Treasury Releases 2026-27 Priority Guidance Plan: DEI Rule, Johnson Amendment, Fiscal Sponsorship on the List

What happened:
Treasury released its 2026-2027 Priority Guidance Plan, the list of tax projects Treasury and the IRS will prioritize from October 1, 2026 through September 30, 2027.

Projects that directly affect nonprofits include:

• Final regulations on the “fundamental public policy” against racial discrimination — the DEI-related rule PANO flagged in August
• Guidance on the Johnson Amendment’s prohibition on political campaign intervention
• Exempt organization information reporting, including fiscal sponsorship arrangements — tied to the Form 990 Transparency Initiative PANO covered in April
• Guidance on donor advised funds
• Revisions to IRS rulings and determination letters
• Regulations on the new federal tax credit for scholarship granting organizations
• Regulations on excess compensation paid by certain tax-exempt organizations, and on the excise tax on investment income of certain private colleges and universities
• Regulations on where organizations must make materials available for public inspection

Why it matters:
The plan is the IRS’s road map for the year. Listing the racial-discrimination rule as a final regulation project signals Treasury intends to complete it within the plan year. As PANO noted in August, tax experts warn that rule could expand the Bob Jones “fundamental public policy” doctrine into a tool to threaten tax-exempt status for nonprofits with DEI programs.

Related:
The Senate Finance Committee advanced Jim Gadwood’s nomination as IRS Chief Counsel on a party-line vote. Senators’ written questions pressed him on the proposed regulation that would revoke exemption from schools that discriminate by race, color, or national or ethnic origin in admissions, scholarships, athletics, or other programs. Gadwood said he was not involved in drafting it and would advise consistent with the law.

Where things stand:
Treasury accepts public comments on the plan throughout the plan year. PANO will share each guidance item affecting nonprofits as it is released.

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