Overview
Title
To require executive agencies to reduce cost-sharing requirements for certain grants with certain nonprofit organizations 25 percent, and for other purposes.
ELI5 AI
The bill, called the “Empowering Nonprofits Act,” wants to help certain nonprofit organizations by making it cheaper for them to get money from the government. For five years, they want to make these nonprofits pay 25% less when they ask for grants, but only if they are in places where lots of people are poor.
Summary AI
The bill, titled the “Empowering Nonprofits Act” (H.R. 314), aims to support eligible nonprofit organizations by reducing the cost-sharing requirements for grants by 25 percent. This reduction will be applicable for a duration of five years from the date the Act is enacted. The eligible nonprofits are those located in states where over 20 percent of individuals live below the federal poverty line. Additionally, the term "executive agency" is defined according to existing United States Code, and "nonprofit organization" refers to those described in specific sections of the Internal Revenue Code.
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AnalysisAI
General Summary of the Bill
The bill, known as the “Empowering Nonprofits Act,” is proposed legislation aimed at reducing the financial burden on certain nonprofit organizations. Specifically, it requires executive agencies to decrease cost-sharing requirements for eligible nonprofit organizations by 25 percent for grant funding. This reduction is set to last for a period of five years. Eligible nonprofits, as defined by the bill, are those situated in states where more than 20 percent of individuals live below the federal poverty line.
Summary of Significant Issues
The bill raises several significant issues. Firstly, the reduction in cost-sharing requirements could impose a greater financial burden on the federal government. This is because with nonprofits contributing less financially, the government may need to cover a larger share of costs, potentially impacting its budget allocations and fiscal stability.
Additionally, defining eligible organizations as those in states with high poverty rates could lead to ambiguities. Without a clear method to ascertain these criteria, determining which nonprofits qualify may become contentious and inconsistent.
The bill’s broad definition of a "State" incorporates varied entities, including territories and tribes. This could complicate the administration and eligibility criteria for grants, as different areas may have differing governance and fiscal needs.
Furthermore, the uniform application of the 25 percent reduction overlooks the varying levels of need and budget in different organizations. Nonprofits with relatively lower budgets or in states with different economic conditions might not benefit equitably from a flat reduction.
Finally, the text lacks detail on the broader implications of the “Empowering Nonprofits Act,” leaving room for uncertainty about its full impact on funding, beneficiaries, or provisions.
Impact on the Public and Specific Stakeholders
Broadly, the bill aims to benefit nonprofit organizations by easing their financial commitments when applying for grants. This could empower eligible nonprofits to allocate more of their resources toward their charitable missions rather than fundraising for cost-sharing purposes.
However, shifting more financial responsibility to the federal government may affect the broader public in terms of budget reallocations. This could lead to reduced funding for other public services or necessitate increased government spending.
In terms of stakeholders, nonprofits operating in states with high poverty levels are poised to benefit. These organizations might find it easier to secure and launch projects without the burden of matching a significant portion of the grant funding. Conversely, nonprofits in less impoverished states, which do not meet the eligibility criteria, may feel left out, sparking concerns over fair distribution and competitiveness.
Overall, while the bill serves a noble purpose of supporting nonprofits in economically distressed areas, its implementation and broader fiscal implications require careful examination to ensure equitable and sustainable outcomes.
Issues
The reduction of cost-sharing requirements by 25 percent for nonprofit organizations could increase the financial burden on the federal government, potentially affecting budget allocations and fiscal stability. This issue is covered in Section 2(a) of the bill.
The broad definition of 'State' includes a wide range of entities such as states, the District of Columbia, commonwealths, territories, possessions, and federally recognized tribes, which may complicate the administration and eligibility criteria for grants. This is highlighted in Section 2(b)(4).
The definition of 'eligible nonprofit organization' as those located in states with more than 20 percent of individuals living below the Federal poverty line may lead to ambiguities and challenges in determining eligibility, affecting fair distribution of grants. This issue is found in Section 2(b)(1).
The uniform application of a 25 percent reduction in cost-sharing requirements does not account for varying levels of need or budget constraints across different organizations or states, potentially leading to inequitable outcomes. This issue relates to Section 2(a).
The text lacks details about the contents and implications of the 'Empowering Nonprofits Act', making it difficult to assess the full scope and impact of the legislation on funding, beneficiaries, or provisions. This issue is noted in Section 1.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the bill states that the official short title of the act is the “Empowering Nonprofits Act.”
2. Reduction of cost-sharing requirements for grants Read Opens in new tab
Summary AI
The text outlines that for five years, federal agencies will lower the financial contribution required from eligible nonprofit organizations by 25% for grant funding. An "eligible nonprofit organization" is one situated in a state where over 20% of people live below the poverty line.