$1.7 Trillion Omnibus Appropriations Bill Final Text Released Financial Provisions Overview



The U.S. Senate Appropriations Committee released the fiscal year 2023 Omnibus Appropriations bill which includes $1.7 trillion allotted to various programs and defense funding. While there has been some speculation that the bill would include tax extenders, none were present. However, there are numerous items that are included which could impact CPAs and their clients. The following is a brief overview of the most relevant components, all of which are expected to pass as a part of the bill, in some form, by Friday, Dec. 23. As such, the MICPA expects to continue its coverage following the bill’s passage and any resultant updates in our regular e-newsletter on Tuesday of next week.

  • The SECURE Act 2.0
    • Expands automatic enrollment by making 401(k) and 403(b) enrollment automatic for employees upon reaching eligibility, with certain defined exceptions.
    • Increases the 3-year small-business startup credit from 50% to 100% for employers with up to 50 employees, with some noted exceptions.
    • The U.S. Treasury is tasked with increasing awareness of the ‘Saver’s Match’ as well as its associated penalties and repayment details.
    • Increases the age threshold for mandatory withdraws from age 72 to age 73, effective Jan. 1, 2023, then again to age 75 on Jan. 1, 2033.
    • Implements IRA catch-up limit indexing, effecting for taxable years after Dec. 31, 2023.
    • Allow employers to provide small, immediate incentives (like gift cards) for employees that choose to contribute to a 401(k) plan.
    • Small employers to receive credit for providing military spouse retirement plan eligibility immediately available, among other factors with defined credits outlined in Section 112.
    • Expands contribution and deferral limits to SIMPLE plans and allows additional nonelective contributions, per sections 116 and 117.
    • Introduces emergency savings accounts linked to pensions for non-highly compensated employees.
    • Creates enhancements to 403(b) plans by allowing participation in group trusts with other tax-preferred savings plans, IRAs.
    • Eliminates penalties on partial annuitization.
    • Introduces simplifications and clarifies certain retirement plan rules.
    • Other provisions of the SECURE Act 2.0 can be found in the full section-by-section summary.
  • Accelerating Holding Foreign Companies Accountable Act.
  • A directive to the Treasury Department to consider establishing an outward-bound investment screening program and to report to Congress on the resources required to establish such a program over the next three years.
  • Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2021.
  • The Merger Filing Fee Modernization Act.
  • The INFORM Consumers Act.
  • The Financial Crimes Enforcement Network (FinCEN) is encouraged to finalize its 2015 proposed regulation to subject investment advisors to the Federal Bank Secrecy Act rules.
  • Reauthorization of the National Flood Insurance Program until Sept. 30, 2023.
  • An anti-money laundering whistleblower program.
  • The Ransomware Act. The FTC is also required to produce a report on ransomware attacks.
  • The U.S. Securities and Exchange Commission (SEC) is urged to ensure that the Consolidated Audit Trail has adequate breach notification policies.
  • The SEC is required to issue rules for the issuance of registered index-linked annuities.
  • The SEC is encouraged to issue rules to require public companies to disclose basic financial information on a country-by-country basis.
  • The SEC is directed to submit a report to Congress within 120 days on how the SEC can incorporate outreach to small businesses and investors, particularly women and minority-owned businesses, into each rulemaking.
  • The SEC is encouraged to require retail-friendly disclosures for Special Purpose Acquisition Companies (SPACs).
  • The Consumer Financial Protections Bureau (CFPB) is directed to provide an informal, nonpublic briefing annually before the Appropriations Committee.
  • Treasury is given increased funding to develop its beneficial ownership database.
  • The Government Accountability Office (GAO) is required to report on barriers on collecting data on the eviction process and a renter’s age, race, gender, household composition and landlord data.
  • The U.S. Department of Housing and Urban Development (HUD) is directed to maintain its efforts to prioritize governmental entities and nonprofits in Federal Housing Administration (FHA) note sales to counter recent trends of increasing concentration of institutional financial investment in single-family housing.
  • The GAO is directed to study and issue a report on the prevalence and location of institutional investors in single-family housing, the types of institutional investors involved, and the impacts of such investments on both the housing market and on the tenants residing in the homes. The GAO is directed to brief the House and Senate Committees on Appropriations on proposed scope and timeline of this report no later than 180 days after enactment of this act and to submit the final report to the Committees upon completion.
  • Increases funding for various housing-related programs:
    • $1.5 billion for the HOME Investment Partnerships Program.
    • $6.39 billion for the Community Development Block Grant formula program and related local economic and community development projects that benefit low- and moderate-income areas and people. Within the account, the bill provides $85 million for a new “Yes In My Back Yard” grant program to incentivize affordable housing production.
    • $225 million to empower manufactured housing residents and communities to preserve and revitalize this source of low-and middle-income housing that makes up 15% of all housing in rural communities.
    • $3.63 billion for Homeless Assistance Grants. Within the account, the bill maintains efforts to expand assistance to special populations including $52 million for survivors of domestic violence, $107 million for homeless youth, and $75 million for new permanent supportive housing for people experiencing homelessness.
    • $1.435 billion allocated for the Housing for the Elderly and Housing for Persons with Disabilities program.
    • $130 million for new incremental Section 8 Housing Choice Vouchers to support over 11,700 additional low-income households.
    • The bill makes the largest ever annual appropriation in Native community housing of $1.02 billion, a historic high.
  • New reporting and sanctions with respect to Iran.

The MICPA will continue covering developments associated with the Omnibus Appropriations bill as they occur. Stay tuned to our channels for applicable updates and guidance. 

Source: MICPA

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