WORK NOW Act

I 116TH CONGRESS 2D SESSION H. R. 7495 To help charitable nonprofit organizations provide services to meet the in- creasing demand in community needs caused by the coronavirus pan- demic, preserve and create jobs in the nonprofit sector, reduce unemploy- ment, and promote economic recovery. IN THE HOUSE OF REPRESENTATIVES JULY 6, 2020 Ms. SA´NCHEZ (for herself, Ms. VELA´ZQUEZ, Mrs. MCBATH, Mr. KILMER, Mr. BEYER, Ms. KUSTER of New Hampshire, Mr. POCAN, and Mr. SCHNEI- DER) 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 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 ‘‘Work Opportunities 4 and Resources to Keep Nonprofit Organizations Well Act’’ 5 or the ‘‘WORK NOW Act’’. 6 VerDate Sep 11 2014 23:00 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7495.IH H7495 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 7495 IH SEC. 2. FINDINGS. 1 Congress finds as follows: 2 (1) Charitable nonprofit organizations serve on 3 our society’s frontlines in good times and bad. Col- 4 lectively, nonprofit organizations employ more than 5 12,000,000 Americans. 6 (2) As the Nation confronts the coronavirus 7 pandemic and the attendant economic crisis and re- 8 covery, communities throughout the United States 9 will rely on nonprofit organizations more than ever 10 to help more people in more challenging cir- 11 cumstances. 12 (3) Nonprofit shelters, food banks, domestic vi- 13 olence services, early childhood care and education 14 centers, and after-school facilities are being called to 15 feed, house, and care for the people whose lives have 16 been disrupted by illness, job loss, and closures. 17 (4) Charitable nonprofit organizations are being 18 confronted by a combination of contradictory forces: 19 exponentially increasing demand and devastating de- 20 creases in revenues. 21 (5) At the same time that need is soaring, 22 many nonprofit organizations are unable to host 23 fundraising events, which threatens an essential 24 source of revenue. Charitable giving has also become 25 VerDate Sep 11 2014 23:00 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7495.IH H7495 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 7495 IH more precarious as American families conserve re- 1 sources in the face of the economic crisis. 2 (6) Without immediate and longer-term re- 3 sources to keep their doors open to meet ever-in- 4 creasing needs, many nonprofit organizations will 5 cease to exist for people in local communities 6 throughout the country. 7 (7) In order to meet the needs of the 8 coronavirus pandemic and drive recovery, many non- 9 profit organizations must innovate and create new 10 models of service delivery. 11 (8) More than 36,000,000 American workers 12 lost their jobs and filed for unemployment benefits 13 in the 8 weeks following March 15, 2020. 14 (9) Providing these newly unemployed workers 15 the opportunity to find employment at nonprofit or- 16 ganizations in their local communities will benefit 17 these workers, nonprofit organizations, and the peo- 18 ple these organizations serve. 19 SEC. 3. DEFINITIONS. 20 In this Act: 21 (1) ELIGIBLE NONPROFIT ORGANIZATIONS.— 22 The term ‘‘eligible nonprofit organization’’ means an 23 entity that is described in section 501(c)(3) of the 24 VerDate Sep 11 2014 23:00 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7495.IH H7495 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 7495 IH Internal Revenue Code of 1986 and exempt from 1 taxation under section 501(a) of such Code. 2 (2) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 3 has the meaning given the term ‘‘Indian tribe’’ in 4 section 102 of the Housing and Community Devel- 5 opment Act of 1974 (42 U.S.C. 5302). 6 (3) INTERMEDIARY.—The term ‘‘intermediary’’ 7 means a national or regional nonprofit organization 8 that provides administrative and supportive services 9 to its network of affiliates, members, or branches, 10 which may include pass-through funding, training, 11 and technical assistance. 12 (4) LOCAL GOVERNMENT.—The term ‘‘local 13 government’’ has the meaning given the term ‘‘unit 14 of local government’’ in section 102 of the Housing 15 and Community Development Act of 1974 (42 16 U.S.C. 5302). 17 (5) SECRETARY.—The term ‘‘Secretary’’ means 18 the Secretary of the Treasury. 19 (6) STATE.—The term ‘‘State’’ has the mean- 20 ing given the term in section 102 of the Housing 21 and Community Development Act of 1974 (42 22 U.S.C. 5302). 23 VerDate Sep 11 2014 23:00 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7495.IH H7495 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 7495 IH SEC. 4. ESTABLISHMENT OF WORK NOW GRANT PROGRAM. 