Below are some federal policy updates as a federal shutdown looms:
Federal Government Shutdown Inevitable
The federal government’s fiscal year ends on Saturday, September 30, 2023, and there does not appear to be a deal yet by House Republicans to keep the federal government open with a temporary Continuing Resolution (CR). The Office of Management and Budget (OMB) released a detailed plan this week of how every federal agency will operate and slow down during a shutdown. This week, the Arts Action Fund presented its first virtual Arts Insider Political Briefing to its members and you can watch this timely 35-minute video focusing on prospects of the federal shutdown and its impact on the nation by political experts.
Harmful House State and Foreign Operations Appropriations Amendments Target the Arts
Two very harmful arts-related House floor amendments have been offered to the FY'24 State and Foreign Operations Appropriations bill being debated on the floor today. These amendments would make severe cuts to all arts and cultural diplomacy, embassy, and educational exchange programs at the U.S. Department of State. Americans for the Arts has reached out to Congressional offices encouraging them to vote NO on Amendment #145 offered by Rep. Tim Burchett (R-TN) that would zero-out all funding for the State Department’s highly effective diplomatic Art in Embassies program. We have also encouraged House members to vote NO on Amendment #133 offered by Rep. Andy Biggs (R-AZ) that would make a 10 percent cut to the cultural diplomacy and artist exchange programs in the Bureau of Educational and Cultural Affairs.
October is National Arts and Humanities Month
The White House will issue a proclamation by President Biden to proclaim the month of October as National Arts and Humanities Month on or before Sunday, October 1st. You can periodically check the White House website for when the proclamation is posted.
Register for the National Virtual Release of Americans for the Arts’ Arts and Economic Prosperity 6 Study on October 12th
Please join us Thursday, October 12 at 2:00 - 3:30 PM EST for the national release of Arts & Economic Prosperity 6 (AEP6), Americans for the Arts’ new and largest economic impact study of the nation’s nonprofit arts and culture organizations and its audiences. This free Zoom event will be hosted by legendary multi-award-winning actress, singer, dancer, and civil rights activist, Rita Moreno. Not only will you be the first to learn the highly anticipated national impact numbers, but you’ll also hear from arts partner communities, elected officials, artists, and national strategic partners about how and why this study is vital to the work they do in building stronger communities. Please register today.
Internal Revenue Service (IRS) Officially Pauses on Processing NEW Employee Retention Tax Credits (ERTC)
Due to a recent spike in fraudulent business applications for the ERTC, the IRS announced a temporary stop on processing NEW claims. The IRS is conducting an audit on paid-out ERTCs to collect funds through erroneous claims, set more stringent compliance criteria for processing existing claims, and create opportunities for current applicants to rescind their applications without penalty. While the IRS will continue processing existing claims, there will be a significant slowdown through December 2023. This slowdown will be exacerbated by a federal government shutdown.
Shuttered Venue Operators Grant (SVOG) Processing Close-Outs
The Small Business Administration (SBA) shared that it continues to process SVOG close-out applications and is beginning to process close-outs involving outside audits. The focus to date has been on first processing close-out grants for those grantees returning unspent SVOG funds followed by simple close-outs that don’t require an audit and were not subject to monitoring and review. If you received an SVOG award, please continue to check your SVOG portal for processing updates and action items to upload additional information. When in doubt, reach out to your SVOG Grants Management Specialist. Remember to retain all backup receipts and accounting for your grant for 3 years and 4 years for payroll information. For more information on close-out, please visit the SBA website. Please note that the SBA’s close-out work on processing SVOG applications will be delayed by a federal government shutdown.
Charitable Giving Update
We continue to work with our partners at the Charitable Giving Coalition (CGC) and Independent Sector to advance the Charitable Act through Congress. New polling data from Independent Sector show that the public overwhelmingly supports provisions in the Charitable Act which would expand the charitable deduction to up to $4500 for those who do not itemize on their federal income taxes. Stay tuned for calls to action to support the Charitable Act.
DOL Proposed Overtime Rule Changes
The U.S. Department of Labor has proposed changes to overtime compensation rules for executive, administrative, and professional workers by increasing current salary-level thresholds to qualify for exemptions. The DOL is accepting comments on the potential impacts of the proposed rules until November 7, 2023. Please contact us if you are interested in learning more.
Fix the Tix Coalition Update
We continue our work with artists, live venues, and fans to address the issue of an unchecked ticketing market that has been exploited by predatory resellers. We urge Congress to enact comprehensive legislation that safeguards consumers from fake tickets, price gouging, and other deceptive practices, provides transparency in ticket pricing, and restores integrity to the ticketing marketplace. Read more about the “Fix the Tix Plan.”
Arts Education Update
Thank you to those who attended our Arts in Education Webinar to celebrate National Arts in Education Week. We were thrilled to have Rep. Suzanne Bonamici (D-OR-1) speak to us live from the Floor of the House of Representatives on her way to introduce the Arts Education for All Act. Please ask your Member of Congress to co-sponsor this important piece of legislation.
Next Monthly Zoom Office Hours with Nina
Reminder that the next monthly Zoom Office Hours with Nina will be Friday, October 13, 2023, at 11:00am ET to discuss both COVID-financial relief updates, legislative updates, and other topical issues. To see all future dates, visit our website.