Last weekend, after weeks of negotiation, Speaker of the House Kevin McCarthy (R-Calif.) and President Joe Biden agreed to a deal, in principle, regarding the debt ceiling and the federal budget. Bipartisan majorities in the House of Representatives and the Senate voted in favor of the bill, which was then signed into law by President Biden on Saturday. The bill suspends the debt ceiling until 2025, after the next presidential election, in addition to freezing nonmilitary discretionary spending for fiscal year 2024 and granting a one percent increase in 2025. Both sides conceded they did not get everything they wanted, but, given the makeup of Congress and the occupant in the White House, a compromise was necessary to avert default and economic catastrophe.

Here are some of the bill’s major takeaways of interest to the social sector community:

The legislation introduces new work requirements on older recipients of the Supplemental Nutrition Assistance program (SNAP), or food stamps. Adults ages 50-54 without dependents will now be required to work or volunteer 80 hours per month. Previously, the work requirement was capped at age 49. The bill, however, exempts veterans, homeless people, and young adults aging out of foster care from work requirements. Though the White House claims these exemptions will result in the same amount of people being eligible for food stamps, poverty advocates say the new requirements will leave many adults worse off. The bill also incorporates stricter work participation requirements in the Temporary Assistance for Needy Families (TANF) program.

The compromise also terminates the pandemic-induced pause on student loan repayments and interest at the end of Aug., though it does not touch President Biden’s student loan forgiveness program, which is currently under consideration by the Supreme Court. Additionally, it rescinds $10 of $80 billion the Internal Revenue Service (IRS) received through the Inflation Reduction Act last year, though much of that money will be repurposed to offset the cuts to nondiscretionary spending. Furthermore, the bill claws back $30 billion of unspent COVID-19 relief funds, but it does not impact the State and Local Fiscal Recovery Funds which many nonprofits have relied upon.

Key Hearing Takeaways: Solving the Child Care Crisis: Meeting the Needs of Working Families and Child Care Workers

On Wed., May 30, the Senate Committee on Health, Education, Labor, and Pensions held a hearing entitled “Solving the Child Care Crisis: Meeting the Needs of Working Families and Child Care Workers.” Although the data is incomplete, evidence suggests pandemic relief funds allowed states to stabilize child care industries and improve accessibility for families; however, discussion of extending or expanding these programs amid the federal debt negotiation was contentious.

Key Hearing Takeways

Committee Chairman Bernie Sanders (D- VT) opened the hearing by calling out the nation’s “broken and dysfunctional childhood system.” He emphasized the high cost of child care, citing a survey showing 40 percent of parents in America have gone into debt to pay for it. Additionally, he highlighted the difficulty American parents face even in finding an available slot for daycare services as well as the low wages, or “starvation wages,” child care providers earn. Sanders also addressed the negative economic result of this crisis, stating there are hundreds of thousands of people, primarily women, who would like to join the workforce but cannot do so without accessible and affordable childcare. He concluded that while the American Rescue Plan was important progress, Congress needs to do more than just renew this funding; it needs a vision for the future in which every American family has access to high-quality, affordable health care and child care workers are given the wages they deserve.

Ranking Member Bill Cassidy (R- LA) began by acknowledging child care in America is far too expensive for many families while disagreeing that an increase in federal funding is the appropriate solution. Cassidy centered his argument around the theme: “Don’t just do something, think,” pointing out the Government Accountability Office will not be able to report on how federal child care funding has been spent for several years, and there is still $18 billion in COVID-19 relief funds that has not yet been spent. Additionally, Cassidy reminded the committee that American parents do not want a one-size-fits-all approach to child care, as 51 percent prefer informal child care over formal. He also contends it is ironic to discuss a $600 billion “government-run institutionalized child care system” while the federal government is potentially days away from defaulting on its debt.

The first witness, Elizabeth Groginsky, New Mexico’s first Early Childhood Education and Care Department Cabinet Secretary, attested to the success of New Mexico’s use of federal funding to save the child care industry from collapse during the pandemic and create a high-quality, equitable, and affordable child care system. As one of only several states to create a cabinet secretary position and state agency for early childhood programs, New Mexico was able to stabilize the child care industry, increase employee compensation, reduce cost, and expand access. The popular program was implemented using federal pandemic relief funds, and Groginsky warned that continued federal investment is necessary to maintain the transformational gains her state achieved.

Lauren Hogan, Managing Director of Policy and Professional Advancement for the National Association for the Education of Young Children, explained the child care crisis by relating it to a deep hole in the ground surrounded by quicksand, in which parents and educators are standing on the edge, struggling to build a bridge across the chasm where public funding should be. Hogan explained child care is an example of market failure; neither families nor educators can absorb the true cost, leaving parents paying more for child care than college tuition and educators making poverty-level wages. She suggested relief funds stabilized the sand around this hole, but as these grants end, the cost will be passed to families and providers, who will be forced to increase costs, cut wages, and serve fewer children. She ended her statement by stating “The hole is deep, the quicksand is strong, and parents and educators can’t build the bridge alone. Thankfully, we know federal investments in child care work, and Congress must make them before it’s too late”.

Cheryl Morman, Family Care Provider and President of the Virginia Alliance for Family Child Care Associations, detailed the challenges of owning a family child care business and the relief provided by federal funding during the pandemic. Mormon was able to continue to provide care throughout the pandemic due to stabilization funds, with six of the eleven families in her care receiving financial assistance to subsidize care. She attested relief funding was critical to saving the child care industry, her own business included, but more is needed. For instance, she has vacant spots she could fill if she were to hire another employee, but she is not able to offer a wage that qualified employees will accept.

