WASHINGTON – U.S. Senator Martin Heinrich (D-N.M.) and a group of 27 senators are urging Senate leadership to include additional emergency funding for nonprofit organizations in the next COVID-19 relief bill. Nonprofits are an essential part of the frontline coronavirus pandemic response, providing important social services such as nutrition assistance, shelter for those experiencing homelessness, child care and education programs, and care for victims of domestic and sexual violence.
“During this public health crisis, communities nationwide are relying on nonprofit services to survive,” wrote the senators. “As we draft legislation both to mitigate and recover from this pandemic, we must give nonprofits the support they need to lead their communities out of this crisis.”
While demand for nonprofit services is increasing, these organizations are facing significant economic hardship. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided $350 billion in partially forgivable loans to small businesses and nonprofits, but this funding ran out within weeks. The $310 billion in new funding for this loan program passed by Congress last week is also expected to quickly run dry. Rather than requiring nonprofits to compete for limited resources with small businesses, the senators are calling for a significant increase in funding specifically for nonprofits.
The letter was also endorsed by 53 organizations, including the National Council of Nonprofits, Boys & Girls Clubs of America, Meals on Wheels, YWCA USA, YMCA of the USA, and National Health Council. For a full list, click here.
Read the full text of the letter below or by clicking here.
Dear Leader McConnell, Leader Schumer, Chairman Shelby, and Vice Chairman Leahy:
As you work on the next legislative package to address the novel coronavirus (COVID-19) pandemic, we strongly encourage you to ensure that nonprofits are protected by including additional emergency funding. Nonprofits provide essential social services for many Americans, including food, shelter, and medical services. During this public health crisis, communities nationwide are relying on nonprofit services to survive—more and more each day. At the same time as this increased demand, nonprofits are facing significant economic hardship.
Providing the nonprofit sector increased emergency funding for targeted state formula grants and programs will ensure that national and local organizations can maintain a continuity of services. These funds must be distributed quickly through multiple existing funding streams, including emergency grants to nonprofits operating under existing federal grants, as well as through sub-grantees for state or local governments, or other pass-through entities.
For example:
These are a few of the existing funding streams that the next coronavirus package should support with an increase in appropriations to meet an immediate need. The Coronavirus Aid, Relief, and Economic Security Act was a positive first step to aid the nonprofit sector. The nonprofit community will continue to play an essential role in coronavirus response, and we need them to scale up and meet an increase in demand. A rapid infusion of funds to nonprofit organizations that are partnering with state and local governments will help frontline responders and vulnerable families.
As we draft legislation both to mitigate and recover from this pandemic, we must give nonprofits the support they need to lead their communities out of this crisis. Thank you for your consideration of this request.
Sincerely,