[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1987 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 1987
To help charitable nonprofit organizations provide services to meet the
increasing demand in community needs caused by the coronavirus
pandemic, preserve and create jobs in the nonprofit sector, reduce
unemployment, and promote economic recovery.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 17, 2021
Ms. Sanchez (for herself, Mr. Beyer, Mr. Kilmer, Mr. Pocan, and Mr.
Schneider) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To help charitable nonprofit organizations provide services to meet the
increasing demand in community needs caused by the coronavirus
pandemic, preserve and create jobs in the nonprofit sector, reduce
unemployment, and promote economic recovery.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Work Opportunities and Resources to
Keep Nonprofit Organizations Well Act'' or the ``WORK NOW Act''.
SEC. 2. FINDINGS.
Congress finds as follows:
(1) Charitable nonprofit organizations serve on our
society's frontlines in good times and bad. Collectively,
nonprofit organizations employed more than 12,000,000 Americans
prior to the pandemic.
(2) As the Nation confronts the coronavirus pandemic and
the attendant economic crisis and recovery, communities
throughout the United States will rely on nonprofit
organizations more than ever to help more people in more
challenging circumstances.
(3) Nonprofit shelters, food banks, domestic violence
services, early childhood care and education centers, and
after-school facilities are being called to feed, house, and
care for the people whose lives have been disrupted by illness,
job loss, and closures.
(4) Charitable nonprofit organizations are being confronted
by a combination of contradictory forces, exponentially
increasing demand and devastating decreases in revenues.
(5) At the same time that need is soaring, many nonprofit
organizations are unable to host fundraising events, which
threatens an essential source of revenue. Charitable giving has
also become more precarious as American families conserve
resources in the face of the economic crisis.
(6) Without immediate and longer-term resources to keep
their doors open to meet ever-increasing needs, many nonprofit
organizations will cease to exist for people in local
communities throughout the country.
(7) In order to meet the needs of the coronavirus pandemic
and drive recovery, many nonprofit organizations must innovate
and create new models of service delivery.
(8) More than 36,000,000 American workers lost their jobs
and filed for unemployment benefits in the 8 weeks following
March 15, 2020.
(9) As of January 2021, more than 950,000 nonprofit
organization jobs have been lost during the pandemic, according
to the Johns Hopkins Center for Civil Society Studies.
(10) Providing these newly unemployed workers the
opportunity to find employment at nonprofit organizations in
their local communities will benefit these workers, nonprofit
organizations, and the people these organizations serve.
SEC. 3. DEFINITIONS.
In this Act:
(1) Eligible nonprofit organizations.--The term ``eligible
nonprofit organization'' means an entity, other than an
intermediary, that is described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from taxation under
section 501(a) of such Code.
(2) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term ``Indian tribe'' in section 102 of the
Housing and Community Development Act of 1974 (42 U.S.C. 5302).
(3) Intermediary.--The term ``intermediary'' means an
entity, described in section 501(c)(3) of the Internal Revenue
Code of 1986 and exempt from taxation under section 501(a) of
such Code, that is--
(A) a national or regional nonprofit organization
that operates in multiple locations throughout the
United States, or a region of the United States, as a
single legal entity and directly employs more than 500
employees; or
(B) a national or regional nonprofit organization
that provides administrative and supportive services to
its network of affiliates, members, or branches, which
may include pass-through funding, training, and
technical assistance.
(4) Local government.--The term ``local government'' has
the meaning given the term ``unit of general local government''
in section 102 of the Housing and Community Development Act of
1974 (42 U.S.C. 5302).
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(6) State.--The term ``State'' has the meaning given the
term in section 102 of the Housing and Community Development
Act of 1974 (42 U.S.C. 5302).
SEC. 4. ESTABLISHMENT OF WORK NOW GRANT PROGRAM.
The Secretary of the Treasury shall establish a program in
accordance with this Act to award grants for the purpose of providing
emergency relief to eligible nonprofit organizations and
intermediaries, particularly those organizations and intermediaries
whose workers are serving public needs that have increased as a result
of the coronavirus pandemic and the attendant economic crisis, by
helping such organizations and intermediaries scale their services and
put unemployed individuals back to work serving their communities.
SEC. 5. GRANTS TO STATES, LOCAL GOVERNMENTS, AND INDIAN TRIBES.