Carrie Lukas, President of the Independent Women’s Forum, argued American parents want choices when it comes to child care, not a “one size fits all government daycare regime,” and many Americans are satisfied with the child care arrangements they currently have. Lukas warned against day care centers operating like the K-12 system, contending that debates over curriculums, pronouns, sex-ed, and masking policies will soon be a part of American preschools if the government becomes the primary funder. Instead, Lukas believes the government should make child care more affordable by eliminating regulations not directly related to safety and quality of care and financially support families through tax relief or direct support to parents that is not conditional on whether the family pays for child care.

Kathryn Larin, Director in Education, Workforce, and Income Security in the Government Accountability Office explained what is currently known about how federal relief funds have been used by states and when more data will be available. Of the $52.5 billion allotted for pandemic relief child care funds and flexibilities, about $34.5 billion has been spent by states. Most of the funds, about $11.7 billion, were allocated through the American Rescue Plan, meaning states have until Sept. of 2024 to spend it. The rest must be spent by Sept. of 2023. There is some evidence these funds were successful at stabilizing child care industries, although state officials did face challenges in adapting their subsidy programs quickly after such a large increase in funding. Because not all the funding has been spent and because of significant lags in reporting of data, a full account of how funding was used will not be available until 2025 or 2026.

Following the witness statements, many Democrats called on Secretary Groginsky, Ms. Hogan, and Ms. Morman to affirm the need for increased federal funding for child care. Secretary Groginsky reemphasized the popularity and success of New Mexico’s program. She also expanded on details of the program and clarified families now have more choices than ever, and there is not a “one size fits all” approach as was suggested by Ms. Lukas and several Republican Senators. Ms. Hogan emphasized the need for federal funding to assist parents and educators and explained the failure of the market that necessitates such intervention. Ms. Morman expressed the importance of access to home-based care for all Americans, particularly families in rural areas, low-income families, and families of color.

Several Republican Senators called on Ms. Lukas, who expressed concern about federal funding, pointing to the cost of government programs and threats to religious education, as well as worries that preschools will function similarly to the K-12 system and that parents will be disincentivized from staying at home with their children. The discussion of curriculum was raised by Republican Senator Mullin, who read passages from a book entitled Our Skin: A First Conversation on Race and a lyric from the song “Jesus loves the Little Children,” and asked several of the witnesses which was better to teach. Senator Cassidy also raised concerns about curriculum, asking Ms. Hogan if she formally recommends educators tell parents about the content of material introducing children to the concept of “transgenderism.”

Amidst contentious partisan debate, including several interruptions of Senators and witnesses as well as Senator Mullin stating he is baffled Senator Sanders was chosen as the Committee Chair as a “self-proclaimed socialist,” Alaskan Republican Senator Murkowski seemed to agree federal funding was necessary to increase access to child care. Murkowski pointed out the lack of access to child care was not simply a workforce issue, but a military readiness issue as well, explaining the Coast Guard informed her they are struggling to remain in Alaskan communities without child care.

Senator Sanders concluded the hearing by reiterating the points from his opening statement, saying “I don’t think it’s too much to ask that in the richest country in the history of the world, all of our children, no matter where they live, no matter what their background is, get the quality child care and early childhood education they need in order to flourish later in life. I don’t think that’s a radical, socialistic, if you like, statement. I think that’s something that the vast majority of the American people believe in.”

Momnibus Bill Introduced

On Mother’s Day, May 15, Reps. Lauren Underwood (D-IL), Alma Adams (D-NC), and Sen.Cory Booker (D-NJ) introduced the Black Maternal Health Momnibus Act of 2023, the most comprehensive legislation to tackle the appallingly high rate of maternal mortality in the United States. The United States has the highest rate of maternal mortality in the developed world, and the rate has increased by 89% in recent years, according to the Centers for Disease Control and Prevention. The Momnibus Act would commit over one billion dollars to ensure all mothers have the support and resources they need to be safe and healthy. Among other things, the legislation would address the social determinants of health that affect maternal health outcomes, including housing and transportation. It would also make the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) accessible during the postpartum and breastfeeding periods. Community based organizations that work with mothers would obtain new funding, and the perinatal workforce would receive funds to grow and diversify. Finally, the bill would put more emphasis on data collection and quality to ensure informed decision making and policy in the future. 181 members of the House of Representatives have endorsed the bill, as well as 200 organizations.

New Federal Housing Initiative Announced

On May 18, the Biden-Harris administration announced the launch of ALL INside, an initiative of All In: The Federal Strategic Plan to Prevent and End Homelessness, with the goal to decrease homelessness by 25 percent by 2025. The ALL INside initiative will coordinate efforts between the U.S. Interagency Council on Homelessness, its 19 federal member agencies as well as state and local governments, including Chicago, Dallas, Los Angeles, Phoenix Metro, Seattle, and the state of California. The initiative will send one federal official to each community to ensure coordination with local officials on federal programs as well as to identify regulatory flexibilities and advance best practices. ALL INside will leverage Medicaid housing support and behavioral health care, as well as rental assistance and housing programs in the Department of Housing and Urban Development. It will also engage other agencies, including the Social Security Administration, the Department of Veterans Affairs, and the Department of Labor to speed the transition to permanent housing and provide wrap-around services. ALL INside builds upon the administration’s past efforts to tackle homelessness, including the historic investments made in the American Rescue Plan.

