Government Affairs Update: Reconciliation Act, NEA Updates, and What We're Keeping an Eye On

The political landscape in Washington, DC continues to evolve daily. Chorus America needs to hear from you: How are the federal government’s actions affecting your work? All stories of specific impact are welcome. Please share your experience here. Thank you to those members who have already shared their stories with us. 

Visit our Government Affairs Resource Page for more tools.

These government affairs updates are provided for informational purposes only and are not intended as legal advice. Nonprofit arts organizations should consult with legal counsel for guidance specific to their circumstances.

Chorus America is tracking three bills that have a direct impact on America’s choral community:

1. The Reconciliation Act (H.R.1), also known as the “Big, Beautiful Bill,” includes tax cuts, various spending cuts, and changes to charitable giving provisions.  The bill is now law.  Additional information is below.
2. Appropriations for FY26 will determine funding for the National Endowment for the Arts, and other cultural agencies.  This process is still in its early stages.

3. The Rescissions Package of 2025 (H.R. 4) proposes clawing back funds from public media and foreign aid. The House has approved the package. We are waiting to see what the Senate does by its deadline of July 18th.

    

President Signs the Reconciliation Act (also called the One Big Beautiful Bill) into Law 

On Friday, July 4, the President signed the Reconciliation Act (text here) into law. The final bill includes a permanent charitable deduction for non-itemizers, which is expected to greatly increase donations by non-itemizers.  And, the final bill does not include an increased tax on private foundation endowments.  As a member of the Charitable Giving Coalition, Chorus America and its members advocated for these increased charitable giving incentives and to protect the nonprofit sector.  Thank you to everyone who responded to our calls to action and contacted Congress! 

The following provisions that impact charitable giving are now law:

• Individuals may deduct up to $1,000 and married couples may deduct up to $2,000 of their charitable gifts each year, regardless of whether they itemize their returns. A separate provision partially pays for this permanent, above-the-line charitable deduction by adding a new 0.5% adjusted gross income (AGI) floor on taxpayers who itemize for eligible charitable deductions.
• For individuals in the top tax bracket, the value of itemized deductions are capped at about 35 cents on the dollar.
• Establishes a 1% floor for the deduction for charitable contributions made by corporations and allows corporations to carry forward the tax benefit for 5 years.
• A permanent extension of the 60% Adjusted Gross Income limit for cash contributions to charity. (This would have otherwise reverted to 50%).

View National Council of Nonprofit’s chart of the tax provisions that impact nonprofit organizations, here.

Additional information on the Universal Charitable Deduction is available on The Nonprofit Alliance’s overview, here.

Update:  Lawsuit against the NEA

On June 30, four arts organizations filed a motion in their ongoing lawsuit against the National Endowment for the Arts (NEA).  The organizations argue that the NEA is violating the First Amendment, Fifth Amendment, and Administrative Procedure Act in its implementation of an executive order that prohibits federal funding for “gender ideology.” 

The latest motion is a request for a summary judgement in the case.  If granted, the suit could be resolved without trial.

The latest motion text can be viewed here.

Reminder:  NEA Grant Application Deadlines this Month

The NEA has two grant opportunities open:

1. Celebrating America250: Arts Projects Honoring the National Garden of American Heroes – Application deadline is July 14 ,2025.
2. Grants for Arts Projects – The Application’s Part 1 is due July 17, 2025.

The NEA has an updated FAQ page here.

The NEA has a notice addressing its handling of the President’s Executive Order 14168, here.

Department of Education Freezes Funds to States & Schools

The Department of Education is withholding grant funds that states and schools expected by July 1, 2025.  The freeze in funding is to review the grant programs and their alignment with the Administration’s priorities, according to the DOE. 

Choral groups that participate in after-school programming, Boys & Girls Club programming, and more may be impacted immediately by the funding freeze.

The Learning Policy Institute, a bi-partisan think tank, has a breakdown of withheld funding by state, here.