Rep. John Garamendi Reacts to Trump’s Joint Address

Source: United States House of Representatives – Congressman John Garamendi – Representing California’s 3rd Congressional District

WASHINGTON, DC—Today, U.S. Representative John Garamendi (D-CA-08) released the following statement following President Donald Trump’s joint address to Congress:    

“The other night, Donald Trump showed the American people that we are going down a dangerous path under his leadership. In a little over a month as president, Donald Trump has diminished our country’s standing in the world, hurt our economy with an unnecessary and insensible trade war with our allies, created a constitutional crisis with DOGE-led firings of civil servants and dismantling of agencies, and so much more. Let me be clear: Trump’s actions will increase costs for working Americans. It is horrifying to watch Republicans in Congress applaud Trump and Musk’s illegal, unconstitutional, and unhinged actions that are only hurting hardworking Americans.    

“Sadly, Trump and Musk’s illegal executive actions are just the start. Last week, nearly every Republican in Congress voted to pass the starting point for Trump’s legislative agenda. This scheme would take away our core government services by giving tax breaks to billionaire donors like Elon Musk. This would mean cuts to Medicaid, undermining veterans’ benefits, and stealing food from needy children and seniors. The House Republican budget scheme makes everyday Americans sicker and poorer. It will force even more middle-class families to live paycheck to paycheck while making the wealthiest Americans even richer.   

“House Democrats have a different vision. We will work every single day to provide opportunities for working Americans to succeed and pay for services by making the ultra-wealthy pay their fair share. We will remain steadfast in defending what is right and resist these dangerous and immoral actions at every stage. I pledge never to stop fighting to protect our allies, the rule of law, the American people, and our democracy. America has four more years with President Trump, and we must fight every single day to protect the values that have sustained our country for over two centuries. We are in a historically dangerous and significant time- it’s time we all start acting like it.”  

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Garamendi Statement on Trump’s Meeting with Ukrainian President Zelenskyy

Source: United States House of Representatives – Congressman John Garamendi – Representing California’s 3rd Congressional District

WASHINGTON, DC— Today, U.S. Representative John Garamendi (D-CA-08), a senior member of the House Armed Services Committee and Ranking Member of the Readiness Subcommittee, released the following statement regarding Donald Trump’s meeting with Ukrainian President Volodymyr Zelenskyy:

“Today, the President of the United States further aligned himself with Vladimir Putin, the known enemy of the United States. That alone is shocking, but Trump went further – berating Ukrainian President Zelenskyy, whose country was invaded by Russia in a war that has taken the lives of tens of thousands of Ukrainian soldiers, civilians, and children. This is a shocking new low to turn our back on an ally when they need our support. President Donald Trump not only blamed President Zelenskyy for Russia’s brutal invasion but also refused to retract his disgraceful comment calling Zelenskyy a ‘dictator.’   

“I have worked with every president since President Jimmy Carter, and I have never had any president so disgracefully abandon an ally and take the enemy’s side. It’s disgraceful and creates an extraordinarily dangerous situation in Europe.  

“President Trump has previously said that he’d be a dictator on “day one,” so it is no surprise that our wannabe dictator would try to cozy up to another dictator. Since World War 2, America has led the world in establishing a world order based on democracy and respect for international boundaries. President Trump and Vice President Vance have abandoned those rock-solid principles by aligning themselves with Russia and Putin, who has made it clear that he is going to reestablish the Soviet Union empire.  

At the end of this appalling display, the President and Vice President Trump said it would be ‘good TV.’ It is a tragedy and appalling display of the dereliction of duty to see the president of the United States abandon its role as a defender of democracy. We must remain steadfast in defending what is right. I and Congressional Democrats will never stop supporting our ally Ukraine in their fight to defend themselves against unprovoked aggression. The onus is now on Republicans. Will they do the same, or will they continue to bow to Trump’s disgraceful abandonment not only to an ally but our most basic principles?” said Rep. John Garamendi (D-CA-08).