(a) Formula.--
(1) In general.--The Secretary shall distribute 78 percent
of the amounts appropriated under section 10 as block grants to
States and local governments, based on a formula developed by
the Secretary that is consistent with the formula under section
106 of the Housing and Community Development Act of 1974 (42
U.S.C. 5306), for distribution through grants to eligible
nonprofit organizations.
(2) Indian tribes.--The Secretary shall distribute 2
percent of the amounts appropriated under section 10 as block
grants to Indian Tribes based on a formula developed by the
Secretary that is consistent with the formula for the Indian
Community Development Block Grant Program authorized under
title I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.), notwithstanding section 106(a)(1) of
such Act (42 U.S.C. 5306(a)(1)), for distribution through
grants to eligible nonprofit organizations.
(b) Applications.--An eligible nonprofit organization seeking a
grant from a State, local government, or Indian Tribe receiving funding
under subsection (a) shall submit an application to the State, local
government, or Indian Tribe at such time, in such manner, and
containing such information as the State, local government, or Indian
Tribe may reasonably require.
(c) Limitation on Grant Amounts.--In awarding grants under this
section, a State, local government, or Indian Tribe receiving funding
under subsection (a) shall have discretion to set the size of each
grant to an eligible nonprofit organization, except each such grant
shall not exceed $3,000,000.
(d) Selection.--A State, local government, or Indian Tribe
receiving funding under subsection (a), in awarding grants to eligible
nonprofit organizations, shall--
(1) give priority to such organizations that serve public
needs that have increased as a result of the coronavirus
pandemic and associated economic crisis, including--
(A) organizations that provide housing and
emergency shelter;
(B) organizations that provide public health or
patient and caregiver support services and are not
hospital organizations to which section 501(r) of the
Internal Revenue Code of 1986 applies;
(C) arts and cultural organizations;
(D) organizations that address food insecurity;
(E) organizations that provide supplemental
educational services to children, including tutoring,
social emotional development activities, and other
extracurricular activities to compensate for learning
loss and other disruptions due to the pandemic;
(F) direct services organizations that provide
services to individuals in order to help them stabilize
their lives and find self-sufficiency through providing
for basic needs, such as housing, emergency shelter,
food, water, clothing, transportation, child care, and
out-of-school time youth service providers; and
(G) organizations that serve rural areas; and
(2) ensure that a significant proportion of such grants are
awarded to eligible nonprofit organizations that are able to
scale services quickly and hire back former employees and new
workers.
SEC. 6. GRANTS TO INTERMEDIARIES.
(a) In General.--The Secretary shall distribute 20 percent of the
amounts appropriated under section 10 through grants to intermediaries.
(b) Applications.--An intermediary seeking a grant under this
section--
(1) may seek such grant on behalf of--
(A) the intermediary;
(B) the network of affiliates, members, or branches
of the intermediary; or
(C) the intermediary and the network described in
subparagraph (B); and
(2) shall submit an application to the Secretary at such
time, in such manner, and containing such information as the
Secretary may reasonably require, including an assurance that
the intermediary has systems in place to disburse funds
efficiently.
(c) Grant Amounts.--
(1) In general.--Subject to paragraphs (2) and (3), in
awarding grants under this section, the Secretary shall have
the discretion to determine the amount of each grant.
(2) Limitation.--Subject to paragraph (3), a grant awarded
under this section shall not exceed $100,000,000.
(3) Additional funding for hiring new employees.--The
Secretary may award a grant under this section that exceeds the
maximum amount under paragraph (2), but does not exceed
$300,000,000, if the intermediary demonstrates in the
application under subsection (b) that the intermediary intends
to use the difference between the amount awarded through the
grant and the maximum amount under paragraph (2) for hiring
employees after the date of enactment of this Act.
(d) Selection.--In awarding grants under this section, the
Secretary shall--
(1) give the same priority to intermediaries as States,
local governments, and Indian Tribes are required to give to
eligible nonprofit organizations under section 5(d)(1);
(2) ensure that all intermediaries that receive grants
under this section are able to scale services quickly and hire
new workers; and
(3) give special consideration to intermediaries with a
history of dispersing funds, staffing that is sufficient to
ensure compliance, and a history of working with communities
most impacted by the coronavirus pandemic.
