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ALERT! Senate Passes Federal VA-HUD Appropriation WITH Non-Profit Advocacy Restrictions Contacts with NJ conference committee members Frelinghuysen, Lautenberg Critical Click here to read the Center's position letter on this issue
On September 24, the U.S. Senate approved the VA-HUD appropriations bill (S. 1596) which contains several provisions that would severely restrict the advocacy and lobbying rights of non-profits. The bill now moves to a House/Senate conference committee, which will resolve the differences between the two versions. The amendments were sponsored by Senator Christopher Bond (R-MO), chair of the Senate VA-HUD Appropriations Subcommittee. The following provisions are of particular concern: Broad restrictions on policy communications - Existing federal laws and regulations already prohibit the use of federal funds for lobbying, except in specific cases. Section 430 of the proposed bill would greatly expand this restriction by banning the use of federal funds appropriated under the covered departments "for any activity or the publication or distribution of literature that is designed to promote public support or opposition to any legislative proposal on which congressional action is not complete." This clause was amended slightly from a previous version that would have precluded use of federal funds "for any activity…that in any way tends to promote public support or opposition…" (emphasis added in both instances). Nevertheless, the vague, sweeping language of this provision would affect a wide array of communications or research produced or distributed, in whole or in part, with funds originating from any of the government agencies covered under this appropriation. EPA Restriction - Under the bill, a 501(c)(3) organization would have to certify that it had not used federal funds to engage in litigation against the United States - or forego eligibility for EPA funding. This provision applies only to 501(c)(3) charities - not to trade associations or for-profit businesses. It would apply even if litigation against the U.S. was conducted legally with federal funds pursuant to another federal statute (as is the case with legal services or activities conducted under the Developmental Disabilities Act). Segregation of Funds and 5-year Debarment Penalties - Section 425 of the Senate version prohibits the use of the funds appropriated under the Act for lobbying or litigating against any federal agency or official, a ban that is largely consistent with current law and regulations. However, section 425 also requires grant/contract recipients to maintain funds appropriated under this bill in "an account separate from any funds used for litigating or lobbying." This phrase seems to suggest that a separate bank account would be required, unlike current law which allows organizations to allocate funds using generally accepted accounting principles. If an organization violated the terms of this section or Section 430 (described above), it would be barred from receiving funds from any of the covered government agencies for a period of five years - a penalty far more severe than under any other law or regulation covering non-profits. It had been previously believed that the problems with this provision had been resolved, but we have learned that only one portion, covering local-level lobbying activities and litigation, was amended in the Senate. Senator Frank Lautenberg (D-NJ), a subcommittee member, has been taking a leadership role in fighting these provisions. His office was instrumental in getting Senator Bond to agree to delete the troublesome restriction covering litigation and local-level lobbying from the bill. Senator Lautenberg has been appointed to the House/Senate conference committee that will negotiate the final language in the bill, as has New Jersey Representative Rodney Frelinghuysen (R-11). Action Needed: This bill is a serious threat to the advocacy and policy rights of all non-profits. If allowed to pass, it would stifle legitimate lobbying activities and set a dangerous precedent for other Congressional appropriations. It is vitally important that all non-profits voice their strong opposition to these provisions, whether or not they receive funding from one of the covered government agencies. We have been told that we MUST generate a huge outpouring of phone calls/faxes from a broad cross-section of non-profits in order to have a chance of defeating these proposals. Conference committee staff are likely to be developing their recommendations THIS WEEK, so fast action is critical. Please FAX and mail letters to Senator Frank Lautenberg and Congressman Rodney Frelinghuysen - the two New Jersey members of the conference committee - to express your concern about these proposals and, if possible, describe specifically how they would affect your organization. Senator Lautenberg should also be thanked for his leadership on this issue on behalf of the non-profit community. Also contact Senator Robert Torricelli and your own Congressional Representative (if he/she is someone other than Congressman Frelinghuysen) to express your concerns. Also, please take a moment to fax copies of all letters to the Center (fax: 732/227-0087) so that we can monitor New Jersey's activity on this issue and forward copies to the Let America Speak Coalition. Contact information for Senators Lautenberg and Torricelli and Rep. Frelinghuysen appears below. If you need more information or would like a sample letter, contact Linda Czipo at the Center for Non-Profits at 732/227-0800 or or e-mail center@njnonprofits.org. We will keep you posted of any new developments, either by phone, fax or via our Web site at http://www.njnonprofits.org. Click here to read the Center's letter to Senator Bond KEY VA-HUD APPROPRIATIONS CONTACTS: The Honorable Frank Lautenberg The Honorable Robert Torricelli Honorable Rodney Frelinghuysen
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