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Garamendi Statement on Trump’s Friday Night Massacre of U.S. Military Leadership

Source: United States House of Representatives – Congressman John Garamendi – Representing California’s 3rd Congressional District

WASHINGTON, DC— Recently, U.S. Representative John Garamendi (D-CA-08), a senior member of the House Armed Services Committee and Ranking Member of the Readiness Subcommittee, released the following statement regarding Donald Trump’s purge of military leadership: 

“Last night, President Donald Trump and Secretary of Defense Pete Hegseth unleashed more chaos and confusion with the firing of Joint Chiefs Chairman Gen. Charles Q. Brown, Jr, Chief of Naval Operations Adm. Lisa Franchetti, Vice Chief of Staff of the U.S. Air Force Gen. James Slife, and several Judge Advocate Generals.

These firings are not only unprecedented, but they also follow a disturbing partisan pattern that this administration has taken since the inauguration of firing the most qualified and dedicated military and civilian leaders solely to install MAGA loyalists. Trump’s purge began with Coast Guard Admiral Linda Fagan, who, despite her distinguished record throughout her 36 years of service to our country, was unceremoniously removed and later given only three hours’ notice to leave her home.  

It is hypocritical that the administration that claimed politics were tearing our military apart is now engaged in a massive political purge of the most senior, experienced, battle-tested, and professional leaders in the military solely because of identity politics.  

The reason why Gen. Brown, Gen. Slife, Adm. Franchetti, and Adm. Fagan rose to the most senior positions of leadership because of their competence, intelligence, and ability to create and lead a cohesive fighting force.

The purge of competent, experienced, and capable military leaders puts our national security at risk, and unfortunately, the President is enabled and, indeed, encouraged by timid Republicans in Congress who know better.

As a senior member of the House Armed Services Committee, I have worked with these incredibly competent and experienced leaders, and I know their wisdom and leadership will be missed and that the readiness of the military will be compromised.” said Rep. John Garamendi (D-CA-08). 

 

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Garamendi Sends Letter to Pentagon Demanding Answers for Sending Military Medical Personnel to Guantánamo Bay

Source: United States House of Representatives – Congressman John Garamendi – Representing California’s 3rd Congressional District

WASHINGTON, DC— Today, U.S. Representative John Garamendi (D-CA-08), a senior member of the House Armed Services Committee and Ranking Member of the Readiness Subcommittee, released the following statement regarding his letter sent to the Secretary of Defense Pete Hegseth: 

“First, it was Trump’s use of military aircraft to enforce his immigration policy that was alarming and potentially unconstitutional. Now, the military is preparing to send trained medical professionals to the Guantanamo detention facility.   

The primary mission of our military medical personnel is to support the health and well-being of our servicemembers and their families. Diverting these medical professionals away from their normal duties and regular patients hampers their ability to provide medical care to our warfighters and their dependents.  

While migrants detained at Guantanamo Bay undeniably deserve comprehensive medical care throughout their detainment, it is unacceptable that military resources be diverted to fulfill this need. The American people deserve answers about how the Department of Defense is using their tax dollars for President Donald Trump’s mass deportation agenda. Donald Trump is dragging us down this very dark path, and the American people must not accept this.” said Rep. John Garamendi (D-CA-08). 

The Office of Rep. John Garamendi sent this letter weeks after demanding answers from the Department of Defense over their use of C-17s and C-130s to deport undocumented immigrations as a direct consequence of President Donald Trump’s Executive Order.   

You can read the full text of the letter HERE.   

Federal, State and Local California Leaders Release Joint Statement on the Martinez Refinery Fire

Source: United States House of Representatives – Congressman John Garamendi – Representing California’s 3rd Congressional District

WASHINGTON, DC— On Saturday, a hydrocarbon material leak at the Martinez Refining Company caused a fire that injured six individuals and triggered a health advisory. In response to this ongoing situation, U.S. Representatives John Garamendi (D-CA-08) and Mark DeSaulnier (D-CA-10), California State Senator Tim Grayson, Martinez Mayor Brianne Zorn, and Contra Costa County Supervisor Shanelle Scales-Preston released the following statement: 

“My heart goes out to the Martinez Refinery workers and anyone else who has been affected by this horrific fire.” said Rep. Garamendi (D-CA-08) “The Martinez Refinery has a history of concerns regarding safety, and last week we saw the results. While we are still gathering information about the cause of this fire, what we do know is that this disaster reflects poor leadership and a lack of standards from the Martinez Refining Company. Our community deserves answers and I along I will continue to work with our local leaders to get those answers and hold the Martinez Refining Company responsible.”

