Congress is set to pass a 2012 spending bill that offers mixed results to nonprofits worried that the budget scalpel could cut deeply into programs that benefit them or people in need. The $1-trillion legislation, agreed to last night by House and Senate negotiators in time to avert a government shutdown, cuts spending in some areas, including the arts, national service, and energy assistance for low-income people.
However, Senate Democrats were able to fend off the most radical cuts sought by House Republicans—for example, to eliminate AmeriCorps, stop giving federal money to public broadcasting, and allocate zero to the Promise Neighborhoods antipoverty project.
And while the legislation trims $1.1-billion from spending on education, health and human services, and labor—a budget category that offers many grants and contracts to nonprofits—the impact will be mixed. Some social-service and education programs managed to get increases in 2012, including Head Start and child-care grants.
Following is a sample of how Congress plans to allocate money for the 2012 fiscal year, which ends September 30, according to House Appropriations Committee numbers:
Arts and humanities. $146.3-million was awarded to each of the two federal agencies that provide grants to arts and cultural groups, down from just under $155-million last year
Child Care and Development Block Grants. $2.3-billion, an increase of $60-million from 2011. The program provides money to states to help pay for child-care services for low-income parents.
Community Health Centers. $1.6-billion, the same as last year. The centers, nonprofits that offer services to low-income people, will get an additional $1.2-billion under the health-care overhaul law.
Community Services Block Grants. $714-million, an increase of $12-million. Congress rebuffed President Obama’s proposal to halve the budget for this program, which helps a nationwide network of community-action agencies operate antipoverty projects—a plan he signaled in his State of the Union address last January
Corporation for Public Broadcasting. $445-million for the 2014 fiscal year, the same as for 2013 (budget allocations are made two years in advance). The Senate negotiators beat back a House Republican proposal to end federal spending on the agency, which provides grants to public radio and television broadcasters. However, Congressional negotiators asked the broadcasting agency to submit a report within 180 days on alternative revenue sources that could replace federal spending.
Corporation for National and Community Service. $1.05-billion, down about $25-million. The legislation also cuts $5-million from the Social Innovation Fund, which provides grants to help nonprofits expand effective programs, giving it just under $45-million.
Head Start, the early-childhood education program. $8-billion, an increase of $424-million.
Low-Income Home Energy Assistance Program, which helps poor families pay their heating and cooling bills. $3.5-billion, down $1.2-billion.
Planned Parenthood. Congressional negotiators rejected an effort by House Republicans to block federal money from going to Planned Parenthood.
Promise Neighborhoods. $60-million—up from just under $30-million. President Obama had hoped to increase spending to $150-million, but the increase means more money is available for nonprofits and foundations across the country that are setting up Promise Neighborhood projects, which offer a wide array of academic, medical, and social services to help children in troubled areas.