Unlocking Low-Income Taxpayer Clinic Funding Act
- Bill Number
- S. 4881
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Status
- Introduced
- Latest Action
- 2026-06-24: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-07-07T04:53:30Z
AI-Generated Summary
Purpose This legislation aims to adjust the funding rules for low-income taxpayer clinics by changing the required matching contributions for federal grants under the Internal Revenue Code.
Key Provisions
- Matching Funds Requirement: Clinics receiving grants must provide matching funds equal to an "applicable percentage" of the grant amount.
- What Counts as Matching Funds: Salaries (including fringe benefits) of clinic staff and costs of equipment used in the clinic qualify. General overhead or indirect expenses do not count.
- Applicable Percentage: Set at 100 percent by default, but the Secretary of the Treasury may lower it to no less than 25 percent if doing so would allow the clinic to serve more taxpayers.
- Technical Changes: Removes the first two paragraphs of section 7526(c) and renumbers the remaining paragraphs.
- Effective Date: Applies to calendar years starting after the bill becomes law.
Significant Changes to Existing Law The bill replaces a fixed matching requirement with a flexible percentage that the Treasury Secretary can reduce. It also expands the list of allowable matching contributions to include staff salaries and equipment while explicitly excluding indirect costs.
Potential Impacts
- Government agencies: The IRS may need to update grant administration and evaluation processes to handle variable matching percentages.
- Citizens: Low-income taxpayers could gain access to more clinic services if reduced matching requirements enable additional clinics or expanded operations.
- International relations: None identified.
Main Stakeholders Affected
- Low-income taxpayer clinics and their sponsoring institutions.
- Low-income individuals who use clinic services.
- The Internal Revenue Service and the Treasury Department.
Notable Legal, Constitutional, or Political Implications The bill makes no changes to constitutional authority or creates new legal obligations beyond adjusting an existing grant program in the tax code.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-06-24: Read twice and referred to the Committee on Finance.
- 2026-06-24: Introduced in Senate
Bill Versions
- Unlocking Low-Income Taxpayer Clinic Funding Act — issued 2026-06-24 — PDF (3 pages)