“Having had 30 years of dealing with the oil industry, it is past time for every federal, state, and local regulatory agency with jurisdiction over the Martinez Refining Company to act aggressively with all the statutory authority they have to hold the refinery accountable,” said Rep. Mark DeSaulnier. “I am working with Congressman Garamendi to ensure this happens. Without more aggressive oversight it is not a question of whether deaths will occur, but when given the company’s disregard for safety.”

“The health and safety of our community remains my top priority, and I am thankful to our firefighters and mutual aid responders who worked to contain the fire at the Martinez Refining Company,” said Senator Tim Grayson (D-Concord). “As the ensuing investigation takes place over the coming days, I will support transparency and accuracy surrounding the facts of what took place, leading to accountability. The central priority throughout this investigation will remain the safety of our community and our workers.”

“I want to thank the County HazMat teams, County Health teams, the Contra Costa Fire Protection District, and the Martinez Police Department, who worked with the refinery to respond to this emergency,” said Martinez Mayor Brianne Zorn. “This most recent incident, just one in a long string of issues, highlights the need to keep the people of Martinez, and the entire County, safe. I am asking Contra Costa Health for additional information so that our residents can fully understand what impacts the fire may have had on their families’ health. I am relieved that this major fire resulted in only minor injuries for the six workers. We will work with the County to hold the refinery to a higher standard for their workers’ safety and also to reduce the health risk the refinery continues to pose to our community.”

“I understand the frustration, fear, and anger experienced by Martinez residents in the wake of Saturday’s fire at the Martinez Refining Company,” said Contra Costa County Supervisor Shanelle Scales-Preston. “This is the third major incident since PBF Energy purchased the refinery in 2020 and many more spills and releases have occurred since then. This is not acceptable, and I am working to get answers for our community. “Currently, the County, and other regulatory agencies, will conduct an independent investigation into what caused the fire, what violations may have occurred, what potential environmental hazards linger, and what are necessary improvements needed to ensure public and worker safety and health. In addition, I am requesting a Full Facility Audit under the provisions of the County’s Industrial Safety Ordinance.”

 

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RELEASE: KHANNA INVITES MARIE BERNARD TO STATE OF THE UNION AS VIRTUAL GUEST

Source: United States House of Representatives – Rep Ro Khanna (CA-17)

Washington, DC – Today, Rep. Ro Khanna (D-CA) announced that he has invited Marie Bernard, Executive Director of Sunnyvale Community Services, as his virtual guest to President Biden’s State of the Union Address.

While holding the Address safely this year means that in-person attendance is limited, Rep. Khanna has invited Marie as his virtual guest to celebrate the incredible work she is doing to prevent homelessness and hunger in CA-17.

“Access to affordable housing and nutritious food continue to be top priorities for constituents in CA-17 and Americans across the country. As Executive Director of Sunnyvale Community Services, Marie has been a relentless advocate for our local community and improved the quality of life for countless individuals and families struggling with homelessness.

With Marie at the helm, Sunnyvale Community Services helps over 10,000 clients each year with basic needs, including rental assistance, healthy foods, case management services, and referrals to benefits. The organization goes above and beyond for everyone it serves, supplying low-income families with school supplies as well as food and gift cards during the holiday season. They truly are a hub for safety net services in Silicon Valley. I was thrilled to get to visit the new facility recently, which will help vastly expand capacity and assist more people.

I thank Marie and all the employees at Sunnyvale Community Services for their hard work and dedication. I look forward to hearing President Biden’s goals for the coming year on affordable housing and a range of other issues. Housing is a basic human and economic right and Congress must find ways to help everyone secure safe and affordable housing.”

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About the Office

Congressman Khanna represents the 17th District of California, which covers communities in Silicon Valley. Visit his website at khanna.house.gov. Follow him on Facebook, Instagram and Twitter @RepRoKhanna.

