Empowering Nonprofits Act
The Empowering Nonprofits Act would require executive federal agencies to reduce the cost-sharing that eligible nonprofit organizations must provide for grants awarded directly to those organizations. The reduction is 25 percent of the otherwise required cost-sharing, and it would apply for five years from the date of enactment. Eligible nonprofits are defined as 501(c)(3) organizations located in states where more than 20 percent of individuals live below the federal poverty line. The law sets parameters for what counts as an executive agency, nonprofit, and state, and it includes a sunset provision after five years unless extended. In short, the bill is intended to lower the financial barrier for certain nonprofits in high-poverty states to access federal grant funding.
Key Points
- 125% reduction in cost-sharing: For grants made directly to eligible nonprofits, agencies must reduce the required cost-sharing by 25 percent, effectively lowering the nonprofit’s share of grant costs.
- 2Time-limited effect: The reduced cost-sharing applies from enactment and lasts for five years.
- 3Eligibility criteria: An “eligible nonprofit organization” must be located in a state with more than 20% of individuals living below the federal poverty line, and must be a 501(c)(3) tax-exempt organization.
- 4Scope of recipients: The reduction applies to grants made directly to the eligible nonprofit; it does not specify reductions for subawards or pass-through arrangements.
- 5Definitions and scope: The act defines “executive agency” per 41 U.S.C. 133, and uses standard terms for nonprofit status (501(c)(3)) and state boundaries (including DC, territories, and federally recognized tribes).