President Joe Biden recently signed into law a $1.7 trillion omnibus spending bill (H.R. 2617) to fund the federal government through the remainder of the fiscal year (through September 30). Unfortunately, the omnibus spending bill does not restore the universal charitable deduction and two other incentives for charitable giving that expired at the end of 2021, nor does it retroactively restore the Employee Retention Tax Credit, which had expired after the third quarter of 2021. It also doesn’t reinstate the enhanced child tax credit, which had led to record-low child poverty levels last year and which also expired at the end of 2021.

On a positive note, the omnibus spending bill does include several spending increases that will benefit many nonprofits, including a 30% increase in funding for the Child Care and Development Block Grant, increased funding for the Community Development Block Grant and the Homeless Assistance Grants, and significant new investment in the Supplemental Nutrition Assistance Program. The bill also spends $15 billion on 7,200 earmarks to local governments and nonprofits around the country. 

To help your organization better understand the implications of the omnibus spending bill for charitable nonprofits, the National Council of Nonprofits has provided a helpful two-page summary of highlights and lowlights in the bill for nonprofits.