1 The Secretary of the Treasury shall establish a pro- 2 gram in accordance with this Act to award grants for the 3 purpose of providing emergency relief to eligible nonprofit 4 organizations, particularly those organizations whose 5 workers are serving public needs that have increased as 6 a result of the coronavirus pandemic and the attendant 7 economic crisis, by helping such organizations scale their 8 services and put unemployed individuals back to work 9 serving their communities. 10 SEC. 5. GRANTS TO STATES, LOCAL GOVERNMENTS, AND 11 INDIAN TRIBES. 12 (a) FORMULA.— 13 (1) IN GENERAL.—The Secretary shall dis- 14 tribute 78 percent of the amounts appropriated 15 under section 10 as block grants to States and local 16 governments, based on a formula developed by the 17 Secretary that is consistent with the formula under 18 section 106 of the Housing and Community Devel- 19 opment Act of 1974 (42 U.S.C. 5306), for distribu- 20 tion through grants to eligible nonprofit organiza- 21 tions. 22 (2) INDIAN TRIBES.—The Secretary shall dis- 23 tribute 2 percent of the amounts appropriated under 24 section 10 as block grants to Indian Tribes based on 25 a formula developed by the Secretary that is con- 26 VerDate Sep 11 2014 23:00 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7495.IH H7495 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 7495 IH sistent with the formula for the Indian Community 1 Development Block Grant Program authorized 2 under title I of the Housing and Community Devel- 3 opment Act of 1974 (42 U.S.C. 5301 et seq.), not- 4 withstanding section 106(a)(1) of such Act (42 5 U.S.C. 5306(a)(1)), for distribution through grants 6 to eligible nonprofit organizations. 7 (b) APPLICATIONS.—An eligible nonprofit organiza- 8 tion seeking a grant from a State, local government, or 9 Indian Tribe receiving funding under subsection (a) shall 10 submit an application to the State, local government, or 11 Indian Tribe at such time, in such manner, and containing 12 such information as the State, local government, or Indian 13 Tribe may reasonably require. 14 (c) LIMITATION ON GRANT AMOUNTS.—In awarding 15 grants under this section, a State, local government, or 16 Indian Tribe receiving funding under subsection (a) shall 17 have discretion to set the size of each grant to an eligible 18 nonprofit organization, except each such grant shall not 19 exceed $3,000,000. 20 (d) SELECTION.—A State, local government, or In- 21 dian Tribe receiving funding under subsection (a), in 22 awarding grants to eligible nonprofit organizations, 23 shall— 24 VerDate Sep 11 2014 23:00 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7495.IH H7495 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 7495 IH (1) give priority to such organizations that 1 serve public needs that have increased as a result of 2 the coronavirus pandemic and associated economic 3 crisis, including— 4 (A) organizations that provide housing and 5 emergency shelter; 6 (B) organizations that provide food insecu- 7 rity; and 8 (C) direct services organizations that pro- 9 vide services to individuals in order to help 10 them stabilize their lives and find self-suffi- 11 ciency through providing for basic needs, such 12 as housing, emergency shelter, food, water, 13 clothing, transportation, child care, and out-of- 14 school time youth service providers; 15 (2) give priority to such organizations located 16 in rural areas; and 17 (3) ensure that a significant proportion of such 18 grants are awarded to eligible nonprofit organiza- 19 tions that are able to scale services quickly and hire 20 new workers. 21 SEC. 6. GRANTS TO INTERMEDIARIES. 22 (a) IN GENERAL.—The Secretary shall distribute 20 23 percent of the amounts appropriated under section 10 24 through grants to intermediaries. 25 VerDate Sep 11 2014 23:00 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7495.IH H7495 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 7495 IH (b) APPLICATIONS.—An intermediary seeking a grant 1 under this section— 2 (1) may seek such grant on behalf of— 3 (A) the intermediary; 4 (B) the network of affiliates, members, or 5 branches of the intermediary; or 6 (C) the intermediary and the network de- 7 scribed in subparagraph (B); and 8 (2) shall submit an application to the Secretary 9 at such time, in such manner, and containing such 10 information as the Secretary may reasonably re- 11 quire, including an assurance that the intermediary 12 has systems in place to disburse funds efficiently. 13 (c) GRANT AMOUNTS.— 14 (1) IN GENERAL.—Subject to paragraphs (2) 15 and (3), in awarding grants under this section, the 16 Secretary shall have the discretion to determine the 17 amount of each grant. 18 (2) LIMITATION.—Subject to paragraph (3), a 19 grant awarded under this section shall not exceed 20 $100,000,000. 