RELEASE: AS PUTIN’S ILLEGAL INVASION OF UKRAINE CAUSES GAS PRICES TO RISE, REED, KHANNA, COLLEAGUES URGE BIDEN ADMINISTRATION TO TAP STRATEGIC PETROLEUM RESERVE

Source: United States House of Representatives – Rep Ro Khanna (CA-17)

Washington, DC February 24, 2022 In an effort to combat a sharp rise in oil prices amid Vladimir Putin’s illegal invasion of Ukraine, U.S. Senator Jack Reed (D-RI) and U.S. Representative Ro Khanna (D-CA) led a bicameral letter to President Biden urging the White House to stabilize gas prices and help working families by releasing oil from the Strategic Petroleum Reserve (SPR). Drawing down oil from the federal government’s stockpile now and then replacing it later with less expensive crude could help temporarily keep gas prices down for Americans, strengthen U.S. national security, and be a good deal for taxpayers.

“As Russia’s invasion of Ukraine continues to cause volatility in the global oil market, we are writing to urge you to consider using all of the tools at your disposal to insulate Americans from rising gasoline prices. This includes an additional release from the Strategic Petroleum Reserve, the use of diplomatic pressure to encourage global oil producers to ramp up their output, and restrictions on petroleum exports unless they will advance our national security goals and lower prices for consumers,” the 10 members of Congress wrote.

In addition to Reed and Khanna, the letter is also signed by U.S. Senators Patrick Leahy (D-VT), Richard Blumenthal (D-CT), Ron Wyden (D-OR), Raphael Warnock (D-GA), Chris Van Hollen (D-MD), Maggie Hassan (D-NH), Tammy Baldwin (D-WI), and Sherrod Brown (D-OH).

The Strategic Petroleum Reserve is an emergency stockpile of petroleum maintained by the U.S. Department of Energy (DOE). It is the largest known emergency supply of oil in the world, and its underground salt domes in Louisiana and Texas has an authorized capacity for approximately 714 million barrels.

According to DOE, the average price paid for oil in the Strategic Petroleum Reserve – $29.70 per barrel. Today, gas prices surged to over $100 per barrel for the first time since 2014.

In November, President Biden ordered the release of 50 million barrels of oil from the Strategic Petroleum Reserve to deal with surging gasoline prices in the U.S. which appeared to put a temporary damper on them.

Crude oil prices represent the biggest factor in terms of the prices that consumers pay at the gas pump. But the cost of refining, distribution expenses, taxes, and rent for the gas station also influence the price at the pump.

Full text of the letter follows:

February 24, 2022

President Joseph R. Biden

The White House

1600 Pennsylvania Avenue, N.W.

Washington, D.C. 20500

Dear President Biden:

As Russia’s invasion of Ukraine continues to cause volatility in the global oil market, we are writing to urge you to consider using all of the tools at your disposal to insulate Americans from rising gasoline prices. This includes an additional release from the Strategic Petroleum Reserve, the use of diplomatic pressure to encourage global oil producers to ramp up their output, and restrictions on petroleum exports unless they will advance our national security goals and lower prices for consumers.

We appreciate your decision last November to release 50 million barrels of oil from the Strategic Petroleum Reserve and to coordinate that effort with similar releases by our allies. We believe the current moment calls for another release to help lower gasoline costs for struggling American families and businesses.

Due to the pandemic, oil speculators, and worldwide energy price spikes, Americans consumers are paying $1 more at the pump than a year ago. Families are having to choose between filling up their cars and putting food on their kitchen tables. In our home states, high gasoline prices are hurting families and small businesses still trying to dig themselves out of the economic fallout of the pandemic. Meanwhile, the major oil companies are pocketing their highest profits in years, and they are using those profits to issue higher dividends and buy back stock. We support your pledge to “closely [monitor] energy supplies for any disruption” and echo your words of caution that “American oil and gas companies should not exploit this moment to hike their prices to raise profits.”

Similarly, international oil producers rely on the United States for their security, yet are lining up with Russia in setting production targets. At a time when American consumers are suffering because of Russia’s actions, we should insist that our international partners do more to increase production and stabilize prices.

Finally, at a time of significant unrest, we should be judicious in allowing the export of domestically produced petroleum. Today, total U.S. production of petroleum liquids roughly matches domestic consumption. Indeed, the Department of Energy projects that the U.S. will reach its highest level of crude oil production by next year and that net exports of petroleum product will reach new highs this year. We should leverage that capacity to ensure that consumers at home are protected and that our global partners have access to supply no matter what actions Russia takes.

