Empowering Nonprofits Act

House Votes

This proposal makes it easier for certain nonprofits to win and use federal grants by lowering how much of their own money they must chip in. For five years after it becomes law, federal agencies must cut the “cost-sharing” amount by 25% for qualifying nonprofits. Cost-sharing is the part of a grant that a nonprofit must cover itself, like matching funds.

Only nonprofits in places with very high poverty rates qualify. To be eligible, a nonprofit must be a 501(c)(3) and be located in a state, territory, D.C., or federally recognized Tribe where more than 20% of people live below the federal poverty line. The 25% reduction applies to grants made directly to those nonprofits by executive agencies.

• Who is affected: 501(c)(3) nonprofits in areas where over 20% of residents live in poverty.
• What changes: Their required match or cost share on federal grants is cut by 25%.
• When: For the five years after the law takes effect.