21 (3) ADDITIONAL FUNDING FOR HIRING NEW 22 EMPLOYEES.—The Secretary may award a grant 23 under this section that exceeds the maximum 24 amount under paragraph (2), but does not exceed 25 VerDate Sep 11 2014 23:00 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H7495.IH H7495 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 7495 IH $300,000,000, if the intermediary demonstrates in 1 the application under subsection (b) that the inter- 2 mediary intends to use the difference between the 3 amount awarded through the grant and the max- 4 imum amount under paragraph (2) for hiring em- 5 ployees after the date of enactment of this Act. 6 (d) SELECTION.—In awarding grants under this sec- 7 tion, the Secretary shall— 8 (1) give the same priority to intermediaries as 9 States, local governments, and Indian Tribes are re- 10 quired to give to eligible nonprofit organizations 11 under section 5(d)(1); 12 (2) ensure that all intermediaries that receive 13 grants under this section are able to scale services 14 quickly and hire new workers; and 15 (3) give special consideration to intermediaries 16 with a history of dispersing funds, staffing that is 17 sufficient to ensure compliance, and a history of 18 working with communities most impacted by the 19 coronavirus pandemic. 20 SEC. 7. USES OF FUNDS. 21 (a) EMPLOYEE COMPENSATION COSTS.— 22 (1) IN GENERAL.—Subject to paragraph (2), 23 each eligible nonprofit organization or intermediary 24 receiving funding under this Act (and any entity re- 25 VerDate Sep 11 2014 23:00 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H7495.IH H7495 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 7495 IH ceiving funding through such intermediary) shall 1 (subject to subsection (c)) use not less than 60 per- 2 cent of the funds of the grant for employee com- 3 pensation costs, including— 4 (A) wages and salaries, not to exceed 5 $50,000; 6 (B) benefits, including paid sick leave; and 7 (C) worker protections, including protective 8 personal equipment. 9 (2) LIMITATIONS.— 10 (A) IN GENERAL.—The employee com- 11 pensation costs described in paragraph (1) 12 shall, with respect to an eligible nonprofit orga- 13 nization or intermediary receiving funding 14 under this Act (and any entity receiving fund- 15 ing through such intermediary) that is not de- 16 scribed in subparagraph (B), shall only be for 17 employees hired after the date of enactment of 18 this Act, including any such employee with 19 whom the organization, intermediary, or entity 20 has terminated employment, or placed on fur- 21 lough, at any time prior to such date of enact- 22 ment. 23 (B) ORGANIZATIONS IN FINANCIAL DIS- 24 TRESS.— 25 VerDate Sep 11 2014 23:00 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H7495.IH H7495 pamtmann on DSKBC07HB2PROD with BILLS 11 •HR 7495 IH (i) IN GENERAL.—The employee com- 1 pensation costs described in paragraph (1) 2 may, with respect to an eligible nonprofit 3 organization or intermediary receiving 4 funding under this Act (and any entity re- 5 ceiving funding through such intermediary) 6 that is described in clause (ii), be for em- 7 ployees described in subparagraph (A) or 8 employees who were hired prior to the date 9 of enactment of this Act. 10 (ii) DEMONSTRATION OF FINANCIAL 11 DISTRESS.—An eligible nonprofit organiza- 12 tion or intermediary receiving funding 13 under this Act (or any entity receiving 14 funding through such intermediary) is de- 15 scribed in this clause if— 16 (I) the organization, inter- 17 mediary, or entity asserts in the appli- 18 cation submitted under section 5(b), 19 or section 6(b), as applicable, that the 20 use of such funds to pay employee 21 costs for employees hired prior to the 22 date of enactment of this Act is nec- 23 essary due to financial limitations re- 24 VerDate Sep 11 2014 23:00 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H7495.IH H7495 pamtmann on DSKBC07HB2PROD with BILLS 12 •HR 7495 IH sulting from the coronavirus pandemic 1 and attendant economic crisis; and 2 (II) the State, local government, 3 or intermediary awarding the funds 4 agrees with the assertion under sub- 5 clause (I), considering such criteria 6 and under such procedures as the 7 Secretary may prescribe. 8 (3) GUIDANCE ON EMPLOYEE COMPENSA- 9 TION.—The Secretary may provide guidance on 10 items that are included as employee compensation 11 under paragraph (1). 12 (b) OPERATING AND PROGRAMMATIC COSTS.—Each 13 eligible nonprofit organization or intermediary receiving 14 funding under this Act (and any entity receiving funding 15 through such intermediary) may use not more than 40 16 percent of the funding to cover operating costs (such as 17 rent, utilities, ins [Text truncated for display. 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