Sponsors (3)
The bill shifts DOJ grant preference toward organizations with diversified funding to improve stewardship of federal dollars, but does so by cutting off or disrupting funding for grant-dependent nonprofits and adding compliance burdens that could reduce services to communities.
Nonprofits that do not rely on DOJ grants for more than 50% of their revenue retain eligibility for DOJ funding, preserving access for more diversified organizations.
Taxpayers and the federal government face reduced risk of concentrated dependency on DOJ funds because the provision increases oversight and discourages overreliance on a single funding source.
Nonprofits that rely on DOJ funding for the majority of their revenue would lose DOJ grants for a year, threatening program continuity and jobs at those organizations.
Communities served by smaller or specialized nonprofits could see reduced services or staff cuts if those organizations lose DOJ grant funding, harming beneficiaries of those programs.
Nonprofits and DOJ grant administrators must comply with an added certification requirement for each grant application, increasing paperwork and administrative burden.
Based on analysis of 2 sections of legislative text.
Disqualifies 501(c)(3) organizations from DOJ grants for a fiscal year if over 50% of their revenue came from DOJ grants and they paid an officer more than the Attorney General's salary.
Official title: To provide that a nonprofit organization that receives more than 50 percent of its revenue from grants awarded by the Department of Justice, and compensated an officer or employee in an amount that exceeds the annual salary authorized to be paid to the Attorney General, is ineligible to receive a Department of Justice grant, and for other purposes.
Introduced July 16, 2026 by Andrew S. Biggs · Last progress July 16, 2026
Prohibits certain tax-exempt charities from receiving Department of Justice (DOJ) grants for a fiscal year if they meet two tests: (1) more than half their revenue in their most recent taxable year came from DOJ grants, and (2) they paid an officer or employee more than the Attorney General's authorized annual salary. Applicants must certify eligibility when applying for DOJ grants. The bill defines "nonprofit" as organizations exempt under IRC section 501(c)(3) and sets the timing for measuring revenue and compensation.