New Study Shows the Futility of TANF Work Requirements

A new study from the Center on Poverty and Social Policy at Columbia University shows that strengthening work requirements in the Temporary Assistance for Needy Families (TANF) program – one of the key pillars of the budget deal reached this week – could cost society up to $30 billion per year, rather than reduce the budget. In the negotiations, the House GOP caucus, led by Speaker of the House Kevin McCarthy (R-Calif.), pushed to decrease the debt by enforcing stricter work requirements in numerous federal benefits programs, including TANF, Medicaid, and food stamps. The study illustrates, however, that the TANF work requirements could lead to loss of benefits, which in the short and long-term carry immense social costs. Specifically, each dollar lost in TANF benefits translates into eight dollars in societal costs per year, in the form of increased spending on children’s health and child protective services, as well as decreased tax receipts from children’s future earnings. The exact number of families that will lose access to TANF is unclear at this point; however, the study offers numerous estimates. If 25 percent of families lose monthly TANF cash benefits, the economic and social costs could amount to $7.4 billion per year; if 50 percent lose benefits, the cost could equal $15 billion per year. At worst, the cost could rise to $29.6 billion per year if states cut TANF benefits to all families over strict work requirements.

Subscribe to the Policy and Advocacy Radar to receive our biweekly policy roundup, which includes commentary on issues in Social Current’s federal policy agenda, opportunities to take action, and curated news and opportunities.

After repeated warnings from the Treasury Department that the federal government could run out of money and default on its debts as soon as June 1, lawmakers are scrambling to come up with a deal to keep the government solvent. In exchange for raising the debt ceiling, Speaker of the House Kevin McCarthy (R-Calif.) and the House GOP caucus insist the president agree to spending cuts for fiscal year 2024 – a non-starter, according to the president. However, given the prospect of a default, top staffers of McCarthy and President Joe Biden are working around the clock to come up with a compromise, with both sides hinting progress has been made. The outline of a potential deal revolves around the following issues:

An agreement on top-line spending numbers for fiscal year 2024 must be reached; however, members of both parties are opposed to decreasing portions of the discretionary budget, including military, environmental, and health care spending. Unspent funds of approximately $56 billion, according to the Congressional Budget Office, from previous COVID-19 packages are on the table for clawbacks, risking money already allocated to economic assistance. While Biden says he will not consider any changes to Medicaid access, McCarthy is pushing to include new work requirements for benefits programs, including Medicaid, food stamps, and TANF. Finally, members of both parties support reform to the permitting process for energy and other projects, but disagreements remain over the details.

President Biden cut his trip to Japan for the G7 meeting short so he could be back in Washington, D.C. to finalize the deal early this week.

HHS Reveals New Website to Find Mental Health Resources

The Department of Health and Human Services (HHS) launched a new website, FindSupport.gov, to help the public find resources and treatment for challenges related to mental health, drugs, or alcohol. The website offers visitors information on coping strategies, types of treatment, ways to help others, and payment options for treatment. The Substance Abuse and Mental Health Services Administration and the Centers for Medicare and Medicaid Services partnered to create the website after research showed the public sought a reliable and objective resource for dealing with mental health and substance use issues. Over the course of the project, HHS engaged 50 subject matter experts and collected feedback from people of all races, ethnicities, genders, education levels, and ages. FindSupport.gov is another national resource in addition to SAMHSA’s national helpline, 1-800-662-HELP, and the 988 Suicide and Crisis Lifeline. According to SAMHSA, almost one in three adults suffer from mental health and/or substance use isues.

New Fact from HHS on the End of the Public Health Emergency

To mark the end of the public health emergency (PHE) on May 11, 2023, the Department of Health and Human Services (HHS) released a new fact sheet called “End of the COVID-19 Public Health Emergency,” which details what will stay the same and changes to occur after over three years of the COVID-19 pandemic. In the fact sheet, the administration touted its accomplishments: 270 million people who received at least one dose of the vaccine as well as 750 million free COVID-19 tests, among other things. Since Jan. 2021, COVID-19 deaths are down by 95 percent and hospitalizations have decreased by 91 percent. With the end of the PHE, HHS says certain factors will remain the same, including telehealth flexibilities under Medicare through Dec. 2024 and indefinitely under Medicaid. However, Medicare and Medicaid will no longer have some of the other major flexibilities implemented during the pandemic. Certain waivers that expanded access and facility capacity, for example, will be halted. Moreover, the requirement of private insurance companies to cover COVID-19 testing without cost sharing ended on May 11.

New Low-Income Housing Bill Gains Bipartisan, Bicameral Support

On May 11, the Affordable Housing Credit Improvement Act made a comeback in the House of Representatives and the Senate with bipartisan support. Reps. Darin LaHood (R-Ill.), Suzan DelBene (D-Wash.), Don Beyer (D-Va.), Brad Wenstrup (R-Ohio), Jimmy Panetta (D-Calif.), and Claudia Tenney (R-N.Y.), along with Sens. Maria Cantwell (D-Wash.), Ron Wyden (D-Ore.), Todd Young (R-Ind.), and Marsha Blackburn (R-Tenn.) introduced the bill, which would increase the Low-Income Housing Tax Credit, an important tool for incentivizing private investment in the construction and renovation of affordable housing. The Affordable Housing Credit Improvement Act would increase the available credits by 50 percent, spurring the construction of 1.94 million additional affordable homes over the next ten years. It would also create almost three million jobs, increase tax revenue by $115 billion and support $333 billion in wages and business income. The bill would also incorporate stronger protections for veterans, victims of domestic and dating violence, as well as other underserved communities into the Low-Income Housing Tax Credit.

Subscribe to the Policy and Advocacy Radar to receive our biweekly policy roundup, which includes commentary on issues in Social Current’s federal policy agenda, opportunities to take action, and curated news and opportunities.

On Tuesday, May 2, the Senate Homeland Security and Governmental Affairs Committee hosted an “Improving Access to Federal Grants for Underserved Communities” hearing. There is a growing interest at the federal level in reforming the federal grants space to make it more transparent, efficient, and accessible, particularly for entities that don’t have the resources or capacity to apply but need access the most.

