Empowering Nonprofits Act
Empowering Nonprofits Act
Plain Language Summary
# Empowering Nonprofits Act (HR 314) Summary **What the Bill Does** The Empowering Nonprofits Act would reduce financial requirements that nonprofits must contribute when receiving federal grants. Specifically, it would lower "cost-sharing" requirements—the amount nonprofits must pay out of pocket to match federal funding—by 25% for five years after the bill becomes law. This means if a nonprofit currently needs to contribute $25 for every $100 in federal grant money, they would only need to contribute about $19 instead. **Who It Affects** The bill targets nonprofits located in high-poverty areas: any U.S.
state, territory, possession, the District of Columbia, or federally recognized Indian tribe where more than 20% of residents live below the poverty line. By reducing their financial burden, the bill aims to help nonprofits in economically struggling communities access federal funding more easily, allowing them to direct more resources toward their missions rather than matching grant requirements. **Current Status** The bill was introduced by Representative Aumua Amata Coleman Radewagen (R-AS) and is currently in committee, meaning it has not yet been debated or voted on by the full House of Representatives.
CRS Official Summary
Empowering Nonprofits ActThis bill reduces cost-sharing requirements for grants directly awarded to certain nonprofit organizations for the five years following the bill's enactment. Eligible nonprofit organizations are those located in a U.S. state (including the District of Columbia or a U.S. commonwealth, territory, or possession) or federally recognized Indian tribe that has more than 20% of individuals living below the poverty line.Specifically, the bill requires an executive agency, during that time frame, to reduce any cost-sharing requirement by 25% for grants made directly to an eligible nonprofit.
Latest Action
Referred to the House Committee on Oversight and Government Reform.