We know that in the long-term, eliminating U.S. dependence on oil will provide the stability we need to keep energy costs low for American households. To that end, we were proud to support the Infrastructure Investment and Jobs Act, championed by your administration, which will invest $7.5 billion to build out a national network of electric vehicle chargers and $90 billion to improve public transit systems, including funding for electric buses. We also believe now is the time to enact your clean energy plan to fight climate change and further insulate Americans from exogenous energy shocks.

Yet, as states work to implement transformative changes to our transportation system, Americans will feel increased pain at the pump in the short-term due to Russia’s actions in Ukraine. We believe the current moment calls for the Administration to use all its options to help insulate American households from price spikes being exacerbated by events far from home.

Thank you for your continued leadership on this important issue.

Sincerely,

STATEMENT: KHANNA ON THE INVASION OF UKRAINE

Source: United States House of Representatives – Rep Ro Khanna (CA-17)

Washington, DC – Rep. Ro Khanna (CA-17) issued the following statement on Russia’s invasion of Ukraine:

“President Putin’s invasion of Ukraine is a blatant violation of international law. He is responsible for the death and destruction that will continue so long as he continues this assault on global peace and security. My heart is with the people of Ukraine who did not want this violence and have done nothing to deserve it. Many innocent civilians are suffering because of Putin’s illegal actions.

At the Munich Security Conference, the United States, Ukraine, and our allies reaffirmed our commitment to defend Ukraine’s sovereignty. We are united against Putin and his oligarchs and I support the severe and immediate sanctions President Biden announced today to isolate Russia from the global financial system.

We also must welcome Ukrainian asylum seekers into the US and help Ukrainian refugees around the world who are fleeing this war as Putin’s invasion unleashes mass suffering throughout the region. This is a dark moment in history, but the people of Ukraine are not alone.”

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About the Office

Congressman Khanna represents the 17th District of California, which covers communities in Silicon Valley. Visit his website at khanna.house.gov. Follow him on Facebook, Instagram and Twitter @RepRoKhanna.

RELEASE: KHANNA JOINS PELOSI, COLLEAGUES ON CONGRESSIONAL DELEGATION TO ISRAEL, GERMANY, UNITED KINGDOM

Source: United States House of Representatives – Rep Ro Khanna (CA-17)

Jerusalem – Rep. Ro Khanna (CA-17) joined Speaker Nancy Pelosi today on a Congressional delegation to Israel, Germany and the United Kingdom to focus on security, economy and governance.

“As threats to democracy grow more alarming and urgent, American leadership remains committed to advancing security and stability, economic prosperity and democratic governance around the world,” Speaker Nancy Pelosi said. “Our first stop will be in Israel, recognizing our shared democratic values and mutual security. We will meet with the leadership of Israel and leaders in the civic community to discuss the prospects for a two-state solution and regional security. At the Munich Security Conference, our delegation will reaffirm America’s ironclad commitment to the transatlantic partnership, especially in the face of worldwide challenges to democracy and the rise of autocratic threats. In London, our delegation will deepen our interparliamentary dialogue on how we can continue to work together to counter antidemocratic forces and advance our shared values and interests in the global arena.

“As Speaker, I am proud to lead a Congressional delegation with the Chairs of significant committees and subcommittees of jurisdiction and on the subjects that are the focus of our visit. We look forward to an informative and productive trip.”

The Members of the delegation are:

