I 

116TH CONGRESS 

2D SESSION H. R. 7495 

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 HOUSE OF REPRESENTATIVES 

JULY 6, 2020 

Ms. SA ́NCHEZ (for herself, Ms. VELA ́ZQUEZ, Mrs. MCBATH, Mr. KILMER, Mr. 

BEYER, Ms. KUSTER of New Hampshire, Mr. POCAN, and Mr. SCHNEIDER) introduced the following bill; which was referred to the Committee 

on Financial Services 

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’’. 


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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 employ more than 

6 12,000,000 Americans. 

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 


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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) Providing these newly unemployed workers 

16 the opportunity to find employment at nonprofit or17 ganizations in their local communities will benefit 

18 these workers, nonprofit organizations, and the peo19 ple these organizations serve. 

20 SEC. 3. DEFINITIONS. 

21 In this Act: 

22 (1) ELIGIBLE NONPROFIT ORGANIZATIONS.— 

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

24 entity that is described in section 501(c)(3) of the 


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1 Internal Revenue Code of 1986 and exempt from 

2 taxation under section 501(a) of such Code. 

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

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

5 section 102 of the Housing and Community Devel6 opment Act of 1974 (42 U.S.C. 5302). 

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

8 means a national or regional nonprofit organization 

9 that provides administrative and supportive services 

10 to its network of affiliates, members, or branches, 

11 which may include pass-through funding, training, 

12 and technical assistance. 

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

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

15 of local government’’ in section 102 of the Housing 

16 and Community Development Act of 1974 (42 

17 U.S.C. 5302). 

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

19 the Secretary of the Treasury. 

20 (6) STATE.—The term ‘‘State’’ has the mean21 ing given the term in section 102 of the Housing 

22 and Community Development Act of 1974 (42 

23 U.S.C. 5302). 


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

2 The Secretary of the Treasury shall establish a pro3 gram in accordance with this Act to award grants for the 

4 purpose of providing emergency relief to eligible nonprofit 

5 organizations, particularly those organizations whose 

6 workers are serving public needs that have increased as 

7 a result of the coronavirus pandemic and the attendant 

8 economic crisis, by helping such organizations scale their 

9 services and put unemployed individuals back to work 

10 serving their communities. 

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

12 INDIAN TRIBES. 

13 (a) FORMULA.— 

14 (1) IN GENERAL.—The Secretary shall dis15 tribute 78 percent of the amounts appropriated 

16 under section 10 as block grants to States and local 

17 governments, based on a formula developed by the 

18 Secretary that is consistent with the formula under 

19 section 106 of the Housing and Community Devel20 opment Act of 1974 (42 U.S.C. 5306), for distribu21 tion through grants to eligible nonprofit organiza22 tions. 

23 (2) INDIAN TRIBES.—The Secretary shall dis24 tribute 2 percent of the amounts appropriated under 

25 section 10 as block grants to Indian Tribes based on 

26 a formula developed by the Secretary that is conVerDate Sep 11 2014 23:00 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7495.IH H7495

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1 sistent with the formula for the Indian Community 

2 Development Block Grant Program authorized 

3 under title I of the Housing and Community Devel4 opment Act of 1974 (42 U.S.C. 5301 et seq.), not5 withstanding section 106(a)(1) of such Act (42 

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

7 to eligible nonprofit organizations. 

8 (b) APPLICATIONS.—An eligible nonprofit organiza9 tion seeking a grant from a State, local government, or 

10 Indian Tribe receiving funding under subsection (a) shall 

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

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

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

14 Tribe may reasonably require. 

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

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

17 Indian Tribe receiving funding under subsection (a) shall 

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

19 nonprofit organization, except each such grant shall not 

20 exceed $3,000,000. 

21 (d) SELECTION.—A State, local government, or In22 dian Tribe receiving funding under subsection (a), in 

23 awarding grants to eligible nonprofit organizations, 

24 shall— 


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1 (1) give priority to such organizations that 

2 serve public needs that have increased as a result of 

3 the coronavirus pandemic and associated economic 

4 crisis, including— 

5 (A) organizations that provide housing and 

6 emergency shelter; 

7 (B) organizations that provide food insecu8 rity; and 

9 (C) direct services organizations that pro10 vide services to individuals in order to help 

11 them stabilize their lives and find self-suffi12 ciency through providing for basic needs, such 

13 as housing, emergency shelter, food, water, 

14 clothing, transportation, child care, and out-of15 school time youth service providers; 

16 (2) give priority to such organizations located 

17 in rural areas; and 

18 (3) ensure that a significant proportion of such 

19 grants are awarded to eligible nonprofit organiza20 tions that are able to scale services quickly and hire 

21 new workers. 

22 SEC. 6. GRANTS TO INTERMEDIARIES. 

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

24 percent of the amounts appropriated under section 10 

25 through grants to intermediaries. 


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

2 under this section— 

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

4 (A) the intermediary; 

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

6 branches of the intermediary; or 

7 (C) the intermediary and the network de8 scribed in subparagraph (B); and 

9 (2) shall submit an application to the Secretary 

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

11 information as the Secretary may reasonably re12 quire, including an assurance that the intermediary 

13 has systems in place to disburse funds efficiently. 

14 (c) GRANT AMOUNTS.— 

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

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

17 Secretary shall have the discretion to determine the 

18 amount of each grant. 

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

20 grant awarded under this section shall not exceed 

21 $100,000,000. 

