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House of Representatives
Session of 2019 - 2020 Regular Session


Posted: July 14, 2020 09:18 AM
From: Representative Natalie Mihalek
To: All House members
Subject: Nonprofit Economic Emergency Delivery System (NEEDS) Grants Program
I plan to introduce legislation establishing a grant program to support the Commonwealth's human services ecosystem. Referred to as the Nonprofit Economic Emergency Delivery System (“NEEDS”) Grants Program, this program will focus on the more than 8,500 nonprofit organizations that provide critical services for our State's most vulnerable population(s) while employing a significant percentage of our PA workforce. 
As a result of the COVID-19 pandemic, our nonprofit human services delivery system has been working tirelessly to meet critical needs and keep up with demand all while their revenue has been squeezed. Nearly eighty percent of nonprofit revenue comes from government grants or contracts and fees for service. With fundraising events being canceled and donor, foundation and government support drying up, many nonprofits are struggling for survival while our Commonwealth relies on them, now more than ever, to continue providing services to the most vulnerable Pennsylvanians. If these organizations fail, there would not be a way to provide critical services such as food, shelter, medical treatment, childcare, workforce training, etc. 
As we all know COVID-19 has intensified many social issues that were prevalent before the pandemic. The number of families and individuals who are impacted by this crisis rises daily. We must meet that need and create more capacity in this sector, not less. The increased demand for services already seen across the Commonwealth is clear evidence that we need to protect our over 8,500 nonprofit human services providing organizations now or risk forsaking our most vulnerable populations and contributing to further unemployment during one of the most challenging times in our country’s history. 
This legislation would establish a statewide competitive grant program for eligible community-based human services nonprofit organizations (i.e., childcare centers, domestic violence centers, early intervention service providers, food banks, alternative education providers, organizations serving individuals with intellectual and/or developmental disabilities, etc.) that were impacted by the COVID-19 crisis either by closure, increased service delivery or loss of revenue. Under this proposal, $200 million in the COVID-19 Response Restricted Account would be transferred to the Commonwealth Financing Authority to provide grants to these nonprofit organizations. Maximum allowable grants shall not exceed $500,000 per eligible non-profit organization.
Please join me in cosponsoring this legislation which will direct federal CARES Act funding to support these essential human services nonprofit organizations that help meet critical needs in communities across the Commonwealth every single day.  

Introduced as HB2740