The Honorable Christopher S. Bond
Chairman
Senate Appropriations Subcommittee on VA-HUD and Independent Agencies
127 Dirksen Senate Office Building
Washington, D.C. 20510

Dear Chairman Bond:

We are writing to advise you of our concerns about three provisions in the Senate VA-HUD appropriations bill (S. 1596). The provisions which alarm us are the Administrative Provision under Title III and Sections 425 and 430 of Title IV. These provisions would excessively restrict nonprofits' abilities to exercise their First Amendment rights to advocacy and litigation. Current law already restricts nonprofits' use of federal funds for lobbying and litigation, and further restrictions are unnecessary and undesirable.

We are writing as co-chairs of the Let America Speak coalition, which is comprised of thousands of charities from around the country who share an interest in the ability of nonprofits to be engaged in the public policy process. We strongly believe that organizations receiving federal funds should comply with existing terms and conditions associated with grants and contacts, including restrictions on lobbying and litigation contained in OMB Circular A-122, which are sufficient to prevent any abuse of federal funds.

We have attached our latest analysis of the provisions in the appropriations bill. It is informed by the comments from charities from around the country, who are troubled by the provisions. We are concerned that the proposed expansion of lobbying and litigation restrictions are excessive, the requirement to create separate bank accounts burdensome and costly, the 5-year blacklist on receiving federal funds unfair, and the Section 430 provision to limit grantee activities unclear and potentially quite harmful.

We strongly urge you to make these provisions conform to the current legal and regulatory scheme that applies to lobbying and litigation activities carried on by recipients of federal funds.

Sincerely,

Nan Aron, Executive Director, Alliance for Justice
Matthew W. Hamill, Vice President, Public Policy, Independent Sector
Gary D. Bass, Executive Director, OMB Watch