I 
117TH CONGRESS 
1ST SESSION H. R. 1987 
To help charitable nonprofit organizations provide services to meet the in-
creasing demand in community needs caused by the coronavirus pan-
demic, preserve and create jobs in the nonprofit sector, reduce unemploy-
ment, and promote economic recovery. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 17, 2021 
Ms. SA´NCHEZ (for herself, Mr. BEYER, Mr. KILMER, 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. 
Be it enacted by the Senate and House of Representa-
tives 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’’. 
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SEC. 2. FINDINGS. 
Congress finds as follows: 
(1) Charitable nonprofit organizations serve on 
our society’s frontlines in good times and bad. Col-
lectively, 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 re-
covery, communities throughout the United States 
will rely on nonprofit organizations more than ever 
to help more people in more challenging cir-
cumstances. 
(3) Nonprofit shelters, food banks, domestic vi-
olence 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 de-
creases 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 
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more precarious as American families conserve re-
sources in the face of the economic crisis. 
(6) Without immediate and longer-term re-
sources to keep their doors open to meet ever-in-
creasing 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 non-
profit 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 or-
ganizations in their local communities will benefit 
these workers, nonprofit organizations, and the peo-
ple these organizations serve. 
SEC. 3. DEFINITIONS. 
In this Act: 
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(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 Devel-
opment 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 organi-
zation 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 orga-
nization that provides administrative and sup-
portive services to its network of affiliates, 
members, or branches, which may include pass- 
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through funding, training, and technical assist-
ance. 
(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 mean-
ing 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 pro-
gram in accordance with this Act to award grants for the 
purpose of providing emergency relief to eligible nonprofit 
organizations and intermediaries, particularly those orga-
nizations 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. 
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SEC. 5. GRANTS TO STATES, LOCAL GOVERNMENTS, AND 
INDIAN TRIBES. 
(a) FORMULA.— 
(1) IN
GENERAL.—The Secretary shall dis-
tribute 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 Devel-
opment Act of 1974 (42 U.S.C. 5306), for distribu-
tion through grants to eligible nonprofit organiza-
tions. 
(2) INDIAN TRIBES.—The Secretary shall dis-
tribute 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 con-
sistent with the formula for the Indian Community 
Development Block Grant Program authorized 
under title I of the Housing and Community Devel-
opment Act of 1974 (42 U.S.C. 5301 et seq.), not-
withstanding 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 organiza-
tion seeking a grant from a State, local government, or 
Indian Tribe receiving funding under subsection (a) shall 
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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 In-
dian 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 sec-
tion 501(r) of the Internal Revenue Code of 
1986 applies; 
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(C) arts and cultural organizations; 
(D) organizations that address food insecu-
rity; 
(E) organizations that provide supple-
mental educational services to children, includ-
ing tutoring, social emotional development ac-
tivities, and other extracurricular activities to 
compensate for learning loss and other disrup-
tions due to the pandemic; 
(F) direct services organizations that pro-
vide services to individuals in order to help 
them stabilize their lives and find self-suffi-
ciency 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 organiza-
tions that are able to scale services quickly and hire 
back former employees and new workers. 
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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 de-
scribed 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 re-
quire, 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. 
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(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 inter-
mediary intends to use the difference between the 
amount awarded through the grant and the max-
imum amount under paragraph (2) for hiring em-
ployees after the date of enactment of this Act. 
(d) SELECTION.—In awarding grants under this sec-
tion, the Secretary shall— 
(1) give the same priority to intermediaries as 
States, local governments, and Indian Tribes are re-
quired 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. 
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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 re-
ceiving funding through such intermediary) shall 
(subject to subsection (c)) use not less than 60 per-
cent of the funds of the grant for employee com-
pensation 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 com-
pensation costs described in paragraph (1) 
shall, with respect to an eligible nonprofit orga-
nization or intermediary receiving funding 
under this Act (and any entity receiving fund-
ing through such intermediary) that is not de-
scribed 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 fur-
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lough, at any time prior to such date of enact-
ment. 
(B) ORGANIZATIONS
IN
FINANCIAL
DIS-
TRESS.— 
(i) IN GENERAL.—The employee com-
pensation costs described in paragraph (1) 
may, with respect to an eligible nonprofit 
organization 
or 
intermediary 
receiving 
funding under this Act (and any entity re-
ceiving funding through such intermediary) 
that is described in clause (ii), be for em-
ployees 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 organiza-
tion or intermediary receiving funding 
under this Act (or any entity receiving 
funding through such intermediary) is de-
scribed in this clause if— 
(I) 
the 
organization, 
inter-
mediary, or entity asserts in the appli-
cation submitted under section 5(b), 
or section 6(b), as applicable, that the 
use of such funds to pay employee 
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costs for employees hired prior to the 
date of enactment of this Act is nec-
essary due to financial limitations re-
sulting from the coronavirus pandemic 
and attendant economic crisis; and 
(II) the State, local government, 
or intermediary awarding the funds 
agrees with the assertion under sub-
clause (I), considering such criteria 
and under such procedures as the 
Secretary may prescribe. 
(3) GUIDANCE
ON
EMPLOYEE
COMPENSA-
TION.—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 or-
ganization or intermediary receiving a grant under this 
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Act (and any entity receiving funding through such inter-
mediary) may use a portion of the funds awarded through 
such grant for employee compensation costs under sub-
section (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 pur-
poses of this Act. 
(b) SHARING.—Each State, local government, or In-
dian Tribe that receives funding under this Act shall sub-
mit 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 De-
partment 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 sec-
tion 5001(a) of the CARES Act (Public Law 116–136). 
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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 ORGANIZA-
TIONS.—Not later than 60 days after receiving funding 
from the Secretary under section 5, each State, local gov-
ernment, 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 dis-
burse 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 ex-
pended. 
Æ 
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