  • Speaker Nancy Pelosi
  • Congressman Ro Khanna, Chair of the Environmental Subcommittee of the House Committee on Oversight and Reform; House Armed Services Committee; House Agriculture Committee
  • Chairman Adam Smith, House Armed Services Committee
    • Chairman Smith will travel to Germany and the United Kingdom
  • Chairman Adam Schiff, House Permanent Select Committee on Intelligence
  • Chairman Ted Deutch, Chair of Middle East, North Africa, and Global Counterterrorism Subcommittee of the House Foreign Affairs Committee; House Judiciary Committee; House Ethics Committee
    • Chairman Deutch will travel to Israel and Germany
  • Congresswoman Barbara Lee, Chair of State, Foreign Operations, and Related Programs Subcommittee of the House Appropriations Committee; House Budget Committee
  • Congresswoman Betty McCollum, Chair of Defense Subcommittee of the House Appropriations Committee
    • Congresswoman McCollum will travel to Germany
  • Congressman Jim Himes, Chair of the House Select Committee on Economic Disparity and Fairness in Growth; Chair of the National Security, International Development and Monetary Policy Subcommittee of the House Financial Services Committee; House Permanent Select Committee on Intelligence
    • Congressman Himes will travel to Germany and the United Kingdom
  • Congressman Bill Keating, Chair of the Europe, Eurasia, Energy and Environment Subcommittee of the House Foreign Affairs Committee; House Armed Services Committee
  • Congressman Sean Patrick Maloney, House Permanent Select Committee on Intelligence; House Transportation and Infrastructure Committee; House Agriculture Committee
    • Congressman Maloney will travel to Germany and the United Kingdom
  • Congressman Eric Swalwell, Chair of the Intelligence Modernization and Readiness Subcommittee of the House Permanent Select Committee on Intelligence; House Homeland Security Committee; House Judiciary Committee
  • Congressman Ruben Gallego, Chair of the Intelligence and Special Operations Subcommittee of House Armed Services Committee; House Veterans’ Affairs Committee; House Natural Resources Committee
    • Congressman Gallego will travel to Germany
  • Congressman Seth Moulton, House Armed Services Committee; House Budget Committee; House Committee on Transportation and Infrastructure
    • Congressman Moulton will travel to Germany
  • Congressman Andy Kim, House Armed Services Committee; House Foreign Affairs Committee; House Small Business Committee

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About the Office

Congressman Khanna represents the 17th District of California, which covers communities in Silicon Valley. Visit his website at khanna.house.gov. Follow him on Facebook, Instagram and Twitter @RepRoKhanna.

KHANNA, PINGREE, REED SPONSOR BIPARTISAN BILL TO ENSURE CHARITABLE DONATIONS REACH WORKING CHARITIES

Source: United States House of Representatives – Rep Ro Khanna (CA-17)

Washington, DC— February 3, 2022 — Representatives Ro Khanna (D-CA), Chellie Pingree (D-ME) and Tom Reed (R-NY) introduced the bipartisan, bicameral Accelerating Charitable Efforts (ACE) Act with Congresswoman Katie Porter (D-CA) to reform federal law to ensure funds donated to donor-advised funds (DAFs) are made available to working charities within a reasonable period of time and provide incentives to speed up donation timelines. The bicameral legislation, introduced in the Senate by Angus King (I-ME) and Chuck Grassley (R-IA), would also update regulations for private foundations to fulfill their intended purpose of ensuring a regular flow of dollars to working charities.

“Charities play an essential role in society and have been a lifeline for many people struggling during the pandemic. However, loopholes in our current laws allow the ultra-wealthy to make contributions and receive immediate tax benefits without any distribution requirements. The result is that money promised to charity can sit unused for years,” said Rep. Khanna. “This bill would reform our tax laws to make sure donations are quickly given out to charities, so that more Americans receive the services and support they need.”

“The coronavirus pandemic highlighted just how important working charities are to our communities. For countless Mainers and people across the country, charitable organizations are life-changing and lifesaving. Yet, $1 out of every $8 donated to U.S. charities goes to donor-advised funds, giving the wealthy generous tax breaks for their charitable contributions but not ensuring those funds help anyone in need. Our half-century old philanthropy laws must be reformed to correct this fundamental flaw in our current system,” said Rep. Pingree. “I’m proud to sponsor this bipartisan legislation with Representative Reed as a companion to Senators King and Grassley’s bill to ensure charitable donations effectively and efficiently do what they are intended to: help those in our communities who need it most.”

“We will always stand with charitable organizations to make sure they have the resources that they need to better serve our communities. So many people depend on our charities and the help and care they provide that we want to make sure that they have the support that they need,” said Rep. Reed. “We were glad to join in this bipartisan effort to help charities receive the funds that they so rightfully deserve. The reforms from this bill will make sure that charities will quickly receive contributions that will go to better the organization and those in the community they are dedicated to serving.”

