H.R.314 - Empowering Nonprofits Act (119th Congress)
Summary
H.R.314, the Empowering Nonprofits Act, mandates executive agencies to reduce cost-sharing requirements for certain grants to eligible nonprofit organizations by 25% for a period of five years. An eligible nonprofit is defined as one located in a state where over 20% of the population lives below the federal poverty line.
The bill aims to provide financial relief to nonprofits operating in high-poverty areas, enabling them to better serve their communities.
The Act defines key terms such as "eligible nonprofit organization," "executive agency," and "State" to ensure clarity and consistent application.
Expected Effects
The Act will likely result in increased funding availability for nonprofits in states with high poverty rates. This could lead to expanded services and programs offered by these organizations. It may also incentivize the formation of new nonprofits in these areas.
However, it could also place additional strain on executive agency budgets, potentially requiring reallocation of resources.
Potential Benefits
- Increased financial resources for nonprofits in high-poverty areas.
- Potential expansion of services and programs offered by these nonprofits.
- Possible stimulation of new nonprofit formation in underserved communities.
- Reduced administrative burden on nonprofits due to lower cost-sharing requirements.
- Enhanced ability of nonprofits to address local needs and improve community well-being.
Potential Disadvantages
- Potential strain on executive agency budgets, requiring resource reallocation.
- Possible reduction in grant funding for other areas or organizations not meeting the eligibility criteria.
- Risk of increased competition for grants among nonprofits.
- Potential for unintended consequences or misuse of funds due to reduced oversight.
- Administrative complexity in determining eligibility and implementing the cost-sharing reduction.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to support organizations that serve vulnerable populations. Article I, Section 8 grants Congress the power to collect taxes and provide for the general welfare of the United States.
However, the constitutionality could be debated if the Act disproportionately benefits certain states over others, raising concerns about equal protection.
The Act does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).