II 

117TH CONGRESS 

1ST SESSION S. 740 

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 

MARCH 11, 2021 

Ms. KLOBUCHAR (for herself, Mr. SCHATZ, Mr. WYDEN, Mr. BROWN, Mr. 

COONS, Ms. BALDWIN, Ms. DUCKWORTH, Mrs. FEINSTEIN, Mr. MARKEY, 

Mr. MERKLEY, Mr. BLUMENTHAL, Mr. CASEY, and Ms. SMITH) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Work Opportunities 

5 and Resources to Keep Nonprofit Organizations Well Act’’ 

6 or the ‘‘WORK NOW Act’’. 


pamtmann on DSKBC07HB2PROD with BILLS
2 

•S 740 IS

1 SEC. 2. FINDINGS. 

2 Congress finds as follows: 

3 (1) Charitable nonprofit organizations serve on 

4 our society’s frontlines in good times and bad. Col5 lectively, nonprofit organizations employed more 

6 than 12,000,000 Americans prior to the pandemic. 

7 (2) As the nation confronts the coronavirus 

8 pandemic and the attendant economic crisis and re9 covery, communities throughout the United States 

10 will rely on nonprofit organizations more than ever 

11 to help more people in more challenging cir12 cumstances. 

13 (3) Nonprofit shelters, food banks, domestic vi14 olence services, early childhood care and education 

15 centers, and after-school facilities are being called to 

16 feed, house, and care for the people whose lives have 

17 been disrupted by illness, job loss, and closures. 

18 (4) Charitable nonprofit organizations are being 

19 confronted by a combination of contradictory forces, 

20 exponentially increasing demand and devastating de21 creases in revenues. 

22 (5) At the same time that need is soaring, 

23 many nonprofit organizations are unable to host 

24 fundraising events, which threatens an essential 

25 source of revenue. Charitable giving has also become 


pamtmann on DSKBC07HB2PROD with BILLS
3 

•S 740 IS

1 more precarious as American families conserve re2 sources in the face of the economic crisis. 

3 (6) Without immediate and longer-term re4 sources to keep their doors open to meet ever-in5 creasing needs, many nonprofit organizations will 

6 cease to exist for people in local communities 

7 throughout the country. 

8 (7) In order to meet the needs of the 

9 coronavirus pandemic and drive recovery, many non10 profit organizations must innovate and create new 

11 models of service delivery. 

12 (8) More than 36,000,000 American workers 

13 lost their jobs and filed for unemployment benefits 

14 in the 8 weeks following March 15, 2020. 

15 (9) As of January 2021, more than 950,000 

16 nonprofit organization jobs have been lost during the 

17 pandemic, according to the Johns Hopkins Center 

18 for Civil Society Studies. 

19 (10) Providing these newly unemployed workers 

20 the opportunity to find employment at nonprofit or21 ganizations in their local communities will benefit 

22 these workers, nonprofit organizations, and the peo23 ple these organizations serve. 

24 SEC. 3. DEFINITIONS. 

25 In this Act: 


pamtmann on DSKBC07HB2PROD with BILLS
4 

•S 740 IS

1 (1) ELIGIBLE NONPROFIT ORGANIZATIONS.— 

2 The term ‘‘eligible nonprofit organization’’ means an 

3 entity, other than an intermediary, that is described 

4 in section 501(c)(3) of the Internal Revenue Code of 

5 1986 and exempt from taxation under section 

6 501(a) of such Code. 

7 (2) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

8 has the meaning given the term ‘‘Indian tribe’’ in 

9 section 102 of the Housing and Community Devel10 opment Act of 1974 (42 U.S.C. 5302). 

11 (3) INTERMEDIARY.—The term ‘‘intermediary’’ 

12 means an entity, described in section 501(c)(3) of 

13 the Internal Revenue Code of 1986 and exempt from 

14 taxation under section 501(a) of such Code, that 

15 is— 

16 (A) a national or regional nonprofit organi17 zation that operates in multiple locations 

18 throughout the United States, or a region of 

19 the United States, as a single legal entity and 

20 directly employs more than 500 employees; or 

21 (B) a national or regional nonprofit orga22 nization that provides administrative and sup23 portive services to its network of affiliates, 

24 members, or branches, which may include passVerDate Sep 11 2014 18:11 Apr 08, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S740.IS S740

pamtmann on DSKBC07HB2PROD with BILLS
5 

•S 740 IS

1 through funding, training, and technical assist2 ance. 