Donor-advised funds (DAFs) currently have more than $140 billion set aside for future charitable gifts – but under current tax laws, the funds have no requirement to ever distribute these resources to working charities. Accordingly, DAFs can accept and hold charitable donations that have generated a federal income tax deduction, but never devote the resources to charitable work. The ACE Act will address this problem and speed the provision of money to working charities by reforming existing DAF rules with two new types of DAFs:

  • 15-year DAFs: The bill will create a new form of DAF under which a donor would get upfront tax benefits (as under current law), but only if DAF funds are distributed (or advisory privileges are released) within 15 years of the donation. To avoid overvaluations, the income tax deduction for complex assets – such as closely-held or restricted stock – would be the amount of cash made available in DAF accounts as a result of the sale of the asset (instead of the appraised value).
  • 50-Year DAFs: As an alternative, donors who want more than 15 years to distribute their DAF funds will be allowed to elect an “aligned benefit rule.” Under this rule, a DAF donor would continue to receive capital gains and estate tax benefits upon donation, but would not receive the income tax deduction until the donated funds are distributed to the charitable recipient. All funds would be required to be distributed outright to charities no later than 50 years after their donation.

America’s community foundations will receive certain exemptions under this bill to support their place-based, mission-driven work; specifically, the ACE Act will allow any donor to hold up to $1 million in DAF funds at any community foundation without being subject to payout rules. For amounts over $1 million, a donor still can receive up-front tax benefits if the DAF requires a five percent annual payout or if donations must be distributed within 15 years of contribution. The legislation will also reform existing rules governing private foundations, ensuring that these entities cannot meet payout obligations through salaries or travel expenses to a donor’s family members, or through distributions to DAFs.

“The pandemic has been a powerful reminder of how important charities are to our communities,” said Congresswoman Porter. “The tax code incentivizes charitable giving, but a loophole allows donor-advised funds to hold onto donors’ dollars, granting donors a tax break without actually distributing funds to charities that do the work of helping families. I’m proud to join my colleagues in introducing this bipartisan legislation that will increase accountability and help get charities the resources they need to serve our communities.”

“America’s philanthropic sector is an unquestioned force for good across the globe, investing critically-needed resources in charities working to improve life for those in need,” said Sen. King. “These benefits are why the federal government offers tax incentives to Americans who give back – but in order to ensure that these funds are doing the most possible good, we must reform the rules that govern some charitable donations. Under current rules, donor-advised funds and private foundations allow some to receive tax breaks for donations that never actually reach working charities. I’m grateful that Representatives Pingree and Reed are leading the bipartisan fight in the House to clear up those gray areas, and ensure that charitable contributions will swiftly reach the worthy organizations doing good in our communities.”

“Working charities do so much good in our country and abroad, and they operate on the good will and donations of those who can give. That’s why our tax code encourages giving to charity,” said Sen. Grassley. “But charitable dollars ought to be doing the good they were intended for, not sitting stagnant to provide tax advantages for some and management fees for others. The reform measures we are putting forward will ensure that the incentives for charitable giving actually result in money going to charities. I appreciate Rep. Pingree’s leadership on this effort in the House, and I hope more of our colleagues, from both sides of the aisle, will continue to join us.”

“Over the past two years of this pandemic, charities in Maine and across the country have stepped up in numerous ways to fill critical gaps in services and support their communities. And yet, while these organizations impact so many lives, thousands are at risk of closing. In the nearly 50 years since our opening, we’ve seen the impact that every donation can make on a person in need,” Mark Swann, Executive Director of Preble Street. “Establishing charitable giving laws that prioritize giving in a timely manner means more resources and help for Americans in need. We are grateful to Congresswoman Chellie Pingree and her cosponsors for their leadership in introducing legislation that strengthens and invests in America’s charitable organizations. I urge Congress to swiftly pass the Accelerating Charitable Efforts (ACE) Act.”

“RTA helps people in prison develop critical life skills through the arts. When released, less than 5% of RTA participants return to prison compared to the national recidivism rate of 60%. Having received the majority of its funding from private foundations and individuals, RTA supports the ACE Act that allows money to move out of the foundations and donor-advised funds faster. We thank Representatives Chellie Pingree and Tom Reed for their leadership, and hope these reforms will support RTA and non-profits like us to address the urgency of reducing mass incarceration and create lasting change within our communities,” said Katherine Vockins, Founder and Executive Director of Rehabilitation Through the Arts.

The full legislative text for the ACE Act can be read here.

Click here to watch a video explaining the benefits of the ACE Act.

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