Social Current CEO Jody Levison-Johnson and Senior Director of Government Affairs Blair Abelle-Kiser submitted written testimony detailing the challenges and opportunities in the federal grants space. We will continue to gain insights from our network and build upon the increasing attention to this topic from our federal elected officials.

Key Hearing Takeaways

Continue reading for more takeaways on the witness statements and the questions from senators on the Senate Homeland Security and Governmental Affairs Committee.

Child Care Bill Introduced in Congress

On April 22, Sen. Patty Murray (D-Wash.), chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, and Rep. Robert C. “Bobby” Scott (D-Va.), chair of the House Education and Labor Committee, introduced the Child Care for Working Families Act (CCWFA), which would provide considerable resources to expanding the child care sector and making child care more affordable. According to the press release, in 29 states and the District of Columbia, infant care costs are more than the average cost of in-state college tuition at public four-year institutions. Child care workers–disproportionately women of color–are unfairly paid and forced to participate in public assistance programs. 50 percent of families live in so-called “child care deserts.” The CCWFA would create federal-state partnerships to ensure no family living under 150 percent of the state median income would pay more than seven percent of their income on child care. The bill would also give 3- and 4-year-olds access to preschool programs, increase salaries for child care workers, and bolster Head Start programs. The bill’s proponents say the bill would lift one million families out of poverty and create 700,000 new child care jobs.

U.S. Surgeon Gen. Presents National Framework to Combat Loneliness

U.S. Surgeon Gen. Vivek H. Murthy published an op-ed in the New York Times entitled “We Have Become a Lonely Nation. It’s Time to Fix That.” Murthy wrote about his own struggles with loneliness as well as the fact that at any time one out of every two Americans experiences loneliness. He stated loneliness leads to increased risk of heart disease, dementia, and stroke, and that the risk of death associated with loneliness is similar to that of smoking daily or suffering from obesity. Murthy introduced his “national framework to rebuild social connection and community in America,” which provides advice to individuals, parents, community-based organizations, schools, workplaces, public health professionals, governments, and researchers on how to invigorate relationships and connection. The framework calls on community-based organizations to create programs aimed at inclusive social connection, to build partnerships with other social institutions that foster relationships, and to elevate the topics of connection and loneliness in their communities. It also urges governments to make social connection a public health priority by reversing policies that encourage detachment and incorporating social connection into the health care system.

Debt Ceiling Negotiations Update

After the House GOP released its proposal to cut the budget for FY2024 in exchange for lifting the debt ceiling, President Joe Biden invited House and Senate leadership to the White House for negotiations on Tuesday, May 2. The Treasury Department said the federal government could be in default as soon as June 1, ramping up calls for a deal to be reached. Democrats are reiterating calls to immediately lift the debt ceiling without conditions and to negotiate the budget later in the year. House GOP, who recently passed a bill including their desired budget cuts, are hoping to get concessions from President Biden as the deadline fast approaches. The Council of Economic Advisers released an analysis stating a prolonged default could lead to a GDP contraction of 6.1 percent and the unemployment rate to rise by five percentage points.

Subscribe to the Policy and Advocacy Radar to receive our biweekly policy roundup, which includes commentary on issues in Social Current’s federal policy agenda, opportunities to take action, and curated news and opportunities.

On Tuesday, May 2, the Senate Homeland Security and Governmental Affairs Committee hosted an “Improving Access to Federal Grants for Underserved Communities” hearing. There is a growing interest at the federal level in reforming the federal grants space to make it more transparent, efficient, and accessible, particularly for entities that don’t have the resources or capacity to apply but need access the most. Social Current CEO Jody Levison-Johnson and Senior Director of Government Affairs Blair Abelle-Kiser submitted written testimony detailing the challenges and opportunities in the federal grants space. We will continue to gain insights from our network and build upon the increasing attention to this topic from our federal elected officials.

Key Hearing Takeaways

Committee Chairman Gay Peters (D-Mich.) opened the hearing by emphasizing the enormous impact of federal grants. Specifically, over $1 trillion in federal grant money was awarded last year to 131,000 recipient organizations by over 50 different federal agencies. There are over 1,900 grant programs with their own application procedures, portals and technical assistance capabilities, and award processes. He acknowledged that the current system is plagued by complex language, demanding applications, and technical challenges – all of which deter many organizations from applying in the first place. Chairman Peters stated that the purpose of the hearing was to address these barriers and present opportunities to reform the grants system to allow enhanced accessibility.

The first witness, Jeff Arkin, director of strategic issues with the Government Accountability Office, outlined the main challenges in the grant-making process. He said that grant recipients’ human capital, organizational and financial capacity is sometimes limited. He proposed that federal technical assistance at the front end and administrative and oversight assistance during grant implementation could be the answer. He also said that streamlining and creating more transparency in the grant process would reduce redundancies, enable data-driven decision-making, and ensure accountability.

Meagan Elliott, deputy chief financial officer of the City of Detroit, spoke about her office’s comprehensive strategy towards bringing more efficiency and transparency to the grant application process. The city combined all grant staff into one entity, which worked closely with federal, state, and local funders, including charitable and corporate partners. These changes led to an increased success rate for grant applications and more efficient communications through a centralized office. Drawing from her experience, Elliot recommended that federal grants enhance flexibility, allowing local leaders to decide how best to allocate funds based on the community’s pressing needs. She cited the American Rescue Plan Act State and Local Fiscal Recovery Funds as a model for this. She also stressed the need for clarity around grant expectations and consistency across federal portals.

Matthew Hanson, associate managing director at Witt O’Brien’s LLC, detailed his experience assisting federal, tribal, state, local, and community-based organizations to access government grants for the past 30 years. In his experience, the federal government has expanded technical and training assistance for grantees, but not uniformly. Moreover, little effort has been invested in helping new entities apply for grants, especially those with limited resources. Hanson recommended, among other things, mandates for technical assistance, more grant management capacity, and the creation of a grant Helpdesk for pre- and post-award support.

