House Committee Approves Bill to Support Nonprofits

Legislation would distribute $35 million from the transformative Economic Recovery and Relief Funds to support nonprofits serving communities disproportionately impacted by the pandemic

DENVER, CO –  The House Transportation & Local Government Committee today passed a bill that would boost funding for community-based nonprofit social service organizations, specifically those that provide critical support to communities disproportionately impacted by the pandemic.

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“During the pandemic, our nonprofits went above and beyond to provide necessary resources and services to their communities, it’s time they receive extra support,” said Rep. Leslie Herod, D-Denver. “This bill directs $35 million in pandemic recovery funds to our nonprofits so they can continue to positively impact our neighbors and build stronger communities. We’re thankful for our nonprofits and we’re proud to provide them with support to keep their doors open and serve our communities in need.”

“Nonprofits are at the heart of nearly every community, but many of them are struggling to stay afloat,” said Rep. Edie Hooton, D-Boulder. “Our legislation invests in local nonprofits, many of which stepped up to provide food service, youth resources and COVID emergency information, during the pandemic. When the world came to a halt, Colorado’s nonprofits worked tirelessly to meet the needs of their community and I’m proud to sponsor legislation that supports their efforts.”

HB22-1356, sponsored by Representatives Leslie Herod and Edie Hooton, will provide $35 million in federal pandemic relief funds to nonprofit social service organizations that have been disproportionately impacted by the pandemic. Small community-based nonprofits have played an important role in delivering critical services to families and communities that were directly impacted by the pandemic. These organizations continue to fill critical gaps, but face significant challenges as they respond to longstanding community needs that were only exacerbated by the pandemic. HB22-1356 passed committee by a vote of 10-3.

Financial constraints often limit these organizations’ ability to serve additional Coloradans and those constraints are more challenging under recent economic conditions.

The grants are designed to support small community-based nonprofits that largely serve individuals who were disproportionately impacted by the pandemic and experienced significant financial pressures. Eligible entities will be able to apply for grants as large as $100,000 to expand program capacity, foster professional development for employees or engage in strategic planning to grow their organization and maximize the use of funds.

During the 2021 legislative session, the General Assembly set aside $700 million in federal pandemic relief funds to use for economic recovery and relief initiatives in the years ahead. This legislation uses $35 million of this funding to support essential organizations that are doing critical work in Colorado communities to help families recover from the pandemic.