22 (3) ADDITIONAL FUNDING FOR HIRING NEW

23 EMPLOYEES.—The Secretary may award a grant 

24 under this section that exceeds the maximum 

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


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1 $300,000,000, if the intermediary demonstrates in 

2 the application under subsection (b) that the inter3 mediary intends to use the difference between the 

4 amount awarded through the grant and the max5 imum amount under paragraph (2) for hiring em6 ployees after the date of enactment of this Act. 

7 (d) SELECTION.—In awarding grants under this sec8 tion, the Secretary shall— 

9 (1) give the same priority to intermediaries as 

10 States, local governments, and Indian Tribes are re11 quired to give to eligible nonprofit organizations 

12 under section 5(d)(1); 

13 (2) ensure that all intermediaries that receive 

14 grants under this section are able to scale services 

15 quickly and hire new workers; and 

16 (3) give special consideration to intermediaries 

17 with a history of dispersing funds, staffing that is 

18 sufficient to ensure compliance, and a history of 

19 working with communities most impacted by the 

20 coronavirus pandemic. 

21 SEC. 7. USES OF FUNDS. 

22 (a) EMPLOYEE COMPENSATION COSTS.— 

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

24 each eligible nonprofit organization or intermediary 

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1 ceiving funding through such intermediary) shall 

2 (subject to subsection (c)) use not less than 60 per3 cent of the funds of the grant for employee com4 pensation costs, including— 

5 (A) wages and salaries, not to exceed 

6 $50,000; 

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

8 (C) worker protections, including protective 

9 personal equipment. 

10 (2) LIMITATIONS.— 

11 (A) IN GENERAL.—The employee com12 pensation costs described in paragraph (1) 

13 shall, with respect to an eligible nonprofit orga14 nization or intermediary receiving funding 

15 under this Act (and any entity receiving fund16 ing through such intermediary) that is not de17 scribed in subparagraph (B), shall only be for 

18 employees hired after the date of enactment of 

19 this Act, including any such employee with 

20 whom the organization, intermediary, or entity 

21 has terminated employment, or placed on fur22 lough, at any time prior to such date of enact23 ment. 

24 (B) ORGANIZATIONS IN FINANCIAL DIS25 TRESS.— 


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1 (i) IN GENERAL.—The employee com2 pensation costs described in paragraph (1) 

3 may, with respect to an eligible nonprofit 

4 organization or intermediary receiving 

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

7 that is described in clause (ii), be for em8 ployees described in subparagraph (A) or 

9 employees who were hired prior to the date 

10 of enactment of this Act. 

11 (ii) DEMONSTRATION OF FINANCIAL

12 DISTRESS.—An eligible nonprofit organiza13 tion or intermediary receiving funding 

14 under this Act (or any entity receiving 

15 funding through such intermediary) is de16 scribed in this clause if— 

17 (I) the organization, inter18 mediary, or entity asserts in the appli19 cation submitted under section 5(b), 

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

21 use of such funds to pay employee 

22 costs for employees hired prior to the 

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1 sulting from the coronavirus pandemic 

2 and attendant economic crisis; and 

3 (II) the State, local government, 

4 or intermediary awarding the funds 

5 agrees with the assertion under sub6 clause (I), considering such criteria 

7 and under such procedures as the 

8 Secretary may prescribe. 

9 (3) GUIDANCE ON EMPLOYEE COMPENSA10 TION.—The Secretary may provide guidance on 

11 items that are included as employee compensation 

12 under paragraph (1). 

13 (b) OPERATING AND PROGRAMMATIC COSTS.—Each 

14 eligible nonprofit organization or intermediary receiving 

15 funding under this Act (and any entity receiving funding 

16 through such intermediary) may use not more than 40 

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

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

19 programmatic costs, including costs associated with online 

20 service delivery. 

21 (c) INNOVATIVE MODELS.—Any eligible nonprofit or22 ganization or intermediary receiving a grant under this 

23 Act (and any entity receiving funding through such inter24 mediary) may use a portion of the funds awarded through 

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1 section (a) to innovate and create new service delivery 

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

3 coronavirus pandemic. 

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

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

6 distribution of funding under this Act to ensure that such 

7 funding is being used for purposes consistent with the pur8 poses of this Act. 

9 (b) SHARING.—Each State, local government, or In10 dian Tribe that receives funding under this Act shall sub11 mit to the Secretary a list of all recipients of grants under 

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

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

14 publicly available. 

15 (c) OVERSIGHT.—The Inspector General of the De16 partment of the Treasury shall conduct monitoring and 

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

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

19 Inspector General conducts monitoring and oversight of 

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

21 under 601(f) of the Social Security Act, as added by sec22 tion 5001(a) of the CARES Act (Public Law 116–136). 

23 SEC. 9. TIMING AND PROGRAM DURATION. 

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

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


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1 funding to States, local governments, and Indian Tribes 

2 under section 5. 

3 (b) GRANTS TO ELIGIBLE NONPROFIT ORGANIZA4 TIONS.—Not later than 60 days after receiving funding 

5 from the Secretary under section 5, each State, local gov6 ernment, or Indian Tribe receiving such funding shall 

7 award grants to eligible nonprofit organizations that apply 

8 for such grants in accordance with such section. 

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

10 the date of enactment of this Act, the Secretary shall dis11 burse grants to intermediaries that apply for a grant 

12 under section 6 in accordance with such section. 

13 SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 

14 There is authorized to be appropriated to carry out 

15 this Act $50,000,000,000 to remain available through the 

16 date that is 1 year after the date on which such funds 

17 are appropriated. 

Æ 


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