05/29/2025

Senate Expected to Change House-passed Tax Bill

The bill passed the House last week along party lines

When Congress returns from recess next week, the Senate is expected to take up the sweeping reconciliation bill recently passed by the House of Representatives.

Thanks to the strong advocacy efforts of the Community Impact Coalition (CIC), of which OSAP is a member, and associations nationwide, including the Association Societies Alliance, of which OSAP President & CEO Jarrod A. Clabaugh, CAE is immediate past-chair, some of the most concerning tax provisions were successfully kept out of the House-passed bill. A major win was the removal of a proposed tax on income derived from association names and logos — a harmful measure that would have undermined critical non-dues revenue streams for many nonprofits.

However, the bill still includes a provision that ASAE and the CIC strongly oppose: it would treat certain transportation-related fringe benefits — such as parking — as taxable income for associations.

• To push back on this, ASAE and the CIC have circulated a sign-on letter for associations wishing to express their opposition.
• The deadline to sign is June 2, 2025.

While House Speaker Mike Johnson (R-LA) has urged the Senate to make minimal changes to the bill, President Trump indicated on Sunday that he anticipates “fairly significant” revisions. Senate Majority Leader John Thune (R-SD) will be tasked with balancing Republican priorities in the Senate without altering the bill so drastically that it jeopardizes its chances of passing again in the House.

What's next: Potential Senate changes may focus on Medicaid funding levels; the permanence of certain tax breaks; expanding the state and local tax (SALT) deduction; and pursuing deeper spending cuts than those proposed in the House version.