Bill Summary
The "Work Opportunities and Resources to Keep Nonprofit Organizations Well Act" (also known as the "WORK NOW Act") is a bill that aims to provide support for charitable nonprofit organizations in order to help them meet the increasing demands caused by the coronavirus pandemic. The goal is to preserve and create jobs in the nonprofit sector, reduce unemployment, and promote economic recovery. The bill would distribute funding to eligible nonprofit organizations, as well as intermediary organizations that provide administrative and supportive services to their network of affiliates. The funds can be used to cover employee compensation costs, as well as operating and programmatic costs. The Secretary of the Treasury would oversee the distribution of funds and ensure they are being used for the intended purposes. The bill also includes oversight and reporting measures to monitor the use of funds. The bill would authorize $50 billion in appropriations to carry out these actions.
Possible Impacts
1. The "WORK NOW Act" could provide funding for nonprofit organizations that have been hit hard by the economic crisis caused by the coronavirus pandemic, helping them to continue providing essential services to their communities. This could benefit people who rely on these services, such as those who are homeless or struggling with food insecurity.
2. Nonprofit organizations could use funds from the "WORK NOW Act" to innovate and create new service delivery models to meet the changing needs of their communities during the pandemic. For example, they may develop new ways to provide virtual or socially distanced services, which could benefit people who are at higher risk or unable to access traditional in-person services.
3. The "WORK NOW Act" includes provisions for oversight and monitoring of the distribution and use of funds. This could ensure that the funds are being used for their intended purpose and not misused or mismanaged. This could potentially prevent fraud or misuse of funds, protecting both the nonprofit organizations and the people they serve.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3747 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 3747
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 14, 2020
Ms. Klobuchar (for herself, Mr. Schatz, Mr. Wyden, Mr. Brown, Mr.
Carper, Mr. Markey, Mr. Merkley, Ms. Duckworth, Mr. Blumenthal, and Mr.
Coons) introduced the following bill; which was read twice and referred
to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Work Opportunities and Resources to
Keep Nonprofit Organizations Well Act'' or the ``WORK NOW Act''.
SEC. 2. FINDINGS.
Congress finds as follows:
(1) Charitable nonprofit organizations serve on our
society's frontlines in good times and bad. Collectively,
nonprofit organizations employ more than 12,000,000 Americans.
(2) As the nation confronts the coronavirus pandemic and
the attendant economic crisis and recovery, communities
throughout the United States will rely on nonprofit
organizations more than ever to help more people in more
challenging circumstances.
(3) Nonprofit shelters, food banks, domestic violence
services, early childhood care and education centers, and
after-school facilities are being called to feed, house, and
care for the people whose lives have been disrupted by illness,
job loss, and closures.
(4) Charitable nonprofit organizations are being confronted
by a combination of contradictory forces, exponentially
increasing demand and devastating decreases in revenues.
(5) At the same time that need is soaring, many nonprofit
organizations are unable to host fundraising events, which
threatens an essential source of revenue. Charitable giving has
also become more precarious as American families conserve
resources in the face of the economic crisis.
(6) Without immediate and longer-term resources to keep
their doors open to meet ever-increasing needs, many nonprofit
organizations will cease to exist for people in local
communities throughout the country.
(7) In order to meet the needs of the coronavirus pandemic
and drive recovery, many nonprofit organizations must innovate
and create new models of service delivery.
(8) More than 36,000,000 American workers lost their jobs
and filed for unemployment benefits in the 8 weeks following
March 15, 2020.
(9) Providing these newly unemployed workers the
opportunity to find employment at nonprofit organizations in
their local communities will benefit these workers, nonprofit
organizations, and the people these organizations serve.
SEC. 3. DEFINITIONS.
In this Act:
(1) Eligible nonprofit organizations.--The term ``eligible
nonprofit organization'' means an entity that is described in
section 501(c)(3) of the Internal Revenue Code of 1986 and
exempt from taxation under section 501(a) of such Code.
(2) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term ``Indian tribe'' in section 102 of the
Housing and Community Development Act of 1974 (42 U.S.C. 5302).
(3) Intermediary.--The term ``intermediary'' means a
national or regional nonprofit organization that provides
administrative and supportive services to its network of
affiliates, members, or branches, which may include pass-
through funding, training, and technical assistance.
(4) Local government.--The term ``local government'' has
the meaning given the term ``unit of local government'' in
section 102 of the Housing and Community Development Act of
1974 (42 U.S.C. 5302).
