Public Policy Update - June 25, 2025
Congress Needs to Hear from Philanthropy on Private Foundation Excise Tax
Last week saw encouraging news on some of philanthropy’s top priorities on the “megabill” the Senate is expected to vote on this week – but a proposed increase in the private foundation excise tax could still return if Congress doesn’t know about the impact it could have on communities across our region!
Currently, the legislation headed to the Senate floor does not include a provision from the House-passed bill that would raise the private foundation excise tax to as high as 10 percent on the largest foundations. The Senate’s bill also includes a strong, permanent universal charitable deduction that is far better than the small, temporary deduction the House passed last month.
However, both provisions could change as Senate Republicans work to pass the legislation in their chamber and come to an agreement with their House counterparts on what the final package will look like. With Republicans still aiming to send the bill to the White House by July 4, the next few days are critical to determining the bill’s impact on the charitable sector.
You can support philanthropy by contacting senators and representatives this week. Here’s what they need to know:
- Any increase in the private foundation excise tax means less money would be available to help local and state communities.
- Instead of going to Washington, philanthropic dollars should remain where they can be most effective – at home.
- The strong, permanent universal charitable deduction in the Senate bill would reward and encourage giving at a time of incredible need.
- If you are a staff or trustee of a private foundation that would be affected by the proposed tax increase, tell lawmakers about the work your organization does – and what could be at risk if your foundation is required to send more money to Washington.
Along with contacting offices in Washington, contacting House members’ district offices can be very effective. Contact information for these offices can be found on each member’s website – you can find that information here. Contact information for senators is available here.
Thank you for your continued outreach and support of a strong charitable sector!
Work on “Megabill” Continues as GOP’s Deadline Nears
Republicans in Congress are still intent on sending a massive tax-and-spending package to President Trump by July 4 – but in order to do that, they’ll need to quickly resolve disagreements not only among Senate Republicans, but also among GOP leaders in the House and Senate.
As of today, the Senate plans to start holding votes on the package on Friday. The contents of the bill could change substantially as the Senate’s nonpartisan parliamentarian issues rulings on which provisions comply with the chamber’s intricate rules for using the fast-track reconciliation process.
The primary disagreement among Republicans revolves around the amount of Medicaid cuts in the bill. Sen. Thom Tillis (R-NC) has been among those raising concerns around cuts to coverage. Politico reported that House Speaker Mike Johnson (R-LA) has warned Republican senators that the Medicaid cuts they are considering – deeper than those in the House-passed bill – could be a political liability.
