Ahead of the new year, President Joe Biden signed into law a $1.7 trillion yearlong federal government spending package.

The law includes several provisions Michigan philanthropy has supported around charitable donations and child care, including a modified Legacy IRA Act.

The federal spending law includes several investments in child care and education and includes several nonprofit earmarks worth billions of dollars. 

In early 2021, after a decade-long absence, Congress reinstituted Congressionally Directed Spending (often referred to as earmarks). Earmarks are included in federal funding bills and provide funding to specific nonprofits and government entities.  

This week, CMF members are invited to join the Michigan Nonprofit Association and Michigan Association of United Ways to learn about the steps you can take to secure congressional earmarks and leverage federal funding for your communities.

The law provides $8 billion for the Child Care and Development Block Grant, a 30% increase in funding, that gives financial assistance to low-income families to afford child care. Head Start will also receive nearly $12 billion, an 8.6% boost.

Increasing access to high quality affordable child care has long been a priority for CMF members. In July, CMF joined with our partners at Michigan’s Children calling on Congress to provide additional funding to the Child Care and Development Block Grant in the reconciliation package to mitigate the impact of expiring relief funding, help address child care supply and capacity issues and support high-quality options for working families. 

However, the law did not include the restoration of the Universal Charitable Deduction or expansion of the Child Tax Credit, which CMF members have advocated for.

CMF members have advocated for several years for the Legacy IRA Act and other giving incentives to promote charitable giving during Foundations on the Hill (FOTH).

The law includes a modified version of the Legacy IRA  Act. The Legacy IRA Act encourages charitable giving by enabling seniors to make tax-free contributions from individual retirement accounts (IRAs) to charities through life-income plans. 

This modified version allows seniors to make a one-time $50,000 (adjusted for inflation starting next year) donation to a qualified charitable organization through a split-interest trust.

Senator Debbie Stabenow has been instrumental in advancing this bipartisan retirement legislation.

Senator Stabenow, along with Senator Kevin Cramer, reintroduced the bipartisan Legacy IRA Act in February 2021 to further encourage and incentivize charitable gifts from IRAs.

In March 2022, Kyle Caldwell, president and CEO of CMF, along with CEOs from the Michigan Nonprofit Association, Flint Institute of Arts and American Red Cross Mid-Michigan Chapter, among others, met with Senator Stabenow to discuss how the Legacy IRA Act would benefit Michigan nonprofits and spur charitable giving among seniors. 

Senator Stabenow has engaged with our Michigan community of philanthropy over the years during FOTH to deepen relationships and better understand how policy and the nonprofit sector can work together.

Stabenow recently announced that she would not seek re-election in 2024.

“We are grateful for Senator Stabenow’s dedicated and exemplary public service and longtime partnership with Michigan philanthropy,”  Caldwell shared. “She has been a stalwart champion for our sector whether in Washington or her roles in Michigan. We look forward to once again connecting with her during FOTH this year.”

Senator Stabenow has served over 26 years in Washington including two terms in the U.S. House and now the U.S Senate. She is Michigan’s first female U.S. Senator. 

CMF members will be advocating and engaging with policymakers to deepen connections at FOTH in Washington, D.C., in February.

Want more?

Read more about what is included in the federal spending law.

Join your fellow CMF members for the return of an in-person FOTH in Washington, D.C., taking place February 27-March 1.