The witness statements were followed by an enlightening question period from senators on the committee. In response to a question from Senator James Lankford (R-Ok.) about the ease of search terms on the grants.gov portal, Mr. Arkin said that recommendations had been made to the Office of Budget and Management concerning the simplification of search parameters within the portal. Senator Jacky Rosen (D-Nev.) noted that her state continues to underperform in federal dollars per capita. Mr. Arkin testified that the GREAT Act passed in 2019 helped standardize grant language and ease prepopulated information, which should help increase the number of grant applications. However, he also urged that lack of awareness about grants is a continuing issue.

Senator John Ossoff (D-Ga.) discussed the challenges facing rural and Black communities in his state regarding accessing federal grants. Mr. Arkin responded that the new Rural Partners Network, a group of federal agencies and states, was created to overcome barriers to grants and opportunities in rural communities and that some aspects of the American Rescue plan have emphasized racial equity and should be explored in the context of grant awards.

Social Current submitted a statement to the Senate Homeland Security & Governmental Affairs Committee from President and CEO Jody Levison-Johnson and Senior Director of Government Affairs Blair Abelle-Kiser on the challenges faced by the nonprofit social sector in responding to federal grants. Among the challenges highlighted were federal contracts that don’t cover the actual cost of service delivery, the complexity of the contracting process, and a lack of funding flexibility that hampers the ability of nonprofits to innovate and address root causes. The testimony highlighted a number of solutions, including simplifying the application process, offering more consistency and transparency regarding grant application procedures and criteria, and allowing greater flexibility in the use of grant funds. It comes on the heels of an article by Jody Levison-Johnson that was published on March 30 entitled “An Urgent Response is Needed to the Dire Staff Shortages Facing NonProfit Government Contractors.”

The Senate hearing “Improving Access to Federal Grants for Underserved Communities,” took place on Tuesday, May 2, at 10 a.m. ET. For those of you who couldn’t make it, read the key takeaways Social Current put together from the hearing.

READ STATEMENT

Last week, Speaker of the House Kevin McCarthy (R-Calif.) released his long-awaited proposal to increase the debt limit, now standing at $31.4 trillion. In exchange for lifting the debt limit by $1.5 trillion until March 31, 2024, the plan proposes a series of budget cuts McCarthy says will decrease budget deficits by $4.5 trillion over the next decade. President Biden has dismissed budget negotiations, calling for a “clean” debt ceiling increase and delaying any negotiations about the federal budget until after. The Treasury Department says the debt ceiling must be raised as soon as possible and the government could run out of money as soon as June, setting up a tense few months on Capitol Hill.

McCarthy’s plan would immediately return the federal budget to FY 2022 levels, a $130 billion cut, as well as limit yearly increases to one percent for a decade. The plan doesn’t specify the programs that will be cut; however, Ranking Member of the House Appropriations Committee, Rosa DeLauro (C-Ct.), says different agencies have reported the 2022 level budget would lead to drastic impacts, including one million senior citizens losing nutrition services, 1.1 million families losing housing assistance, and 200,000 children losing access to Head Start.

Additionally, McCarthy’s plan would implement work requirements in the Supplemental Nutrition Assistance Program for adults without children until age 56, instead of age 49 under current law. Under the plan, Medicaid would also implement a work requirement of 80 hours per month, which could lead to millions being kicked off. Finally, President Biden’s student debt cancellation program, which is under consideration by the Supreme Court, would be scrapped.

Social Current will continue to monitor budget negotiations and aggressively challenge cuts to critical programs that support the health and wellbeing of vulnerable communities across the country.

HUD Selects Grantees for Choice Neighborhoods Program

The Department of Housing and Urban Development (HUD) announced $98 million in funds for the Choice Neighborhoods Implementation Grants program. The Choice Neighborhoods program takes a holistic approach to developing housing and increasing wellbeing in marginalized neighborhoods. Its three-pronged approach – “housing, people, and neighborhood” – involves redeveloping HUD-assisted properties while simultaneously supporting health, education, and income services in the community. New grocery stores, parks, services, and jobs, for example, are included in the program’s approach. These neighborhood improvement programs lead to private financing and economic growth. Since its inception, the Choice Neighborhoods program has led to 11,000 new mixed-income units in 44 cities, with another 32,000 units under consideration. This batch of grantees come from states across the country, including Arizona, California, Florida, Maine, Maryland, Michigan, Missouri, Nebraska, New Jersey, North Carolina, Ohio, Texas, Oklahoma, and Virginia. 

CSBG Receives Third Funding Installment for the Year

The Department of Health and Human Services (HHS) has released $375 million to tribes, territories and over 1,000 local Community Action Agencies through its Community Services Block Grant (CSBG). CSBG is a federally funded block grant program in the Office of Community Services within the Administration for Children and Families tackling poverty head on in communities lacking resources. The Community Action Agencies have wide leeway to choose what types of services their communities need, including housing, nutrition, employment, education, or healthcare services. Over nine million people are served annually through CSBG. The $375 million installment is the third for FY 2023, bringing the total to $750 million.

New Opportunity to Provide Health Care to Individuals Transitioning Back to Community

The Centers for Medicare and Medicaid Services (CMS) announced a new program to allow states to provide health care to incarcerated individuals as they are about to reenter their communities. The Medicaid Reentry Section 1115 Demonstration Opportunities would allow the utilization of Medicaid funds to cover health services like substance use disorders and other chronic health conditions for up to 90 days prior to release. CMS cited a study from the National Institute on Drug Abuse, which says as much as 65 percent of people who are incarcerated suffer from substance abuse disorders. It goes on to say this population is at increased risk of overdosing in the first few weeks of reentry without treatment. Providing critical health care services to this population before release lessens the challenges of transitioning back to the community and reduces recidivism.

