Bill Summary
The Economic Mobility Corps Act of 2019 is a bill that seeks to address the need for more talent and capacity in community development financial institutions (CDFIs) through a partnership with national service programs. The bill would authorize a grant program that would allow eligible CDFIs to receive funding to place national service participants, including volunteers in the National Senior Service Corps, at their institutions to provide services such as financial counseling, job placement, and affordable housing financing. The bill also includes provisions for data collection and reporting on the progress and impact of these placements. Additionally, the bill would expand the activities of the Economic Mobility VISTA program, which focuses on financial literacy and foreclosure prevention in low-income communities. The bill authorizes $1 million in funding for fiscal year 2020 and each of the following 4 years.
Possible Impacts
1. The Economic Mobility Corps Act could provide financial assistance and resources for low-income and economically disadvantaged individuals and communities through community development financial institutions.
2. The Act could also create opportunities for young adults and youth in national service programs to gain experience and skills by working with community development financial institutions.
3. The Act may prioritize and give preferential consideration to projects that serve rural communities and veterans, potentially providing much-needed resources and support for these underserved populations.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3845 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 3845
To authorize a grant program that strengthens the capacity of community
development financial institutions through alignment with national
service participants.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 18, 2019
Mr. Kilmer (for himself, Mr. Moolenaar, Mr. McAdams, Mr. Stivers, Miss
Rice of New York, Ms. Porter, Mr. Himes, Ms. Tlaib, Mr. Schneider, Mr.
Perlmutter, and Mrs. Murphy) introduced the following bill; which was
referred to the Committee on Education and Labor
_______________________________________________________________________
A BILL
To authorize a grant program that strengthens the capacity of community
development financial institutions through alignment with national
service participants.
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 ``Economic Mobility Corps Act of
2019''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds the following:
(1) There exists a network of over 1,000 Treasury-certified
community development financial institutions located in all 50
States, the District of Columbia, Guam, and the Commonwealth of
Puerto Rico.
(2) Community development financial institutions are
mission-driven financial lenders that provide critical and
responsible financial products and services that benefit low-
income and distressed communities, economically disadvantaged
people, and community businesses.
(3) Community development financial institutions need more
talent and human capacity to better meet the needs of the low-
income and distressed communities, economically disadvantaged
populations, and community businesses that they serve.
(4)(A) National service programs, carried out through the
Corporation for National and Community Service, are national,
State, and local service programs provided through a network
that connects over 70,000 Americans each year in intensive
service to improve lives, strengthen communities, and inspire
civic engagement.
(B) Economic opportunity is one of the Corporation's focus
areas for national service corps or programs.
(5)(A) Community development financial institutions and
national service programs each engage local residents and
community partners to improve community safety, health,
housing, and economic opportunities, and to meet community-
identified needs.
(B) Residents of low-income communities, especially youth
and young adults, can be empowered through their national
service, and can help provide future leadership for community
development financial institutions and for the communities they
serve.
(6) The Corporation for National and Community Service has
engaged in partnerships, similar to the partnership created
under this Act, with Federal agencies such as the Department of
Transportation, the Department of Education, the Department of
Justice, and the Forest Service.
(b) Purposes.--The purposes of this Act are to--
(1) create a partnership between the Corporation for
National and Community Service and the Department of the
Treasury to connect the work of covered community development
financial institutions with passionate and dedicated national
service participants, including volunteers in the National
Senior Service Corps;
(2) strengthen the capacity of covered community
development financial institutions to provide services, which
services may include financial counseling, financial services,
job placement, small business financing, affordable rental
housing financing, commercial facility financing, community
facility financing, single family home financing, and
foreclosure prevention services;
(3) expand the direct services provided by covered
community development financial institutions; and
(4) deploy national service participants, including
volunteers in the National Senior Service Corps, in impactful
national service that aligns with objectives in the
Corporation's economic opportunity focus area.
SEC. 3. DEFINITIONS.
