The New Congress  Brings New Agenda for Nonprofits

Here is some of what the nonprofit world can expect from the new Congress.

Federal aid: Republicans, who now control the House and gained seats in the Senate, will take a hard line on spending, especially given pressure from the small-government Tea Part. This will be bad news for safety-net programs and programs that President Obama hoped to expand, like AmeriCorps; the Social Innovation Fund, which provides grants for promising nonprofit projects; and Promise Neighborhoods, which provides money for antipoverty projects modeled after Harlem Children Zone. 

Scrutiny of nonprofits: Senator Charles E. Grassley, the Iowa Republican who has led a steady stream of investigations into alleged nonprofit abuses as chairman and then senior Republican on the Senate Finance Committee, is expected to move to the top Republican post on the Senate Judiciary Committee. Some observers expect his successor, Senator Hatch (R –UT) to be less interested in nonprofit investigations. He is also more sympathetic than many other Republicans to national-service programs. 

Charity oversight: With control of House oversight committees, Republican will be able to call hearings over controversies involving nonprofit groups or social programs that draw their suspicion.