Public Outcry Forces DeLay to Cancel Fundraiser

A charity associated with Rep. Tom DeLay (R-TX) has finally decided to pull the plug on its fundraiser that was to take place during the week of the Republican National Convention in New York. The cancellation came after numerous complaints were filed to the IRS and an outpouring of criticism was rehashed in most major U.S. newspapers.

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FEC Delays Political Committee Rulemaking for 90 Days

At its May 13 meeting the Federal Election Commission (FEC) approved a General Counsel recommendation to defer action on its political committee rulemaking for 90 days. The General Counsel said the FEC needed time to give the complex issues in the case more thorough consideration, saying "It is just as important not to drop the issue as to get it right." The move makes it unlikely any new rules will take effect this year. In response the House Administration Committee has scheduled a hearing for May 20.

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OMB Updates Guidance for Federal Grantees

As part of its effort to streamline the federal grants process, the Office of Management and Budget has published updated versions of its grants circulars that make definitions of key terms consistent for all types of grantees. The new Title 2 of the Code of Federal Regulations will centralize all policy guidance and rules for grants and cooperative agreements.

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Lawsuits Challenge Viewpoint Discrimination Against Nonprofit Public Communications

The American Civil Liberties Union (ACLU) filed two federal lawsuits aimed at protecting nonprofit speech.

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2 FEC Commissioners Propose Revised Rule on Political Committees

Two of the six Federal Election Commission’s (FEC) six Commissioners have proposed a scaled-down version of the controversial proposed rule extending federal campaign finance rules to independent organizations. The proposal, drafted by Commissioners Michael Toner (R) and Scott Thomas (D), excludes organizations exempt under Section 501(c) of the Internal Revenue Code and some Section 527 groups from regulation. However, it incorporates thresholds that are vague and leave exempted organizations open to similar regulatory restrictions in the future.

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HHS Bows to Political Pressure, Pulls Funding from Conference

On April 26, after an intensive campaign by conservative groups, Health and Human Services (HHS) pulled partial funding for the Global Health Council’s 31st annual conference. Conservatives objected to some of the topics and speakers in the June conference and claimed that federal dollars given to fund the event was being used to lobby. To ensure the government and others that federal dollars were not being used for lobbying, the conference sponsors segregated its lobbying component in a separate “pre-conference” day.

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Open Debates Calls for the Revocation of the Commission on Presidential Debates? Tax-Exempt Status

Open Debates, a coalition of reform groups, filed a complaint at the IRS last week asking that it revoke the tax-exempt status of the 501(c)(3) organization in charge of general election presidential debates.

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National Head Start Association Calls for Bureau Chief's Resignation

The National Head Start Association called for the resignation of U.S. Head Start Bureau chief, Windy Hill on April 13 after it unveiled findings from an unreleased Health and Human Services (HHS) review that revealed Hill was engaged in serious mishandling of federal grant money. The allegations were supported by an outside audit of the Head Start program in Texas Hill managed.

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FEC Holds Hearings on Proposed Rule After Receiving Record Number of Comments

After two days of public hearings with testimony from thirty witnesses and over 200,000 public comments received, the Federal Election Commission (FEC) was no closer to resolving the complicated issue of re-defining the reach of its regulation than it was when it published its proposed rule in March. The FEC is scheduled to make a final decision on the proposed rules in mid-May; however, some Commissioners have publicly commented that they may take additional time to consider the volume of comments they received before taking any further action.

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OMB Watch Testimony in 2004 FEC Rulemaking on 527s

On April 15, 2004 Kay Guinane of OMB Watch testified at the Federal Election Commission's public hearing on proposed rules extending FEC regulation. The testimony is below. More information on this issue is available at nonprofitadvocacy.org. FEC Testimony- Kay Guinane, OMB Watch April 15, 2004

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