Subscribe to the Policy and Advocacy Radar to receive our biweekly policy roundup, which includes commentary on issues in Social Current’s federal policy agenda, opportunities to take action, and curated news and opportunities.

At the beginning of the pandemic, states began receiving substantially more Medicaid funds from the federal government to expand access to necessary healthcare coverage. In exchange, states paused reviews of beneficiaries, a practice that had allowed states to regularly determine whether individuals or families were still eligible. This arrangement led to a 28 percent increase in enrollment in Medicaid and the Children’s Health Insurance Program, according to the Kaiser Family Foundation. However, in Dec. Congress voted to allow states to commence eligibility determinations after March 31.

Arkansas, Arizona, New Hampshire, South Dakota, and Idaho will begin making eligibility determinations in April, while the rest of states will start this summer. Enrollees will be forced to provide information and documentation, like income and household size, to continue receiving health care benefits. Kaiser believes between 5 million and 14 million people could lose health coverage, while the Department of Health and Human Services estimates up to 15 million could be terminated. Georgetown University Health Policy Institute predicts almost 7 million children and teens could potentially lose coverage.

Social Current will continue to monitor these developments and work with our coalition partners in Washington, D.C., to mitigate the damage of these policy changes.

HUD Announced New Funding for Youth Aging Out of Foster Care

The Department of Housing and Urban Development (HUD) announced $30 million in funding for public housing authorities to address housing instability for youth who have already left or are transitioning out of foster care. The funding is part of HUD’s Foster Youth to Independence Initiative, which provides public housing agencies with funding for housing choice vouchers that can be employed in partnership with local child welfare agencies. The program is geared toward easing the transition to independence and mitigating homelessness among young people, particularly foster care youth. The Biden-Harris Administration, as part of its goal of reducing overall homelessness by 25 percent by 2025, has proposed $9 billion in its FY 2024 budget to create a permanent housing voucher program for youth, ages 18-24, who are transitioning out of foster care.  

GAO Publishes Report on CCDF

The Government Accountability Office (GAO) recently released a report on the Child Care and Development Fund (CCDF), which is the main federal program that provides subsidies to states to assist low-income families access child care. The report analyzed data from FY 2019, the most recent data available, and found only 2 million out of the 8.7 million children who were eligible for CCDF subsidies participated in the program in an average month. GAO stated the discrepancy is caused by the lack of funding, requiring states to prioritize certain children over others. Also, some families are unfamiliar with the program or dissuaded from applying because of the procedural hurdles. GAO found that even families who did receive subsidies still struggle to afford child care, forcing difficult choices between child care and other priorities, like food.

New Ratings from the Family First Prevention Services Clearinghouse

The Family First Prevention Clearinghouse has posted new ratings for 12 prevention services. Two were found to be “supported,” three “promising,” and seven rated as “does not currently meet criteria.” The programs included mental health, substance abuse, and in-home parent skill-based services. So far, 141 programs and services have been reviewed, and 71 have been rated as promising, supported, or well-supported.

The new ratings are as follows:

Subscribe to the Policy and Advocacy Radar to receive our biweekly policy roundup, which includes commentary on issues in Social Current’s federal policy agenda, opportunities to take action, and curated news and opportunities.

Secretary of Health and Human Services, Xavier Becerra, testified in front of the Senate Committee on Finance to tout President Biden’s Fiscal Year 2024 budget for the department. Health and Human Services (HHS) covers a wide variety of programs and services, including physical healthcare, behavioral healthcare, early childhood, child care, healthcare innovation, and the public health system. The proposed budget reflects the president’s continued pursuit of social policies that strengthen the care economy through investments in behavioral and substance use programs, home and community-based services, and child care. The secretary began his remarks with a focus on transforming behavioral healthcare. The president’s budget, he said, invests in the 988 National Suicide Prevention Lifeline, increases funds for community mental health and substance use prevention and treatment, and makes the Certified Community Behavioral Health Clinics program permanent. 

The secretary also stressed the need to meet the challenge of maternal mortality through increased resources to maternal and child health programs. Care for older adults and people with disabilities is a major focus for the administration, exemplified in a proposal to spend $150 billion over ten years on the Medicaid home and community-based services program. Pre-k and child care also gain prominence in the budget, with a $200 billion proposal for universal preschool and a $400 billion proposal for high-quality child care for families earning up to $200,000. 

Social Current will continue to monitor the negotiations on the HHS budget as it is debated in Congress throughout the summer and into the fall.

Contribute to Social Current’s New Voter Outreach Toolkit

Social Current is updating its Voter and Civic Engagement Toolkit, a collaborative project with NonprofitVOTE that provides guidance, advice, and tools for community-based human services nonprofits that want to begin or expand their voter outreach efforts.

For the updated toolkit, Social Current is searching for stories from network organizations that have run successful voter engagement campaigns. If your organization has led or participated in any voter engagement activities, either in the workplace or the community, please contact Derry Kiernan, our field mobilization and policy manager.

We’d love to feature you in the new toolkit, which will be an available resource for the network and the broader nonprofit community as we head into elections this fall and next year.