In this Act:
(1) Chief executive officer.--The term ``Chief Executive
Officer'' means the Chief Executive Officer of the Corporation
for National and Community Service appointed under section 193
of the National and Community Service Act of 1990 (42 U.S.C.
12651c).
(2) Covered community development financial institution.--
The term ``covered community development financial
institution'' means any nonprofit entity that meets the
definition of a community development financial institution in
section 103 of the Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4702) and is certified as a
community development financial institution by the Department
of the Treasury.
(3) Eligible entity.--The term ``eligible entity'' means--
(A) a covered community development financial
institution with an approved application under section
5; or
(B) an organization, with an approved application
under section 5, that places participants with covered
community development financial institutions and
provides technical management to those institutions.
(4) Participant.--
(A) In general.--The term ``participant'' means an
individual in an approved national service position.
(B) Rule.--A participant shall not be considered to
be an employee of an eligible entity or a covered
community development financial institution receiving
assistance under this Act.
(5) Placement site.--The term ``placement site'' means the
location of the covered community development financial
institution at which a participant shall be placed for service.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
SEC. 4. INTERAGENCY AGREEMENT FOR THE ECONOMIC MOBILITY CORPS ACT OF
2019.
(a) Interagency Agreement.--
(1) In general.--The Chief Executive Officer shall enter
into an interagency agreement under section 121(b)(6) of the
National and Community Service Act of 1990 (42 U.S.C.
12571(b)(6)) with the Secretary that is similar to an
interagency agreement described in section 121(b)(1) of such
Act (42 U.S.C. 12571(b)(1)), regarding the grant program
described in section 5, except that funds appropriated under
this Act may be used as if appropriated for the purposes for
which funds may be provided through grants under section 121(a)
of the National and Community Service Act of 1990 (42 U.S.C.
12571(a)). Except as otherwise provided in this Act, the
provisions of the National and Community Service Act of 1990
(42 U.S.C. 12501 et seq.), other than paragraphs (1) through
(5) of section 121(b) of that Act (42 U.S.C. 12571(b)), that
apply to a national service program supported under that
section 121(b) shall apply to the grant program described in
section 5.
(2) Amendment to the ncsa.--Section 121(b) of such Act (42
U.S.C. 12571(b)) is amended by adding at the end the following:
``(6) Community development financial institution grant
interagency agreement.--Notwithstanding paragraph (1), the
Corporation shall enter into an interagency agreement similar
to an interagency agreement described in paragraph (1) with the
Secretary of the Treasury under this subsection regarding the
community development financial institution grant program
described in section 5 of the Economic Mobility Corps Act of
2019.''.
(b) Approved National Service Positions.--
(1) In general.--The Chief Executive Officer shall approve
positions for Economic Mobility Corps projects as approved
national service positions in accordance with subtitle C of
title I of the National and Community Service Act of 1990 (42
U.S.C. 12571 et seq.).
(2) Distribution of assistance and approved positions
unaffected.--Nothing in this Act shall be construed to affect
the distribution of assistance or approved national service
positions under section 129 of the National and Community
Service Act of 1990 (42 U.S.C. 12581). Funds appropriated under
section 8 shall be used for the costs associated with that
assistance or those positions, for the program carried out
under section 5.
(c) Treatment of Funds Appropriated.--
(1) National service trust.--For purposes of subsections
(a)(1) and (b) of section 145 of the National and Community
Service Act of 1990 (42 U.S.C. 12601(a)(1)), a portion of the
funds appropriated under this Act, as determined by the Chief
Executive Officer based on the number of participants selected
for Economic Mobility Corps projects, shall be treated,
respectively, as funds appropriated to the Corporation and made
available to carry out subtitle D of title I of the National
and Community Service Act of 1990 (42 U.S.C. 12601 et seq.) and
as funds appropriated to the Trust established under such
section.
(2) Audits.--For purposes of section 149(c) of the National
and Community Service Act of 1990 (42 U.S.C. 12606(c)), funds
appropriated under this Act shall be treated as appropriated
funds for approved national service positions.