SEC. 7. USES OF FUNDS.
(a) Employee Compensation Costs.--
(1) In general.--Subject to paragraph (2), each eligible
nonprofit organization or intermediary receiving funding under
this Act (and any entity receiving funding through such
intermediary) shall (subject to subsection (c)) use not less
than 60 percent of the funds of the grant for employee
compensation costs, including--
(A) wages and salaries, not to exceed $50,000;
(B) benefits, including paid sick leave; and
(C) worker protections, including protective
personal equipment.
(2) Limitations.--
(A) In general.--The employee compensation costs
described in paragraph (1) shall, with respect to an
eligible nonprofit organization or intermediary
receiving funding under this Act (and any entity
receiving funding through such intermediary) that is
not described in subparagraph (B), shall only be for
employees hired after the date of enactment of this
Act, including any such employee with whom the
organization, intermediary, or entity has terminated
employment, or placed on furlough, at any time prior to
such date of enactment.
(B) Organizations in financial distress.--
(i) In general.--The employee compensation
costs described in paragraph (1) may, with
respect to an eligible nonprofit organization
or intermediary receiving funding under this
Act (and any entity receiving funding through
such intermediary) that is described in clause
(ii), be for employees described in
subparagraph (A) or employees who were hired
prior to the date of enactment of this Act.
(ii) Demonstration of financial distress.--
An eligible nonprofit organization or
intermediary receiving funding under this Act
(or any entity receiving funding through such
intermediary) is described in this clause if--
(I) the organization, intermediary,
or entity asserts in the application
submitted under section 5(b), or
section 6(b), as applicable, that the
use of such funds to pay employee costs
for employees hired prior to the date
of enactment of this Act is necessary
due to financial limitations resulting
from the coronavirus pandemic and
attendant economic crisis; and
(II) the State, local government,
or intermediary awarding the funds
agrees with the assertion under
subclause (I), considering such
criteria and under such procedures as
the Secretary may prescribe.
(3) Guidance on employee compensation.--The Secretary may
provide guidance on items that are included as employee
compensation under paragraph (1).
(b) Operating and Programmatic Costs.--Each eligible nonprofit
organization or intermediary receiving funding under this Act (and any
entity receiving funding through such intermediary) may use not more
than 40 percent of the funding to cover operating costs (such as rent,
utilities, insurance policies, and maintenance) and programmatic costs,
including costs associated with online delivery.
(c) Innovative Models.--Any eligible nonprofit organization or
intermediary receiving a grant under this Act (and any entity receiving
funding through such intermediary) may use a portion of the funds
awarded through such grant for employee compensation costs under
subsection (a) to innovate and create new service delivery models to
meet the needs of the crisis resulting from the coronavirus pandemic.
SEC. 8. OVERSIGHT, SUPERVISION, AND REPORTS.
(a) In General.--The Secretary shall supervise the distribution of
funding under this Act to ensure that such funding is being used for
purposes consistent with the purposes of this Act.
(b) Sharing.--Each State, local government, or Indian Tribe that
receives funding under this Act shall submit to the Secretary a list of
all recipients of grants under this Act that were made by the State,
local government, or Indian Tribe. The Secretary shall make all such
lists publicly available.
(c) Oversight.--The Inspector General of the Department of the
Treasury shall conduct monitoring and oversight of the receipt,
disbursement, and use of funds made available under this Act in the
same manner as the Inspector General conducts monitoring and oversight
of the receipt, disbursement, and use of funds made available under
601(f) of the Social Security Act, as added by section 5001(a) of the
CARES Act (Public Law 116-136).
SEC. 9. TIMING AND PROGRAM DURATION.
(a) In General.--Not later than 30 days after the date of enactment
of this Act, the Secretary shall disburse funding to States, local
governments, and Indian Tribes under section 5.
(b) Grants to Eligible Nonprofit Organizations.--Not later than 60
days after receiving funding from the Secretary under section 5, each
State, local government, or Indian Tribe receiving such funding shall
award grants to eligible nonprofit organizations that apply for such
grants in accordance with such section.
(c) Intermediaries.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall disburse grants to
intermediaries that apply for a grant under section 6 in accordance
with such section.
SEC. 10. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this Act
$50,000,000,000, to remain available until expended.
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