More than 800 nonprofits have joined a sign-on letter to Congress in support of the Streamlining Federal Grants Act (S. 2286/H.R. 5934). Social Current has been active in advocating for federal grant reform, and in collaboration with the National Council of Nonprofits, has been educating the sector on the importance of this legislation that would enhance the efficiency and performance of federal grants and cooperative agreements.

Social Current’s Senior Director of Government Affairs Blair Abelle-Kiser commented on the importance this act has for the sector:

“I believe the Streamlining Federal Grants Act is a transformative step toward a more efficient and equitable grant administration system. By addressing critical issues and advocating for coordination, transparency, and equitable access, this legislation has the potential to empower nonprofits and uplift underserved communities across the nation.”

Grassroots advocacy by community-based organizations has been instrumental in building support in Washington, D.C., for the Streamlining Federal Grants Act. Since Social Current hosted its first-ever Capitol Hill Day on October 18, during which dozens of our network organizations met with members of Congress and staff, eleven members of Congress have cosponsored the bill.

These new cosponsors include Derek Kilmer (D-Wash.), Sara Jacobs (D-Calif.), Jimmy Panetta (D-Calif.), Rudy Yakym (R-Ind.), David Trone (D-M.D.), Chuck Edwards (R-N.C.), Joseph Morelle (D-N.Y.), Brian Fitzpatrick (R-Penn.), Jake Auchincloss (D-Mass.), Yadira Caraveo (D-Colo.) and Doug LaMalfa (R-Calif.).

Please sign onto the letter endorsed by more than 800 other nonprofits and help keep up the momentum!

HHS and DOE Release New Resource for Inclusion of Children with Disabilities in Early Childhood Programs

The U.S. Department of Education (DOE) and the U.S. Department of Health and Human Services (HHS) have collaboratively issued an updated policy statement highlighting the value of integrating children with disabilities into early childhood programs. This revised statement expands upon a 2015 version, reaffirming dedication and urgency to surmount obstacles hindering these children from fully engaging in inclusive early childhood programs. The revision aligns with President Biden’s executive order focusing on enhanced access to top-tier care and bolstering support for caregivers. Secretary of Education Miguel Cardona said, “Our nation’s youngest learners – including those with disabilities – deserve access to high quality early childhood programs that nurture their potential and provide a strong foundation for future success.”

With over 61 million U.S. adults grappling with disabilities and nearly one in six children experiencing developmental delays, the administration has advocated for a culture of inclusion spanning from birth to education and extending into communities and workplaces, according to HHS and DOE. The statement underscores the need for inclusive environments, presenting updated guidelines for implementing programs administered under the Individuals with Disabilities Education Act, Head Start, childcare, home visiting, preschool, and public schools. It also includes evidence-based models and resources to facilitate tailored programming for children with disabilities in early childhood programs.

Administration Launches 2024 Marketplace Open Enrollment Period

The Biden-Harris administration announced that more than 4.5 million people have opted for health insurance plans through the Affordable Care Act (ACA) Health Insurance Marketplace in the ongoing 2024 Marketplace Open Enrollment Period (OEP), between Nov. 1 and 18. This data encompasses the 32 states using HealthCare.gov up to week three, and in the 17 states as well as the District of Columbia with State-based Marketplaces until week two. Among these selections, 920,000 individuals (20% of total) are newcomers to the Marketplaces for 2024, while 3.7 million people (80% of total) possess existing 2023 coverage.

In a statement, Secretary of Health and Human Services Xavier Becerra highlighted the robust launch of this year’s enrollment season, stressing four out of five individuals can secure a plan for $10 or less per month after subsidies on HealthCare.gov. According to the administration, the Inflation Reduction Act has played a role in reducing costs and enhancing benefits; it is anticipated 9 out of 10 customers will be eligible for savings. During the OEP, almost 96% of HealthCare.gov consumers have the option to choose from at least three health insurers. The highly competitive Marketplace for 2024 offers various plan choices, encouraging individuals to revisit and shop for plans that better align with their needs at a reduced cost.

The 2024 OEP spans from Nov. 1, 2023, to Jan. 15, 2024, and individuals enrolling by midnight on Dec. 15 can secure full-year coverage starting on Jan. 1, 2024. The administration also provides support through Navigator Awards to organizations aiding in consumer assistance.

Congress Punts Federal Budget Negotiations Until Next Year

President Joe Biden signed a temporary funding bill on Nov. 16, following the Senate’s bipartisan approval in a vote of 87-11. The legislation, referred to as a continuing resolution (CR), effectively averts the risk of a government shutdown until after the holiday season. The CR garnered substantial backing in the House, securing a vote of 336-95 on Tuesday. Senate Majority Leader Chuck Schumer (D-N.Y.) highlighted the significance of bipartisan collaboration in ensuring government operations without detrimental cuts or contentious provisions.

Crafted by House Speaker Mike Johnson (R-La.), the CR allocates funds to specific departments such as Agriculture, Transportation, Housing and Urban Development, and Veterans Affairs until Jan. 19, 2024. The Defense Department, along with Health and Human Services, Education, and other government components, will receive funding until Feb. 2. Johnson’s strategy was aimed at avoiding a last-minute comprehensive spending package ahead of Christmas. Notably, the CR is characterized as “clean,” devoid of spending cuts or policy disputes that could isolate Democrats, and it excludes a supplemental package addressing matters like aid for Israel and Ukraine, humanitarian assistance, or border security.