3 (4) LOCAL GOVERNMENT.—The term ‘‘local 

4 government’’ has the meaning given the term ‘‘unit 

5 of general local government’’ in section 102 of the 

6 Housing and Community Development Act of 1974 

7 (42 U.S.C. 5302). 

8 (5) SECRETARY.—The term ‘‘Secretary’’ means 

9 the Secretary of the Treasury. 

10 (6) STATE.—The term ‘‘State’’ has the mean11 ing given the term in section 102 of the Housing 

12 and Community Development Act of 1974 (42 

13 U.S.C. 5302). 

14 SEC. 4. ESTABLISHMENT OF WORK NOW GRANT PROGRAM. 

15 The Secretary of the Treasury shall establish a pro16 gram in accordance with this Act to award grants for the 

17 purpose of providing emergency relief to eligible nonprofit 

18 organizations and intermediaries, particularly those orga19 nizations and intermediaries whose workers are serving 

20 public needs that have increased as a result of the 

21 coronavirus pandemic and the attendant economic crisis, 

22 by helping such organizations and intermediaries scale 

23 their services and put unemployed individuals back to 

24 work serving their communities. 


pamtmann on DSKBC07HB2PROD with BILLS
6 

•S 740 IS

1 SEC. 5. GRANTS TO STATES, LOCAL GOVERNMENTS, AND 

2 INDIAN TRIBES. 

3 (a) FORMULA.— 

4 (1) IN GENERAL.—The Secretary shall dis5 tribute 78 percent of the amounts appropriated 

6 under section 10 as block grants to States and local 

7 governments, based on a formula developed by the 

8 Secretary that is consistent with the formula under 

9 section 106 of the Housing and Community Devel10 opment Act of 1974 (42 U.S.C. 5306), for distribu11 tion through grants to eligible nonprofit organiza12 tions. 

13 (2) INDIAN TRIBES.—The Secretary shall dis14 tribute 2 percent of the amounts appropriated under 

15 section 10 as block grants to Indian Tribes based on 

16 a formula developed by the Secretary that is con17 sistent with the formula for the Indian Community 

18 Development Block Grant Program authorized 

19 under title I of the Housing and Community Devel20 opment Act of 1974 (42 U.S.C. 5301 et seq.), not21 withstanding section 106(a)(1) of such Act (42 

22 U.S.C. 5306(a)(1)), for distribution through grants 

23 to eligible nonprofit organizations. 

24 (b) APPLICATIONS.—An eligible nonprofit organiza25 tion seeking a grant from a State, local government, or 

26 Indian Tribe receiving funding under subsection (a) shall 


pamtmann on DSKBC07HB2PROD with BILLS
7 

•S 740 IS

1 submit an application to the State, local government, or 

2 Indian Tribe at such time, in such manner, and containing 

3 such information as the State, local government, or Indian 

4 Tribe may reasonably require. 

5 (c) LIMITATION ON GRANT AMOUNTS.—In awarding 

6 grants under this section, a State, local government, or 

7 Indian Tribe receiving funding under subsection (a) shall 

8 have discretion to set the size of each grant to an eligible 

9 nonprofit organization, except each such grant shall not 

10 exceed $3,000,000. 

11 (d) SELECTION.—A State, local government, or In12 dian Tribe receiving funding under subsection (a), in 

13 awarding grants to eligible nonprofit organizations, 

14 shall— 

15 (1) give priority to such organizations that 

16 serve public needs that have increased as a result of 

17 the coronavirus pandemic and associated economic 

18 crisis, including— 

19 (A) organizations that provide housing and 

20 emergency shelter; 

21 (B) organizations that provide public 

22 health or patient and caregiver support services 

23 and are not hospital organizations to which sec24 tion 501(r) of the Internal Revenue Code of 

25 1986 applies; 


pamtmann on DSKBC07HB2PROD with BILLS
8 

•S 740 IS

1 (C) arts and cultural organizations; 

2 (D) organizations that address food insecu3 rity; 

4 (E) organizations that provide supple5 mental educational services to children, includ6 ing tutoring, social emotional development ac7 tivities, and other extracurricular activities to 

8 compensate for learning loss and other disrup9 tions due to the pandemic; 

10 (F) direct services organizations that pro11 vide services to individuals in order to help 

12 them stabilize their lives and find self-suffi13 ciency through providing for basic needs, such 

14 as housing, emergency shelter, food, water, 

15 clothing, transportation, child care, and out-of16 school time youth service providers; and 

17 (G) organizations that serve rural areas; 

18 and 

19 (2) ensure that a significant proportion of such 

20 grants are awarded to eligible nonprofit organiza21 tions that are able to scale services quickly and hire 

22 back former employees and new workers. 


pamtmann on DSKBC07HB2PROD with BILLS
9 

•S 740 IS

1 SEC. 6. GRANTS TO INTERMEDIARIES. 

2 (a) IN GENERAL.—The Secretary shall distribute 20 

3 percent of the amounts appropriated under section 10 

4 through grants to intermediaries. 

