Title: Protecting Nonprofits from Catastrophic Cash Flow Strain Act of 2020
Policy area: Labor and Employment

Summary:
Protecting Nonprofits from Catastrophic Cash Flow Strain Act of 2020
This bill permits certain governmental entities, federally recognized tribes, and nonprofit organizations to make up front payments of 50% of unemployment benefits into the state Unemployment Trust Fund (in lieu of contributions) to be used exclusively to reduce such payments resulting from the COVID-19 (i.e., coronavirus disease 2019) pandemic.
Currently, the Department of Labor issued guidance on April 27, 2020 (UIPL 18-20), requiring states to collect 100% of such payments up front and then reimburse them by 50% later.
In addition, the bill allows states to opt to issue such reimbursements or to reduce the amounts required to be paid for weeks of employment on or after March 13, 2020, and before enactment of this bill.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4001 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4001

   To amend title IX of the Social Security Act to improve emergency 
      unemployment relief for governmental entities and nonprofit 
                             organizations.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 18, 2020

Mr. Scott of South Carolina (for himself, Mr. Brown, Mr. Grassley, Mr. 
Wyden, Mr. Cornyn, Mr. Carper, Mr. Lankford, Mr. Casey, Mr. Perdue, and 
  Ms. Hassan) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend title IX of the Social Security Act to improve emergency 
      unemployment relief for governmental entities and nonprofit 
                             organizations.

    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 ``Protecting Nonprofits from 
Catastrophic Cash Flow Strain Act of 2020''.

SEC. 2. IMPROVING EMERGENCY UNEMPLOYMENT RELIEF FOR GOVERNMENTAL 
              ENTITIES AND NONPROFIT ORGANIZATIONS.

    (a) In General.--Section 903(i)(1) of the Social Security Act (42 
U.S.C. 1103(i)(1)) is amended--
            (1) in subparagraph (A), by striking ``during'' and 
        inserting ``with respect to'';
            (2) in subparagraph (B), by striking ``3309(a)(1)'' and 
        inserting ``3309(a)''; and
            (3) by striking subparagraph (C) and inserting the 
        following new subparagraph:
    ``(C) Notwithstanding any other provision of law, funds transferred 
to the account of a State under subparagraph (A) shall be used 
exclusively to reduce the amounts required to be paid in lieu of 
contributions into the State unemployment fund pursuant to such section 
by governmental entities and other organizations described in section 
3309(a) of such Code.''.
    (b) Effective Date.--
            (1) In general.--Subject to paragraph (2), the amendments 
        made by subsection (a) shall take effect as if included in the 
        enactment of section 2103 of the Relief for Workers Affected by 
        Coronavirus Act (contained in subtitle A of title II of 
        division A of the CARES Act (Public Law 116-136)).
            (2) Application to weeks prior to enactment.--For weeks of 
        unemployment that occurred on or after March 13, 2020, and 
        prior to the date of enactment of this section, States may--
                    (A) issue reimbursements in accordance with section 
                903(i)(1)(C) of the Social Security Act, as in effect 
                prior to the date of enactment of this section; or
                    (B) reduce the amounts required to be paid in 
                accordance with such section 903(i)(1)(C), as amended 
                by subsection (a).
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