2026 Public Policy

Sector priorities, supporting documents, and legislator contact information

Federal Priorities:

  • Oppose Sweeping Proposed Changes to Federal Grantmaking: On May 29, 2026, the U.S. Office of Management and Budget proposed sweeping changes to federal grant rules that could create significant financial risk and instability for nonprofits, reduce transparency, and allow greater discretion to withhold or alter funding. If implemented, these changes could make federal funding less predictable, discourage participation from qualified organizations, and disrupt essential services—such as housing, health, education, and disaster recovery—particularly in underserved communities. Read more here.
  • Defending Nonprofit Nonpartisanship: For nearly 70 years, an important provision in the federal tax code Section 501(c)(3), sometimes called the Johnson Amendment, has provided that in exchange for tax-exempt status, a charitable nonprofit, foundation, or religious organization may “not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.” This language serves to protect charitable nonprofits, houses of worship, and foundations – and the donating public by ensuring organizations dedicated to the public good remain above the political fray. Nonprofits operate as safe havens from the caustic partisanship that is bedeviling our country, places where people can come together to solve community problems. Repeal or revision of the law would damage the integrity and effectiveness of all charitable nonprofits and foundations.  
  • Tax Reconciliation 3.0: KNN and the National Council of Nonprofits urge Congress to ensure any tax reconciliation bill protects charitable nonprofits and their ability to deliver essential services to communities nationwide. Despite this critical role, nonprofits face unprecedented challenges. Significant federal funding cuts and recent changes in tax policy that decrease charitable giving strain already tight budgets. Many nonprofits have cut services, reduced staff, and closed their doors.
  • Streamlining Federal Grants Act: Nonprofits are effective government partners, delivering vital services to local communities across the country. On January 28, 2026, Senators Gary Peters (D-MI) and James Lankford (R-OK) introduced the bipartisan Streamlining Federal Grants Act to help increase access to federal grants and resources so nonprofits – particularly those that are smaller, serving rural areas, or have limited resources – can continue to provide much-needed services in their communities. If enacted, the bill would improve the effectiveness and performance of federal grants and cooperative agreements, simplify application and reporting requirements, and facilitate greater coordination among federal agencies responsible for delivering services to the public.

Kentucky’s Federal Delegation Resources:

Take Action!

Oppose Sweeping Proposed Changes to Federal Grantmaking by July 13

Nonprofits Get it Done. Across the country, nonprofits step in where no one else can or will. But now, some policymakers are questioning the integrity of the sector, jeopardizing funding for vital services.

2026 Legislative Priorities:

House Bill 480
(Rep. Shawn McPherson – R, Scottsville)

Ensures proposed regulations to secure prompt payment on state contracts and grants with nonprofits, clear dispute resolutions processes, and more protections for nonprofits serving our communities are in KY law. Informational Handout

Click here to download our Government Grants/Contracting Checklist. Click here to share with us your government grants/contracting experience.

Watch the recording to learn how to take advantage of HB 480.

Became law without Governor’s signature

House Bill 647
(Rep. Shawn McPherson – R, Scottsville)

This legislation would update the state G.R.A.N.T. Program to increase possible project extensions, add eligible agencies, and extend program end date to December 31, 2028.

House Bill 500
(Rep. Jason Petrie – R, Elkton)

This is the main state/executive branch budget bill, providing funding and establishing conditions for the operations, maintenance, support, and functioning of the state government and its various officers, cabinets, departments, boards, commissions, institutions, subdivisions, agencies, and other state-supported activities.

House Bill 904
(Rep. Michael Meredith – R, Oakland)

Clarifies Kentucky law governing charitable gaming, including where electronic charity game tickets and pull-tab devices may be offered, updates licensing and enforcement processes, and shifts greater control of charitable gaming licenses to nonprofit organizations.

House Bill 576
(Rep. Robert Duvall – R, Bowling Green)

Establishes the Kentucky Talent Recruitment Grant Program under the Cabinet for Economic Development.

House Bill 101
(Rep. James Tipton – R, Taylorsville)

This legislation would amend KY law to exempt some purchases and sales made by qualifying “religious” institutions. KNN seeks to expand this legislation to ensure that amending KY law would exempt ALL charitable 501(c)(3) nonprofits.

KY General Assembly Resources: