No GRIFT Act Sets Salary Cap for DOJ-Funded Nonprofits: Executive Pay Limited to Attorney General’s Wage Starting in 2026

The 'No Granting Riches Intended for Taxpayers Act of 2026'—or the No GRIFT Act—targets nonprofit organizations that rely heavily on federal money. Specifically, it bars the Department of Justice (DOJ) from awarding grants to any 501(c)(3) nonprofit if two conditions are met: the organization gets more than half of its annual revenue from DOJ grants, and it pays any single employee more than the U.S. Attorney General makes (currently around $235,000). To keep the money flowing, nonprofits will have to submit a formal certification with their grant applications proving they aren't crossing these lines.

The Federal Pay Ceiling

Under Section 2, the bill creates a strict 'salary cap' linked to the Attorney General’s pay. Think of it like a company policy that says you can't pay your manager more than the CEO makes if the government is footing most of the bill. For a nonprofit running a local reentry program or a victim advocacy center, this means if 51% of their budget comes from DOJ checks, they can't have a director pulling a corporate-style salary. It’s a move designed to ensure that tax dollars intended for public services aren't being diverted into high-end executive compensation packages.

Balancing the Books and the Mission

This legislation hits hardest for organizations that have become 'government-dependent'—those where the DOJ is the primary benefactor. For example, a specialized forensic lab that survives almost entirely on federal grants would have to choose between cutting executive pay or diversifying its income through private donations and state contracts to stay eligible. While this encourages nonprofits to stand on their own two feet, the immediate challenge is that these organizations might lose their top talent to the private sector if they can't offer competitive wages, potentially slowing down the very services—like DNA testing or legal aid—that the public relies on.

Paperwork and Accountability

The bill also adds a new layer of bureaucracy: the mandatory certification. Before a grant is awarded, the nonprofit must provide a paper trail showing their revenue sources and internal payroll from the most recent tax year. For smaller nonprofits that are already stretched thin, this is one more administrative hurdle to clear. However, for the taxpayer, it provides a clearer window into how public money is spent, ensuring that 'nonprofit' doesn't just mean 'government-funded' while paying out executive bonuses that rival the private sector.