Aging Committee Hearing on the Care Economy

The Senate Special Committee on Aging hosted a hearing called “Uplifting Families, Workers, and Older Adults: Supporting Communities of Care.” Chairman Bob Casey (D-Penn.) opened the hearing by calling for the passage of two bills: the Better Care Better Jobs Act, which would invest funds in the home care workforce, and the Home and Community-Based Services Access Act, which would allow everyone eligible for long-term Medicaid care services to also access home-based care. Ranking Member Mike Braun (R-Ind.) drew attention to the Prioritizing Evidence for Workforce Development Act, which supports education and workforce programs that help workers build skills in high-demand sectors, like health care. The first witness, Kezia Scales of the Paraprofessional Health Institute, explained that 2.6 million home care workers make up half of the total direct care workforce, which is the largest occupation in the country; yet 43 percent of home care workers live below 200 percent of the federal poverty level. She called on Congress to pass the Better Care Better Jobs Act because it would increase the federal match for Medicaid home and community-based services, thereby raising wages and benefits for the workforce. The testimony of Jacinta Burgess, a home care worker, illustrated the challenges that the workforce faces. As her mother’s caregiver, she earns $13.38 per hour for only 15 hours per week, even though she works around the clock. Pam Lowy, the Executive Director of Great Bay Services, said her organization serves adults with intellectual and developmental disabilities and can’t afford to pay their workers a living wage because of the low reimbursement rates in the Medicaid program.

Harsh Cuts to Social Programs in the Offing

With both Democrats and Republicans publicly committed to not cutting Social Security or Medicare as a solution to the growing budget deficit crisis, an array of other social programs will come under intense scrutiny as targets of possible cuts. In fact, some lawmakers in the House are mulling proposals that could slash budgets for Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and Housing. Eliminating Medicaid expansion under Obamacare and cutting the Section 8 housing program by 43% are being considered. According to the Center on Budget and Policy Priorities, one proposal could kick 10 million people, or one in four SNAP participants, off the program by implementing stringent work and work-reporting requirements. This includes three million households with school-age children. This year the farm bill, which covers SNAP and other Agriculture Committee programs, will be reauthorized by Congress. Social Current will continue to monitor these developments and challenge efforts to cut back on integral safety net programs.

New Factsheet on the Child Care Stabilization Program

The American Rescue Plan, passed in March 2021, provided $24 billion for the Child Care Stabilization Program to aid providers as they came out of the pandemic. A new factsheet from the Office of Child Care details how these funds were spent. More than 220,000 child care providers received funds to pay for wages and benefits, rent and utilities, and materials and supplies. This impacted 9.6 million children. Eight out of 10 child care centers received assistance. On average, child care centers received $140,600 and family homes received $23,300. These dollars helped centers stay in business and provide child care services that were pivotal to the successful emergence of the economy from the pandemic.

Subscribe to the Policy and Advocacy Radar to receive our biweekly policy roundup, which includes commentary on issues in Social Current’s federal policy agenda, opportunities to take action, and curated news and opportunities.

Last Thursday, President Biden released a $6.9 trillion spending request for the fiscal year 2024. The Presidential Budget Request is merely a recommendation – appropriations committees in both chambers of Congress will draft their proposals. However, the budget does represent the president’s priorities for the upcoming fiscal year, which begins on Oct. 1, 2023.

Here is a summary of essential line items that may be of interest to the Social Current network:

Administration for Children and Families

Substance Use and Mental Health Services Administration 

Department of Education 

Department of Agriculture 

Contribute to Social Current’s New Voter Outreach Toolkit

Social Current is updating its Voter and Civic Engagement Toolkit, a collaborative project with NonprofitVOTE that provides guidance, advice, and tools for community-based human services nonprofits that want to begin or expand their voter outreach efforts.

For the updated toolkit, Social Current is searching for stories from network organizations that have run successful voter engagement campaigns. If your organization has led or participated in any voter engagement activities, either in the workplace or the community, please contact Derry Kiernan, our field mobilization and policy manager.

We’d love to feature you in the new toolkit, which will be an available resource for the network and the broader nonprofit community as we head into elections this fall and next year.

Hearing on Community Health Centers

On March 2, the Senate Committee on Health, Education, Labor, and Pensions hosted a hearing called “Community Health Centers: Savings Lives, Saving Money.” The hearing highlighted the vital work community health centers (CHCs) and their workforce do in local communities nationwide under its unique model. As the speakers argued in their testimonies, health centers help expand healthcare to vulnerable populations while minimizing healthcare costs through extended primary care and innovative integrated care approaches. According to a Kaiser Permanente study, Amanda Pears Kelly, CEO of Advocates for Community Health, argued that community health centers saved the Medicaid and Medicare programs $25.3 billion in 2021 by focusing on cost-saving primary care. Sue Veer of Carolina Health Centers focused on the creative side of CHCs, citing the emphasis on integrated care models, like Nurse-Family Partnership and Parents as Teachers, that improve outcomes for vulnerable populations. Ben Harvey of the Indiana Primary Health Care Association cited a study that said CHCs had an economic impact in the state of nearly $1 billion annually through the employment of direct and indirect workers and the increased spending of healthy people in the community. Finally, a representative from the Government Accountability Office, Jessica Farb, showed that the number of patients served by CHCs increased from 19.5 million in 2010 to 30 million in 2021.

Tax Policy Solutions to the Housing Crisis

Last week, the Senate Committee on Finance held a hearing on the role of tax policy in incentivizing the construction of affordable housing across the country. In their opening statements, Chairman Ron Wyden (D-Oreg.) and Ranking Member Mike Crapo (R-Idaho) highlighted the main issue: the failure of housing construction to keep up with rising demand has led to sky-high rental rates and property prices. Mark Calabria of the Cato Institute stated that housing affordability decreased unprecedentedly from 2021 to 2022. Sharon Wilson Geno, a representative from the National Multifamily Housing Council and National Apartment Association, cited a study that said the percentage of households paying more than 30 percent of their income on housing increased from 28% in 1985 to 36.9% in 2021. The presenters supported numerous tax policy solutions that could incentivize more housing production, meet housing demand, and reduce prices. Garrett Watson of the Tax Foundation discussed reforms to the Low-Income Housing Tax Credit, a $13.5 billion annual credit that helped build more than 3 million housing units between 1986 and 2020. Steve Walker of the Washington State Housing Finance Commission discussed the role of the Housing Credit, particularly in tight markets that developers often overlook. Geno called for the passage of the Middle-Income Housing Tax Credit, which would support the construction of 344,000 rental homes over ten years.

