clear indication of policies the House Majority intends to pursue. The budget blueprint seeks to reduce non-security discretionary spending to below 2008 levels and then freeze for five years, calls for changes to Medicaid and Medicare, and instructs lawmakers to lower tax rates and eliminate $1 trillion in unspecified “tax earmarks.” The Senate budget proposal is scheduled to be released in May and is expected to be markedly different from the House plan, setting Congress up for another contentious debate on spending and tax priorities. Read more about FY2012 budget proposals and the federal budget process.

> Debt Ceiling Showdown – Another financial and political crisis is looming as the federal government rapidly approaches its borrowing limit, which Treasury Secretary Timothy Geithner predicts will be on May 16. Failure to raise the debt ceiling will cause the United States to default on its obligations, according to Geithner, but the issue of raising the limit is being used primarily by Republicans to gain political leverage for more spending cuts and reforms. Attention is focused on the work of the so-called “Gang of Six” in the Senate – six Senators who are working to convert into legislative language the deficit reduction package of reforms proposed by the National Commission on Fiscal Responsibility and Reform (Bowles-Simpson Commission).

Click here for the complete April 25 edition of Nonprofit Advocacy Matters from the National Council website.