5 (b) APPLICATIONS.—An intermediary seeking a grant 

6 under this section— 

7 (1) may seek such grant on behalf of— 

8 (A) the intermediary; 

9 (B) the network of affiliates, members, or 

10 branches of the intermediary; or 

11 (C) the intermediary and the network de12 scribed in subparagraph (B); and 

13 (2) shall submit an application to the Secretary 

14 at such time, in such manner, and containing such 

15 information as the Secretary may reasonably re16 quire, including an assurance that the intermediary 

17 has systems in place to disburse funds efficiently. 

18 (c) GRANT AMOUNTS.— 

19 (1) IN GENERAL.—Subject to paragraphs (2) 

20 and (3), in awarding grants under this section, the 

21 Secretary shall have the discretion to determine the 

22 amount of each grant. 

23 (2) LIMITATION.—Subject to paragraph (3), a 

24 grant awarded under this section shall not exceed 

25 $100,000,000. 


pamtmann on DSKBC07HB2PROD with BILLS
10 

•S 740 IS

1 (3) ADDITIONAL FUNDING FOR HIRING NEW

2 EMPLOYEES.—The Secretary may award a grant 

3 under this section that exceeds the maximum 

4 amount under paragraph (2), but does not exceed 

5 $300,000,000, if the intermediary demonstrates in 

6 the application under subsection (b) that the inter7 mediary intends to use the difference between the 

8 amount awarded through the grant and the max9 imum amount under paragraph (2) for hiring em10 ployees after the date of enactment of this Act. 

11 (d) SELECTION.—In awarding grants under this sec12 tion, the Secretary shall— 

13 (1) give the same priority to intermediaries as 

14 States, local governments, and Indian Tribes are re15 quired to give to eligible nonprofit organizations 

16 under section 5(d)(1); 

17 (2) ensure that all intermediaries that receive 

18 grants under this section are able to scale services 

19 quickly and hire new workers; and 

20 (3) give special consideration to intermediaries 

21 with a history of dispersing funds, staffing that is 

22 sufficient to ensure compliance, and a history of 

23 working with communities most impacted by the 

24 coronavirus pandemic. 


pamtmann on DSKBC07HB2PROD with BILLS
11 

•S 740 IS

1 SEC. 7. USES OF FUNDS. 

2 (a) EMPLOYEE COMPENSATION COSTS.— 

3 (1) IN GENERAL.—Subject to paragraph (2), 

4 each eligible nonprofit organization or intermediary 

5 receiving funding under this Act (and any entity re6 ceiving funding through such intermediary) shall 

7 (subject to subsection (c)) use not less than 60 per8 cent of the funds of the grant for employee com9 pensation costs, including— 

10 (A) wages and salaries, not to exceed 

11 $50,000; 

12 (B) benefits, including paid sick leave; and 

13 (C) worker protections, including protective 

14 personal equipment. 

15 (2) LIMITATIONS.— 

16 (A) IN GENERAL.—The employee com17 pensation costs described in paragraph (1) 

18 shall, with respect to an eligible nonprofit orga19 nization or intermediary receiving funding 

20 under this Act (and any entity receiving fund21 ing through such intermediary) that is not de22 scribed in subparagraph (B), shall only be for 

23 employees hired after the date of enactment of 

24 this Act, including any such employee with 

25 whom the organization, intermediary, or entity 

26 has terminated employment, or placed on furVerDate Sep 11 2014 18:11 Apr 08, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S740.IS S740

pamtmann on DSKBC07HB2PROD with BILLS
12 

•S 740 IS

1 lough, at any time prior to such date of enact2 ment. 

