Empowering Nonprofits Act

The Empowering Nonprofits Act would reduce the amount of money that nonprofit organizations must contribute when receiving federal grants. Under current rules, federal agencies often require nonprofits to share the cost of grants, meaning the organization must pay a portion while the government covers the rest. This bill would reduce that cost-sharing requirement by 25% for grants given directly to eligible nonprofits over a five-year period following enactment.

Eligible nonprofits would be those located in U.S. states, territories, or federally recognized Indian tribes where more than 20% of the population lives below the poverty line. The practical effect would be to make federal grant funding more accessible to nonprofits operating in economically disadvantaged communities, as these organizations would need to contribute less of their own resources to participate in federal grant programs. This bill is currently in committee and has not yet been voted on by the full House.