Updates on Federal Funding and Congressional Hearings

Congress is making progress on spending bills, but the congressional calendar is adding some challenges. Next week, the Senate is out of session. When they return the last week of the month, the House will be on recess. This gives congressional leaders a narrow path to enacting all the spendings they need before the current Continuing Resolution (CR) expires on January 30 when Congress must either enact its remaining full-year spending bills or another CR, or it risks a government shutdown.

 

There are four remaining spending bills to contend with: Defense, Transportation-HUD (THUD), Labor-HHS-Education (LHHS) and Homeland Security. We are expecting the Appropriations Committees to release legislative text over the weekend for three of these spending bills (Defense, THUD, and LHHS). The goal is to take up and vote on these bills in the House next week in order to tee them up for the Senate when they return from recess the last week of January.

 

The biggest open question is related to Homeland Security funding. Some Democrats are pushing for reforms to U.S. Immigration and Customs Enforcement ICA) in the funding bill, and it is unclear whether congressional leaders can reach a bipartisan deal. If they cannot, they may try to enact a CR for Homeland Security funding.

 

Next Wednesday, the House Judiciary Subcommittee on Crime and Federal Government Surveillance will hold a hearing on "When Public Funds Are Abused: Addressing Fraud and the Theft of Taxpayer Dollars." The hearing will focus on how "fraud schemes have exploited multiple federally funded programs in Minnesota and wasted billions in American taxpayer dollars" and "the need for enhanced investigation, enforcement, and prosecution to ensure offenders are held accountable." Nick Shirley, the YouTuber who alleged fraud among Somali-run childcare centers will testify. NCN will monitor this closely for any possible impacts on nonprofit grantees/contractors. 

The House Judiciary Committee will hold a hearing on Feb. 11 with Attorney General Pam Bondi. NCN will monitor this hearing for any new information related to DOJ investigations into nonprofits.

The Senate DOGE Caucus, led by Senator Ernst (R-IA), is meeting today to put together a legislative package to target fraud in federal programs. The legislative package is a response to alleged fraud in Minnesota, but it could impact nonprofits nationally.