3 (B) ORGANIZATIONS IN FINANCIAL DIS4 TRESS.— 

5 (i) IN GENERAL.—The employee com6 pensation costs described in paragraph (1) 

7 may, with respect to an eligible nonprofit 

8 organization or intermediary receiving 

9 funding under this Act (and any entity re10 ceiving funding through such intermediary) 

11 that is described in clause (ii), be for em12 ployees described in subparagraph (A) or 

13 employees who were hired prior to the date 

14 of enactment of this Act. 

15 (ii) DEMONSTRATION OF FINANCIAL

16 DISTRESS.—An eligible nonprofit organiza17 tion or intermediary receiving funding 

18 under this Act (or any entity receiving 

19 funding through such intermediary) is de20 scribed in this clause if— 

21 (I) the organization, inter22 mediary, or entity asserts in the appli23 cation submitted under section 5(b), 

24 or section 6(b), as applicable, that the 

25 use of such funds to pay employee 


pamtmann on DSKBC07HB2PROD with BILLS
13 

•S 740 IS

1 costs for employees hired prior to the 

2 date of enactment of this Act is nec3 essary due to financial limitations re4 sulting from the coronavirus pandemic 

5 and attendant economic crisis; and 

6 (II) the State, local government, 

7 or intermediary awarding the funds 

8 agrees with the assertion under sub9 clause (I), considering such criteria 

10 and under such procedures as the 

11 Secretary may prescribe. 

12 (3) GUIDANCE ON EMPLOYEE COMPENSA13 TION.—The Secretary may provide guidance on 

14 items that are included as employee compensation 

15 under paragraph (1). 

16 (b) OPERATING AND PROGRAMMATIC COSTS.—Each 

17 eligible nonprofit organization or intermediary receiving 

18 funding under this Act (and any entity receiving funding 

19 through such intermediary) may use not more than 40 

20 percent of the funding to cover operating costs (such as 

21 rent, utilities, insurance policies, and maintenance) and 

22 programmatic costs, including costs associated with online 

23 delivery. 

24 (c) INNOVATIVE MODELS.—Any eligible nonprofit or25 ganization or intermediary receiving a grant under this 


pamtmann on DSKBC07HB2PROD with BILLS
14 

•S 740 IS

1 Act (and any entity receiving funding through such inter2 mediary) may use a portion of the funds awarded through 

3 such grant for employee compensation costs under sub4 section (a) to innovate and create new service delivery 

5 models to meet the needs of the crisis resulting from the 

6 coronavirus pandemic. 

7 SEC. 8. OVERSIGHT, SUPERVISION, AND REPORTS. 

8 (a) IN GENERAL.—The Secretary shall supervise the 

9 distribution of funding under this Act to ensure that such 

10 funding is being used for purposes consistent with the pur11 poses of this Act. 

12 (b) SHARING.—Each State, local government, or In13 dian Tribe that receives funding under this Act shall sub14 mit to the Secretary a list of all recipients of grants under 

15 this Act that were made by the State, local government, 

16 or Indian Tribe. The Secretary shall make all such lists 

17 publicly available. 

18 (c) OVERSIGHT.—The Inspector General of the De19 partment of the Treasury shall conduct monitoring and 

20 oversight of the receipt, disbursement, and use of funds 

21 made available under this Act in the same manner as the 

22 Inspector General conducts monitoring and oversight of 

23 the receipt, disbursement, and use of funds made available 

24 under 601(f) of the Social Security Act, as added by sec25 tion 5001(a) of the CARES Act (Public Law 116–136). 


pamtmann on DSKBC07HB2PROD with BILLS
15 

•S 740 IS

1 SEC. 9. TIMING AND PROGRAM DURATION. 

2 (a) IN GENERAL.—Not later than 30 days after the 

3 date of enactment of this Act, the Secretary shall disburse 

4 funding to States, local governments, and Indian Tribes 

5 under section 5. 

6 (b) GRANTS TO ELIGIBLE NONPROFIT ORGANIZA7 TIONS.—Not later than 60 days after receiving funding 

8 from the Secretary under section 5, each State, local gov9 ernment, or Indian Tribe receiving such funding shall 

10 award grants to eligible nonprofit organizations that apply 

11 for such grants in accordance with such section. 

12 (c) INTERMEDIARIES.—Not later than 60 days after 

13 the date of enactment of this Act, the Secretary shall dis14 burse grants to intermediaries that apply for a grant 

15 under section 6 in accordance with such section. 

16 SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 

17 There is authorized to be appropriated to carry out 

18 this Act $50,000,000,000, to remain available until ex19 pended. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS