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[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 740 Introduced in Senate (IS)]

<DOC>

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.

    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 employed more than 12,000,000 Americans 
        prior to the pandemic.
            (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) As of January 2021, more than 950,000 nonprofit 
        organization jobs have been lost during the pandemic, according 
        to the Johns Hopkins Center for Civil Society Studies.
            (10) 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, other than an 
        intermediary, 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 an 
        entity, described in section 501(c)(3) of the Internal Revenue 
        Code of 1986 and exempt from taxation under section 501(a) of 
        such Code, that is--
                    (A) a national or regional nonprofit organization 
                that operates in multiple locations throughout the 
                United States, or a region of the United States, as a 
                single legal entity and directly employs more than 500 
                employees; or
                    (B) 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 general 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 and 
intermediaries, particularly those organizations and intermediaries 
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 and intermediaries 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 public health or 
                patient and caregiver support services and are not 
                hospital organizations to which section 501(r) of the 
                Internal Revenue Code of 1986 applies;
                    (C) arts and cultural organizations;
                    (D) organizations that address food insecurity;
                    (E) organizations that provide supplemental 
                educational services to children, including tutoring, 
                social emotional development activities, and other 
                extracurricular activities to compensate for learning 
                loss and other disruptions due to the pandemic;
                    (F) 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; and
                    (G) organizations that serve rural areas; and
            (2) ensure that a significant proportion of such grants are 
        awarded to eligible nonprofit organizations that are able to 
        scale services quickly and hire back former employees and 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 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 until expended.
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