Nonprofit Groups Seek to Influence Senate Spending Plan

Now that debate on the economic-stimulus bill has moved to the Senate, some charity leaders are worried that proposals to steer new money to social-service programs will become casualties as lawmakers fight to cut or redirect the spending approved last week by the House.

“We’re getting signals from some of the [Senate] offices that in fact that can happen,” said Candy Hill, senior vice president for government affairs at Catholic Charities USA. She said Catholic Charities is organizing a “massive call-in” on Wednesday, asking its members to tell their senators “we really need this on the ground.”

The House’s $819-billion stimulus package included new money for Medicaid, food and nutrition programs, unemployment benefits, community health centers, early education, block grants to states for child care and social services, and AmeriCorps, the national service program. President Barack Obama backed the bill, but not one Republican voted for it.

Many Senate Republicans are now demanding less spending and more tax cuts, and some Democrats would like to provide more money to transit and highway projects.

“Our concern is there might be a perception that helping people barely getting by may be perceived by some as not necessary funding,” Ms. Hill said.

The Senate bill already includes less money for some social services than the House version. For example, the House proposes $20-billion for the Supplemental Nutrition Assistance program (formerly food stamps), the Senate $16.5-billion; $1-billion for the Low Income Heating Assistance Program, the Senate nothing; $1-billion for the Community Service Block Grant Program, the Senate $200-million; $200-million for the Emergency Food and Shelter Program, the Senate $100-million; $100-million for the Compassion Capital Fund, which provides money to religious and other groups to provide social services, the Senate nothing.

However, the Senate offers more for the Temporary Assistance for Needy Families program ($3.3-billion compared with the House’s $2.5-billion), and $400-million for Social Services Block Grants, to help states and nonprofit groups provide services to unemployed and low-income people (the House provide nothing).

Ms. Hill says Catholic Charities members plan to urge senators to preserve the higher spending levels, and in some cases to increase them. For example, she says, both houses propose providing $150-million for the Emergency Food Assistance Program, which provides commodities to states to distribute to food banks, but her organization recommends $300-million.

Other nonprofit groups are also hoping to shape the final stimulus package. Independent Sector, a coalition of charities and foundations, said in a statement the House “took a strong first step toward alleviating some of the growing hardship faced by millions of Americans.” But it is still fighting for several additional measures, including a $15-billion bridge-loan fund to help charities that are finding it hard to get credit cover lags in payments from recession-hit state governments.

The Council on Foundations said in its weekly legislative update that it is working with senators to include measures to create a “flat” excise tax for private foundations (instead of one that varies between 1 percent and 2 percent) and allow people who qualify to transfer money from their individual retirement accounts to charity tax-free to give it to donor-advised funds. Under current law, charities can receive such gifts — but they cannot be earmarked for donor-advised funds, which allow people to put money into account and distribute it over time.