Congress cuts off legal aid by penalizing nonprofits for paying market rates
H.R. 9731 — No GRIFT Act of 2026 · Filed by Andy Biggs (R-AZ) · 2 cosponsors · Introduced Jul 16, 2026 · Referred to committee
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What it does
This bill bars nonprofit organizations from receiving Department of Justice grants if they meet two conditions: (1) more than 50% of their revenue came from DOJ grants in the prior year, and (2) they paid any officer or employee more than the Attorney General's salary (~$221,000 in 2026). Nonprofits must certify compliance when applying for DOJ grants.
Why we flagged it
The bill is a straightforward eligibility filter for federal grant recipients, not a substantive policy reform. It does not regulate nonprofit compensation directly; it only uses compensation as a disqualification trigger for grant access.
What the text implies
- Organizations that are heavily DOJ-dependent (>50% revenue) are often legal-aid societies, civil-rights nonprofits, and victim-services agencies serving low-income and marginalized populations. Cutting them off may reduce access to justice and victim support.
- The bill does not distinguish between reasonable market-rate compensation for experienced attorneys/executives and excessive pay. A nonprofit legal-aid organization paying a managing attorney $225,000 (above AG salary) would be ineligible, even if that salary is standard for the role.
The full analysis lists 5 implications of this text.
Who stands to gain
nonprofits with lower overhead and compensation structures; nonprofits with diversified funding sources not dependent on DOJ grants