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(6) State.--The term ``State'' has the meaning given the
term in section 102 of the Housing and Community Development
Act of 1974 (42 U.S.C. 5302).
SEC. 4. ESTABLISHMENT OF WORK NOW GRANT PROGRAM.
The Secretary of the Treasury shall establish a program in
accordance with this Act to award grants for the purpose of providing
emergency relief to eligible nonprofit organizations, particularly
those organizations whose workers are serving public needs that have
increased as a result of the coronavirus pandemic and the attendant
economic crisis, by helping such organizations scale their services and
put unemployed individuals back to work serving their communities.
SEC. 5. GRANTS TO STATES, LOCAL GOVERNMENTS, AND INDIAN TRIBES.
(a) Formula.--
(1) In general.--The Secretary shall distribute 78 percent
of the amounts appropriated under section 10 as block grants to
States and local governments, based on a formula developed by
the Secretary that is consistent with the formula under section
106 of the Housing and Community Development Act of 1974 (42
U.S.C. 5306), for distribution through grants to eligible
nonprofit organizations.
(2) Indian tribes.--The Secretary shall distribute 2
percent of the amounts appropriated under section 10 as block
grants to Indian Tribes based on a formula developed by the
Secretary that is consistent with the formula for the Indian
Community Development Block Grant Program authorized under
title I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.), notwithstanding section 106(a)(1) of
such Act (42 U.S.C. 5306(a)(1)), for distribution through
grants to eligible nonprofit organizations.
(b) Applications.--An eligible nonprofit organization seeking a
grant from a State, local government, or Indian Tribe receiving funding
under subsection (a) shall submit an application to the State, local
government, or Indian Tribe at such time, in such manner, and
containing such information as the State, local government, or Indian
Tribe may reasonably require.
(c) Limitation on Grant Amounts.--In awarding grants under this
section, a State, local government, or Indian Tribe receiving funding
under subsection (a) shall have discretion to set the size of each
grant to an eligible nonprofit organization, except each such grant
shall not exceed $3,000,000.
(d) Selection.--A State, local government, or Indian Tribe
receiving funding under subsection (a), in awarding grants to eligible
nonprofit organizations, shall--
(1) give priority to such organizations that serve public
needs that have increased as a result of the coronavirus
pandemic and associated economic crisis, including--
(A) organizations that provide housing and
emergency shelter;
(B) organizations that provide food insecurity; and
(C) direct services organizations that provide
services to individuals in order to help them stabilize
their lives and find self-sufficiency through providing
for basic needs, such as housing, emergency shelter,
food, water, clothing, transportation, child care, and
out-of-school time youth service providers;
(2) give priority to such organizations located in rural
areas; and
(3) ensure that a significant proportion of such grants are
awarded to eligible nonprofit organizations that are able to
scale services quickly and hire new workers.
SEC. 6. GRANTS TO INTERMEDIARIES.
(a) In General.--The Secretary shall distribute 20 percent of the
amounts appropriated under section 10 through grants to intermediaries.
(b) Applications.--An intermediary seeking a grant under this
section--
(1) may seek such grant on behalf of--
(A) the intermediary;
(B) the network of affiliates, members, or branches
of the intermediary; or
(C) the intermediary and the network described in
subparagraph (B); and
(2) shall submit an application to the Secretary at such
time, in such manner, and containing such information as the
Secretary may reasonably require, including an assurance that
the intermediary has systems in place to disburse funds
efficiently.
(c) Grant Amounts.--
(1) In general.--Subject to paragraphs (2) and (3), in
awarding grants under this section, the Secretary shall have
the discretion to determine the amount of each grant.
(2) Limitation.--Subject to paragraph (3), a grant awarded
under this section shall not exceed $100,000,000.
(3) Additional funding for hiring new employees.--The
Secretary may award a grant under this section that exceeds the
maximum amount under paragraph (2), but does not exceed
$300,000,000, if the intermediary demonstrates in the
application under subsection (b) that the intermediary intends
to use the difference between the amount awarded through the
grant and the maximum amount under paragraph (2) for hiring
employees after the date of enactment of this Act.
(d) Selection.--In awarding grants under this section, the
Secretary shall--
(1) give the same priority to intermediaries as States,
local governments, and Indian Tribes are required to give to
eligible nonprofit organizations under section 5(d)(1);
(2) ensure that all intermediaries that receive grants
under this section are able to scale services quickly and hire
new workers; and
(3) give special consideration to intermediaries with a
history of dispersing funds, staffing that is sufficient to
ensure compliance, and a history of working with communities
most impacted by the coronavirus pandemic.
