THE ISSUE
501(c)(3) charitable organizations are limited in the amount of lobbying they may participate in under either the no "substantial part" test  or electing to operate under Section 501(h) of the tax code. Efforts by third party groups such as Cause of Action to contact CPPW grant recipients with threats of potential lawsuits, as well as unclear statutes adopted at the state level, may have a chilling effect on permissible lobbying by 501(c)(3) organizations. 

Labor-HHS Appropriations Restrictions

• December 23, 2012 -- An annual provision in the Labor-HHS appropriations bill that prohibits lobbying with federal funds by federal agencies, grantees, and contractors was expanded in the Consolidated Appropriations Act of 2012.  The expansion of the language is viewed as an attempt to address the possible use of federal grant money received through the Center for Disease Control's (CDC) Communities Putting Prevention to Work (CPPW) grant program to lobby state and local officials.
• March 1, 2012 -- HHS Secretary Kathleen Sebelius testified before the House Energy and Commerce Committee's Subcommittee on Health on the President's proposed Fiscal Year 2013 budget. In response to an inquiry about grantees using federal money to lobby, following the passage of new and expanded language in the Consolidated Appropriations Act of 2012 addressing the issue, she said that directives would be administered to grantees to comply with the new language. She also indicated that "no new prevention grants have been issued under this new language" and that "a prohibition for grantees to lobby at the local or the state level is now an additional piece of law that was not part of the underlying statute."
• March 5, 2012 -- Representatives Ed Whitfield (R-KY) and Brett Guthrie (R-KY) sent a letter to Department of Health and Human Services, HHS Secretary Kathleen Sebelius urging an investigation into whether Center for Disease Control (CDC) grantees have used federal tax dollars for lobbying activity.
• July 10, 2012 -- The Inspector General at the Health and Human Services Department stated in an "early alert" letter to the Director of the CDC that federal healthcare grant money may have been improperly used for lobbying efforts and that the CDC may have led recipients to believe it was appropriate.

State of Kansas Restrictions

• May 29, 2012 -- The Kansas Department of Social and Rehabilitation Services is adding new language to its contracts with service providers in the upcoming fiscal year to tighten restrictions on contractors and grant recipients using state or federal funding to influence legislation. The language reads:

"No funds allowed under this agreement may be expended by the recipient of the grant to pay, directly or indirectly, any person for influencing or attempting to influence an officer or employee of any agency, a member, or employee of a member of the United States Congress or the Kansas Legislature.” Read more