USDA Equity Commission Report Released

The Department of Agriculture released its first Equity Commission report, a requirement of President Biden’s January 2021 Executive Order on racial equity. The report outlines various ways the department can advance equity and justice, given its history of racial discrimination in funding and resource allocation. Though the report primarily focuses on policy proposals that impact farmers, it also makes recommendations about the Supplemental Nutrition Assistance Program (SNAP). The report states that current policy limits program access based on residency and immigration status, which should be rectified. The report also recommends lifting restrictions on residents of Puerto Rico, people with previous drug felony convictions, and unemployed people without dependents. USDA says these existing policies disproportionately impact BIPOC and harm their nutrition and health.

Social Current, APHSA Partner to Co-Create New Framework for Community-Based and Public Sector Human Services Leaders

The American Public Human Services Association (APHSA) and Social Current have a long history of collaboration. With support from the Robert Wood Johnson Foundation, the two organizations will continue partnering to develop a new leadership framework for health and human services leaders to work together across system boundaries.

Read more in this article by APHSA President and CEO Tracy Wareing Evans and Social Current President and CEO Jody Levison-Johnson from the latest edition of Policy & Practice.

Subscribe to the Policy and Advocacy Radar to receive our biweekly policy roundup, which includes commentary on issues in Social Current’s federal policy agenda, opportunities to take action, and curated news and opportunities.

On Feb. 15, Sen. John Fetterman (D-Pa.) voluntarily checked himself in to Walter Reed National Military Medical Center to receive treatment for clinical depression, setting off a heated national debate about self-care and leadership. While on the campaign trail last year, Fetterman suffered a stroke which impacted his cognitive abilities and reportedly led to his current bout of depression. By seeking care, Fetterman demonstrates solidarity with millions of people in this country suffering from depression. By publicly announcing his decision, he also helps to eliminate the stigma behind seeking mental health care, particularly in the workplace. He is part of a growing line of prominent figures, like Simone Biles and Jason Kander, who have modeled a new approach to mental health challenges.

The social sector, like other sectors, is making progress toward breaking down the stigma around mental health. Since the onset of the COVID-19 pandemic, when instances of suicide ideation, addiction, and anxiety began to increase rapidly, more organizations and leaders have begun to engage openly with mental health challenges in the workforce. One helpful resource is Mental Health First Aid at Work, a training program that gives participants the tools to support co-workers with mental health or substance use issues. Another resource, Up to Me from WISE, guides individuals through whether and how to safely disclose their mental illness to others, if they so choose.

Social Current offers workforce resilience consulting to help social sector leaders build a workplace culture based on equity, connection, and psychological safety.

President Biden Signs New Equity Executive Order

On Feb. 16, President Biden signed an executive order to support racial equity and strengthen the federal government’s efforts to combat systemic racism and poverty. This builds upon another executive order he signed on the first day of his presidency which advanced an all-of-government approach to eliminating systemic inequities of all kinds. The new executive order requires federal agencies to create annual equity action plans that steer policies and programs toward underserved communities. Per the order, as agencies develop their plans, they must actively and frequently engage with local communities and organizations. Further, agency equity teams must be created in each agency, with high-ranking leaders implementing equity plans while working across agencies to foster collaboration and accountability. Finally, the executive order requires a more comprehensive, detailed collection and analysis of demographic data.

2021 Child Abuse and Neglect Report Released

The Children’s Bureau within the Department of Health and Human Services released the latest version of its annual series, “Child Maltreatment 2021.” Drawn from data provided by states to the National Child Abuse and Neglect Data System (NCANDS), the series details the nature and extent of child abuse and neglect cases across the country each year. The 2021 report found Child Protective Services responded to referrals of over three million children through investigation or other means. In 2021, an estimated six hundred thousand children were victims of maltreatment (the lowest number in the last five years). Of those children, 76 percent were neglected, 16 percent physically abused, 10.1 percent sexually abused, and 0.2 percent sex trafficked. Tragically, 1,820 children died from abuse and neglect. 67 percent of reporters were professionals, including education, medical, legal, and law enforcement personnel, 17.1 percent were nonprofessionals (friends, neighbors, and relatives), and 16 percent were unclassified, including anonymous and unknown sources.

Announcement of New Emergency Food Assistance Funding

As part of a $1 billion investment in the country’s emergency food system, the U.S. Department of Agriculture set aside $100 million for The Emergency Food Assistance Program (TEFAP) Reach and Resiliency grant initiative. $60 million in round-two grant funding is available to pursue the program’s goal of extending TEFAP’s impact to remote, rural, tribal, and low-income areas currently neglected by the program. In round one, grantee states received $40 million. They worked with food banks on various activities, including studies and surveys, cultural competency training, mobile food bank infrastructure, equipment and technology purchases, and proactive outreach to tribal areas.

Social Current, APHSA Partner to Co-Create New Framework for Community-Based and Public Sector Human Services Leaders

The American Public Human Services Association (APHSA) and Social Current have a long history of collaboration. With support from the Robert Wood Johnson Foundation, the two organizations will continue partnering to develop a new leadership framework for health and human services leaders to work together across system boundaries.

Read more in this article by APHSA President and CEO Tracy Wareing Evans and Social Current President and CEO Jody Levison-Johnson from the latest edition of Policy & Practice.

Subscribe to the Policy and Advocacy Radar to receive our biweekly policy roundup, which includes commentary on issues in Social Current’s federal policy agenda, opportunities to take action, and curated news and opportunities.