Statement on HEROES Act

Statement on HEROES Act

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Responding to the release of bill text of the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, David L. Thompson, Vice President of Public Policy for the National Council of Nonprofits, released the following statement:

“The HEROES Act contains many bipartisan reforms designed to fix flaws in the CARES Act and enable charitable nonprofits and faith-based organizations to provide more relief and recovery in communities throughout the country. Lawmakers from across the political spectrum are now aware that arbitrary size standards in the Paycheck Protection Program excluded too many vital nonprofit organizations that are poised to retain and even expand employment if they had access to needed resources. The HEROES Act would create a nonprofit track to ensure that frontline organizations receive the forgivable loans they need to provide essential services and put newly unemployed people back to work. These provisions would help nonprofits keep their doors open, their workforces intact, and most importantly, ensure their communities continue to have access to needed services.

“The bill also provides desperately needed emergency funding for targeted state formula grants and programs that can provide a rapid infusion of cash to nonprofit organizations that state and local governments hire to assist vulnerable families and frontline responders. This approach recognizes that people are relying on charitable nonprofits even more for relief, support, and care now, while the pandemic rages, and will need to be there moving forward as America recovers.

“We’re disappointed that this legislation does not improve charitable giving incentives to enhance the ability of nonprofits to address the skyrocketing demand for their services resulting from more than 33 million people losing their jobs. We are also concerned that technical corrections to a CARES Act unemployment insurance provision don’t go far enough to protect the thousands of organizations that self-insure in the unemployment system from having to pay out millions of dollars in benefits costs in the coming weeks and months when they can least afford it."

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