# Plain Language Summary: Empowering Nonprofits Act

This bill makes it easier for nonprofits in struggling communities to get federal grant money by reducing how much money they have to contribute themselves. When the government gives out grants, it typically requires organizations to pay a portion of the project costs upfront—this is called "cost-sharing." Under this bill, nonprofits located in states where more than 20 percent of people live below the poverty line would only have to pay 75 percent of what they normally would. In other words, if a nonprofit usually had to contribute $100,000 to match a federal grant, they'd only need to contribute $75,000 instead. This reduction would last for five years from when the bill becomes law.

The bill targets nonprofits in economically disadvantaged areas, which means organizations like food banks, homeless shelters, community health centers, and educational programs in poorer states would benefit. The idea is that nonprofits in these areas often struggle to find local funding to match federal grants, so reducing their financial burden makes it more feasible for them to apply for and receive federal support. This could help these organizations expand their services or start new programs that help their communities.

The bill applies to grants given directly by federal agencies to nonprofits, and it only affects organizations that qualify as tax-exempt nonprofits under federal law. States and territories with higher poverty rates—including places like Mississippi, Louisiana, West Virginia, and others—would see their nonprofits benefit from this reduced cost-sharing requirement. The practical effect is that nonprofits in these areas would have more resources available to actually do their work rather than spending those resources just to qualify for federal funding.

Empowering Nonprofits Act

Radewagen, Aumua Amata Coleman

Empowering Nonprofits ActThis bill reduces cost-sharing requirements for grants directly awarded to certain nonprofit organizations for the five years following the bill's enactment. Eligible nonprofit organizations are those located in a U.S. state (including the District of Columbia or a U.S. commonwealth, territory, or possession) or federally recognized Indian tribe that has more than 20% of individuals living below the poverty line.Specifically, the bill requires an executive agency, during that time frame, to reduce any cost-sharing requirement by 25% for grants made directly to an eligible nonprofit.