Three campaign finance reform groups have filed a new complaint at the Federal Election Commission (FEC) against an independent political committee, America Coming Together (ACT), alleging violation of FEC rules on what activities must be paid for with hard money. Hard money refers to funds raised subject to the limitations of federal campaign finance regulations, which prohibit corporate donations and individual donations over $5,000. ACT has used soft money to pay for direct mailings urging voters to defeat President Bush and elect progressive candidates all across the country.

On June 21 the Senate Finance Committee published a Staff Discussion Draft of Proposals for Reforms in the Tax-Exempt Accounting and Best Practices that is "based on staff investigations and research as well as proposals from practitioners." The document notes that specific proposals are meant to generate comments and additional suggestions "as the Finance Committee continues to consider possible legislation." It focuses on changes for nonprofits, while other legislative proposals focus on deductibility issues and abuses by donors.

The House Ways and Means Committee has dropped a provision (Section 692) that would have allowed religious organizations to violate the tax code's ban on partisan election activity up to three times a year without losing their tax-exempt status. At a June 14 review of HR 4520 Rep. Nancy Johnson (R-CT) offered an amendment stripping Section 692 from the bill. She was supported by Reps. Amo Houghton (R-NY), John Lewis (D-GA), Charles Rangel (D-NY) and others. Her amendment was approved on a voice vote.

Minnesota's state employee relations commissioner has made a decision not to allow any advocacy oriented organizations to participate in the annual state employee deduction charity drive.