SEC. 5. ECONOMIC MOBILITY CORPS GRANT PROGRAM.
(a) In General.--The Chief Executive Officer, in consultation with
the Secretary, shall award grants, on a competitive basis, to eligible
entities to enable such eligible entities to place participants at
placement sites for the purpose of engaging them in Economic Mobility
Corps projects.
(b) Applications.--To be eligible to receive a grant under this
Act, an entity shall submit an application regarding an Economic
Mobility Corps project to the Chief Executive Officer at such time, in
such manner, and containing such information, as the Chief Executive
Officer may require, including--
(1) a description of the long-term goals and objectives for
the project involved and the benchmarks that the eligible
entity will use to determine whether to place participants with
a covered community development financial institution and to
evaluate the performance of the covered community development
financial institution in carrying out the project; and
(2) the number of participants intended to be placed with
the covered community development financial institution, in
accordance with thresholds set by the Chief Executive Officer,
with respect to both the minimum and maximum numbers of
participants that can be placed with a covered community
development financial institution, including such an
institution that is an eligible entity.
(c) Priority.--In making grants under this Act, the Chief Executive
Officer, in consultation with the Secretary, shall give preferential
consideration to entities proposing to serve rural communities or
veterans.
(d) Use of Funds.--
(1) Orientation and recruitment.--An eligible entity that
receives a grant under this section shall use the funds made
available through the grant--
(A) to develop a training orientation, in which
each selected participant will take part; and
(B) to identify and encourage individuals,
including those who are residents in the community to
be served or otherwise reflect the demographics of the
community, to serve as participants in community
investment, including the activities described in
paragraph (3), in the projects.
(2) Assistance.--An eligible entity that receives a grant
under this section for an Economic Mobility Corps project shall
use the grant funds to provide assistance, consistent with
subtitle C of title I of the National and Community Service Act
of 1990 (42 U.S.C. 12571 et seq.), for the project, including
assistance for participants selected for the project in
carrying out the activities described in paragraph (3).
(3) Activities.--In carrying out those activities, each
selected participant shall--
(A) strengthen the capacity of, and expand the
direct services provided by, the covered community
development financial institution, which services may
include financial counseling, financial services, job
placement, small business financing, affordable rental
housing financing, commercial facility financing,
community facility financing, single family home
financing, and foreclosure prevention services; and
(B) provide such direct services.
SEC. 6. REPORTING REQUIREMENTS.
(a) In General.--As a condition on receipt of any funds for a
project under this Act, each eligible entity shall agree to prepare and
submit a report at such time, in such manner, and containing such
information as the Chief Executive Officer, in consultation with the
Secretary, may require.
(b) Content.--In preparing the report the eligible entity shall, at
a minimum--
(1) collect and present data on the degree to which the
covered community development financial institution has made
progress toward meeting the long-term goals and objectives
described in the entity's application and the performance of
the covered community development financial institution on the
benchmarks described in the application;
(2) collect and present demographic data about the
participants; and
(3) describe the target area and, if appropriate, target
population engaged and served by the covered community
development financial institution, including whether the
covered community development financial institution serves a
rural community or veterans.
SEC. 7. ECONOMIC MOBILITY VISTA ACTIVITIES.
Section 103(a)(9) of the Domestic Volunteer Service Act of 1973 (42
U.S.C. 4953(a)(9)) is amended to read to read as follows:
``(9) in developing and carrying out--
``(A) financial literacy, financial planning,
budgeting, saving, and reputable credit accessibility
programs in low-income communities, including those
programs that educate individuals about financing home
ownership and higher education; and
``(B) foreclosure prevention programs (including
programs at community development financial
institutions under section 103 of the Community
Development Banking and Financial Institutions Act of
1994 (12 U.S.C. 4702) and at other nonprofit
organizations), which programs are in low-income
communities and educate individuals about financing
home ownership and higher education;''.
SEC. 8. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Corporation,
$1,000,000, for fiscal year 2020 and each of the 4 succeeding fiscal
years.
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