Federal

Empowering Nonprofits Act

Source: Congress.gov · 381 words in original text

What This Bill Does

This bill requires federal executive agencies to reduce cost-sharing requirements by 25 percent for grants given directly to certain nonprofit organizations. The bill applies only to nonprofits located in states where more than 20 percent of people live below the federal poverty line (the income level the government sets as minimum for basic needs).

Who It Affects

- Heads of federal executive agencies (government departments and offices) - Nonprofit organizations that qualify as eligible - States, territories and federally recognized tribes with high poverty rates

Key Provisions

- Federal agencies must reduce cost-sharing requirements by 25 percent for eligible nonprofit organizations when giving grants directly to those organizations (Sec. 2(a)) - This requirement lasts for 5 years starting from when the bill becomes law (Sec. 2(a)) - Only nonprofit organizations located in states where more than 20 percent of people live below the federal poverty line qualify for the reduction (Sec. 2(b)(1))

What Changes

If this bill becomes law, nonprofit organizations in high-poverty states will pay 25 percent less of their own money as a cost-sharing requirement (matching funds they must contribute) when they receive federal grants. Federal agencies will be required to reduce these cost-sharing demands for a 5-year period.

Important Definitions

- Cost-sharing requirement: the amount of money a grant recipient must contribute themselves when receiving federal funds - Executive agency: as defined in section 133 of title 41, United States Code (Not specified in bill text what this means in plain terms) - Nonprofit organization: an organization described in section 501(c)(3) of the Internal Revenue Code and exempt from taxes under section 501(a) - State: includes the 50 states, District of Columbia, U.S. commonwealths, territories, possessions and federally recognized tribes

Effective Date

Begins on the date the bill becomes law and ends 5 years after that date (Sec. 2(a))

I 118TH CONGRESS 1ST SESSION H. R. 787 To require executive agencies to reduce cost-sharing requirements for certain grants with certain nonprofit organizations 25 percent, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 2, 2023 Mrs. GONZA´LEZ-COLO´N (for herself, Ms. VELA´ZQUEZ, Mr. SABLAN, Mrs. RADEWAGEN, and Mr. SOTO) introduced the following bill; which was re- ferred to the Committee on Oversight and Accountability A BILL To require executive agencies to reduce cost-sharing require- ments for certain grants with certain nonprofit organiza- tions 25 percent, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Empowering Non- 4 profits Act’’. 5 SEC. 2. REDUCTION OF COST-SHARING REQUIREMENTS 6 FOR GRANTS. 7 (a) REDUCTION OF COST-SHARING REQUIRE- 8 MENT.—Beginning on the date of the enactment of this 9 VerDate Sep 11 2014 20:42 Feb 24, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H787.IH H787 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 787 IH Act and ending 5 years thereafter, the head of an execu- 1 tive agency shall reduce any cost-sharing requirement 25 2 percent for an eligible nonprofit organization for grants 3 made directly to that organization. 4 (b) DEFINITIONS.—In this section: 5 (1) ELIGIBLE NONPROFIT ORGANIZATION.—The 6 term ‘‘eligible nonprofit organization’’ means a non- 7 profit organization that is located in a State with 8 more than 20 percent of individuals living below the 9 Federal poverty line. 10 (2) EXECUTIVE AGENCY.—The term ‘‘executive 11 agency’’ has the meaning given in section 133 of 12 title 41, United States Code. 13 (3) NONPROFIT ORGANIZATION.—The term 14 ‘‘nonprofit organization’’ means an organization that 15 is described in section 501(c)(3) of the Internal Rev- 16 enue Code of 1968 and exempt from taxation under 17 section 501(a) of such Code. 18 (4) STATE.—The term ‘‘State’’ means each of 19 the several States, the District of Columbia, each 20 commonwealth, territory, or possession of the United 21 States, and each federally recognized Tribe. 22 Æ VerDate Sep 11 2014 20:42 Feb 24, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H787.IH H787 pbinns on DSKJLVW7X2PROD with $$_JOB

Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.