Nonprofit advocates hailed the House passage Wednesday of a $1.9 trillion pandemic relief bill that has the potential to lift millions of people out of poverty at a scale not seen since the New Deal.
The House passed the stimulus bill Wednesday, 220-211, and President Biden has said he will sign it.
The legislation expands a key loan program for nonprofits, boosts AmeriCorps funding, and enacts or expands several programs aimed at providing direct relief to individuals.
Independent Sector, an advocacy coalition of foundations and nonprofits, said the bill “contains important and hard-fought victories for the nonprofit sector and the people we serve during Covid-19 and these challenging economic times.”
However, the statement also complained that lawmakers omitted an expansion of the charitable deduction (see box at right) and said the Paycheck Protection Program is still far too restrictive.
Following is a summary of the key provisions of the bill that nonprofit advocates have been watching.
AmeriCorps
The bill includes nearly $1 billion in funding over three years for AmeriCorps to expand national-service programs to respond to the pandemic. That’s a big boost: AmeriCorps budgets in recent years have hovered around $1 billion a year.
The funding will be primarily directed to existing programs to increase the living allowances paid to AmeriCorps members and expand their ranks, though AmeriCorps officials are still sorting out the details.
Samantha Warfield, a spokeswoman for AmeriCorps, said the bill will provide “bold, targeted investments we need in order to support the administration’s top priority of providing immediate relief for the pandemic.” She added that AmeriCorps can expand quickly as soon as Biden signs the bill.
AnnMaura Connolly, head of Voices for National Service, a group that lobbies in support of national-service programs, said the bill’s provisions that increase the stipend paid to AmeriCorps members — which currently ranges from about $1,120 to $2,230 a month for AmeriCorps Vista members — will be crucial to expanding the economic appeal of national-service positions.
“While the language in the bill is not particularly directive, they do identify some priorities, and an important one is to increase the living allowance of those that serve, because it’s very hard to serve if you don’t have additional support,” said Connolly. “That’s very important from a diversity and equity perspective, and it will allow the corporation to put more boots on the ground and to fill gaps as they are needed.”
Jesse Colvin, CEO of Service Year Alliance, said the national-service provisions were a “monumental” first step for the Biden administration’s national-service plans.
“It will provide new, and previously out of reach, opportunities to young Americans who are eager to serve and sets the stage for President Biden, who has the opportunity to make service a cornerstone issue of his administration,” said Colvin in a statement.
The additional funding includes:
- $620 million for AmeriCorps’s state and national programs, which provide grants to local nonprofits to hire AmeriCorps members for designated projects.
- $148 million for the National Service Trust, a program that pays off some student loans for AmeriCorps alumni.
- $80 million boost for AmeriCorps Vista, which works with local nonprofits and governments on anti-poverty programs.
Expanded Loans for Nonprofits
Under a stimulus bill enacted in March 2020, nonprofits with 500 or fewer employees were eligible for forgivable Paycheck Protection Program loans of up to $10 million. The new stimulus bill expands that eligibility to nonprofits that operate at multiple locations as long as no more than 500 employees work at any single location, according to the National Council of Nonprofits.
Help for Nonprofits That Self-Insure Unemployment Benefits
The bill extends and expands help for nonprofits that self-insure unemployment benefits. Under previous stimulus legislation, the federal government covered half the costs of benefits provided to their laid-off employees. The new House bill would expand the reimbursement rate to 75 percent from April 1 through September 6.
Help for State and Local Governments
The bill will provide $350 billion for state, local, and tribal governments. Nonprofit advocates say the money will prevent states and local governments from delaying or cutting payments to charities that have service contracts with them.
Help for People in Poverty
The Center on Poverty and Social Policy at Columbia University estimates that the stimulus bill will reduce child poverty by nearly half, and nonprofit advocates say that will reduce demand on overburdened charities.
It provides $1,400 in direct payments to most Americans in addition to the $600 in aid provided in the December stimulus bill.
The bill also extends emergency unemployment benefits beyond their March expiration date to September 6 and increases the child tax credit.
It provides $20 billion in rental assistance plus $510 million for the FEMA Emergency Food and Shelter Program to support organizations that provide services to homeless people .