SEC. 7. USES OF FUNDS.
(a) Employee Compensation Costs.--
(1) In general.--Subject to paragraph (2), each eligible
nonprofit organization or intermediary receiving funding under
this Act (and any entity receiving funding through such
intermediary) shall (subject to subsection (c)) use not less
than 60 percent of the funds of the grant for employee
compensation costs, including--
(A) wages and salaries, not to exceed $50,000;
(B) benefits, including paid sick leave; and
(C) worker protections, including protective
personal equipment.
(2) Limitations.--
(A) In general.--The employee compensation costs
described in paragraph (1) shall, with respect to an
eligible nonprofit organization or intermediary
receiving funding under this Act (and any entity
receiving funding through such intermediary) that is
not described in subparagraph (B), shall only be for
employees hired after the date of enactment of this
Act, including any such employee with whom the
organization, intermediary, or entity has terminated
employment, or placed on furlough, at any time prior to
such date of enactment.
(B) Organizations in financial distress.--
(i) In general.--The employee compensation
costs described in paragraph (1) may, with
respect to an eligible nonprofit organization
or intermediary receiving funding under this
Act (and any entity receiving funding through
such intermediary) that is described in clause
(ii), be for employees described in
subparagraph (A) or employees who were hired
prior to the date of enactment of this Act.
(ii) Demonstration of financial distress.--
An eligible nonprofit organization or
intermediary receiving funding under this Act
(or any entity receiving funding through such
intermediary) is described in this clause if--
(I) the organization, intermediary,
or entity asserts in the application
submitted under section 5(b), or
section 6(b), as applicable, that the
use of such funds to pay employee costs
for employees hired prior to the date
of enactment of this Act is necessary
due to financial limitations resulting
from the coronavirus pandemic and
attendant economic crisis; and
(II) the State, local government,
or intermediary awarding the funds
agrees with the assertion under
subclause (I), considering such
criteria and under such procedures as
the Secretary may prescribe.
(3) Guidance on employee compensation.--The Secretary may
provide guidance on items that are included as employee
compensation under paragraph (1).
(b) Operating and Programmatic Costs.--Each eligible nonprofit
organization or intermediary receiving funding under this Act (and any
entity receiving funding through such intermediary) may use not more
than 40 percent of the funding to cover operating costs (such as rent,
utilities, insurance policies, and maintenance) and programmatic costs,
including costs associated with online service delivery.
(c) Innovative Models.--Any eligible nonprofit organization or
intermediary receiving a grant under this Act (and any entity receiving
funding through such intermediary) may use a portion of the funds
awarded through such grant for employee compensation costs under
subsection (a) to innovate and create new service delivery models to
meet the needs of the crisis resulting from the coronavirus pandemic.
SEC. 8. OVERSIGHT, SUPERVISION, AND REPORTS.
(a) In General.--The Secretary shall supervise the distribution of
funding under this Act to ensure that such funding is being used for
purposes consistent with the purposes of this Act.
(b) Sharing.--Each State, local government, or Indian Tribe that
receives funding under this Act shall submit to the Secretary a list of
all recipients of grants under this Act that were made by the State,
local government, or Indian Tribe. The Secretary shall make all such
lists publicly available.
(c) Oversight.--The Inspector General of the Department of the
Treasury shall conduct monitoring and oversight of the receipt,
disbursement, and use of funds made available under this Act in the
same manner as the Inspector General conducts monitoring and oversight
of the receipt, disbursement, and use of funds made available under
601(f) of the Social Security Act, as added by section 5001(a) of the
CARES Act (Public Law 116-136).
SEC. 9. TIMING AND PROGRAM DURATION.
(a) In General.--Not later than 30 days after the date of enactment
of this Act, the Secretary shall disburse funding to States, local
governments, and Indian Tribes under section 5.
(b) Grants to Eligible Nonprofit Organizations.--Not later than 60
days after receiving funding from the Secretary under section 5, each
State, local government, or Indian Tribe receiving such funding shall
award grants to eligible nonprofit organizations that apply for such
grants in accordance with such section.
(c) Intermediaries.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall disburse grants to
intermediaries that apply for a grant under section 6 in accordance
with such section.
SEC. 10. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this Act
$50,000,000,000 to remain available through the date that is 1 year
after the date on which such funds are appropriated.
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