Center for Non-Profits - VA-HUD Update: Good News for Non-Profits

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VA-HUD Update: Good News for Non-Profits

Most troublesome provisions dropped; clarification being sought on one section
(Posted 10/13/99)

Late on October 8, the U.S. House/Senate conference committee considering the VA-HUD appropriation reached final agreement regarding the VA-HUD appropriation and attempts to restrict non-profit advocacy. The outcome is largely good news for non-profits: most of the troublesome language has been removed from the final version. Our deep thanks to all who wrote, called and faxed on this issue. Without question, your swift action and persistence made all the difference.

Because certain negotiations have not yet been completed, final language is not yet available. However, according to the "Let America Speak" coalition and Senator Frank Lautenberg's office, the status is as follows:

Section 428 (formerly Section 430) - This section would have banned the use of the appropriated funds "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 language was removed from the final version and replaced with language adopted in past Treasury/Postal appropriations bills, which is not problematic for non-profits.

EPA Restriction - This section, which would have required 501(c)(3) organizations to certify that they had not used federal funds to engage in litigation against the United States in order to be eligible for EPA funding, was dropped entirely.

Section 425 - The very good news is that proposals requiring separate bank accounts and imposing 5-year debarment penalties against violators were dropped. However, a replacement provision was adopted, the impact of which is not entirely clear (in part because conference committee staff has not yet released the final language). Senator Lautenberg's office has shared what they believe is the final version:

Insert in place of section 425 in Senate bill; pg 207 --
SEC.425. Except in the case of entities that are funded solely with Federal funds, [and natural persons,] none of the funds in this Act shall be used for the planning or execution of any program to pay the expenses of, or otherwise compensate, non-Federal parties to lobby or litigate with respect to adjudicatory proceedings funded in this Act. A Chief Executive Officer of any entity receiving funds under this Act shall certify that none of these funds have been used to engage in the lobbying of the Federal government or in litigation against the United States, unless authorized by existing law.

Analysts are still trying to discern the meaning of this provision. Because President Clinton is expected to sign the VA-HUD appropriation bill, this (or similar) language is what will likely become law. Senator Lautenberg's office and "Let America Speak" advocates are trying to insert clarifying statements in the conference committee report and pursue "technical corrections" if possible.

Nevertheless, non-profits have much cause to celebrate. PLEASE take a moment to write to Senator Frank Lautenberg and his staffer, (Mr.) Nikki Roy who championed this issue for the non-profit community. They continued to support non-profits throughout this process and they deserve our tremendous gratitude. (Address: The Honorable Frank Lautenberg, United States Senate, 506 Hart Senate Office Building, Washington, DC 20510, 202/224-4744, fax: 202/224-9707)

We will keep you informed of any new developments via our newsletters and Web site at http://www.njnonprofits.org. Thank you!

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