This interim measure grants additional time for House Republicans to pass remaining appropriations bills and for negotiators in both the House and Senate to finalize funding agreements. Despite challenges, Johnson maintains an optimistic outlook, underscoring the ongoing process of consensus-building within the Republican ranks.

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More than 800 nonprofits have joined this sign-on letter in support of the Streamlining Federal Grants Act (S. 2286/H.R. 5934). This legislation addresses critical issues in managing federal grant programs and would help enhance the efficiency and performance of federal grants and cooperative agreements.

The Streamlining Federal Grants Act first gained momentum when introduced by Sens. Gary Peters (D-Mich.), James Lankford (R-Okla.), and John Cornyn (R-Texas) on July 17. At the time, leaders from across the social sector shared statements of support for the bill in a press release from the U.S. Senate Committee on Homeland Security & Governmental Affairs.

Now, 827 nonprofits have rallied behind the legislation recognizing the lasting impact it could have on the sector and the communities served. Specifically, the Act focuses on several fundamental principles that will enhance this grant process for all:

Social Current has been active in advocating for federal grant reform and educating our network about the issue. Social Current’s Senior Director of Government Affairs Blair Abelle-Kiser commented on the importance this act would have on the sector:

“I believe the Streamlining Federal Grants Act is a transformative step toward a more efficient and equitable grant administration system. By addressing critical issues and advocating for coordination, transparency, and equitable access, this legislation has the potential to empower nonprofits and uplift underserved communities across the nation.”

Social Current is monitoring the progress of the Streamlining Federal Grant Act of 2023 and will share updates in our Policy and Advocacy Radar newsletter. Subscribe online.

VIEW LETTER

Learn More & Take Action

The Biden-Harris Administration is taking significant steps to bolster public health by addressing social determinants through a collaborative effort across multiple agencies. The U.S. Department of Health and Human Services (HHS), particularly the Centers for Medicare & Medicaid Services (CMS), is unveiling vital resources to streamline the coordination of health care, public health, and social services at the federal, state, and local levels.

The effort includes the introduction of the inaugural U.S. Playbook to Address Social Determinants of Health, underscoring the interdependence of health, secure housing, nutritious food, and unpolluted air. HHS Secretary Xavier Becerra said, “It is clear that the health of our people does not exist in a vacuum, but it is affected by our access to stable housing, healthy food, and clean air to breathe.”

Additionally, the administration is launching a Call to Action to Address Health Related Social Needs as well as a Medicaid and CHIP Health-Related Social Needs Framework. These resources offer guidance to states in structuring programs that tackle housing and nutritional deficiencies for vulnerable populations. The guidance advocates for collaborative efforts across sectors, engaging private health care, social services, public health, environmental agencies, government, and information technology, to cultivate a more integrated health and social care system.

This all-encompassing strategy aligns investments across diverse federal agencies, including the departments of Health and Human Services (HHS), Agriculture (USDA), Housing and Urban Development (HUD), Veterans Affairs (VA), the Environmental Protection Agency (EPA), and others, to fund local initiatives, empower communities, and enhance health outcomes. Rooted in the White House Challenge to End Hunger and Build Healthy Communities, this initiative aligns with the Biden-Harris Administration’s National Strategy on Hunger, Nutrition, and Health. The overarching objective is to establish fair, accessible, person-centered health and social care systems, irrespective of social circumstances, reinforcing the administration’s dedication to health equity and comprehensive well-being.

HHS Announces New Funding for Community Behavioral Health

As part of the Biden-Harris Administration’s commitment to address behavioral health challenges at the community level, the U.S. Department of Health and Human Services (HHS) and the Substance Abuse and Mental Health Services Administration (SAMHSA) have unveiled funding opportunities totaling $74.4 million. These grants are designed to proactively prevent substance use, addressing associated concerns in line with the administration’s efforts to combat the overdose epidemic and tackle the national mental health crisis.

In related remarks, Secretary Xavier Becerra of HHS underscored the promotion of positive outcomes and the advancement of health equity through the support of community-based behavioral health services. SAMHSA, led by Miriam E. Delphin-Rittmon, is dedicated to enhancing access to behavioral health care services nationwide. The funding empowers organizations to implement evidence-based strategies aimed at preventing and addressing substance misuse while also promoting mental health.

The announced funding opportunities include $30.4 million in grants for the Expansion and Sustainability of the Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (CMHI) program. This initiative targets the enhancement of mental health outcomes for children and youth at risk of serious emotional trauma. Additionally, $13.1 million is earmarked for Tribal Behavioral Health to counteract suicidal behavior, substance use/misuse, overdose, and trauma among American Indian/Alaska Native youth. Two grants, $15.5 million each, are directed at state and community entities to mitigate substance misuse onset and progression by prioritizing prevention and mental health promotion services. This initiative aligns with the administration’s comprehensive mental health strategy and the National Drug Control Strategy, contributing to a holistic, whole-of-government approach to addressing the overdose epidemic and mental health crisis.

HUD Rolls Out Grants for Youth Experiencing Homelessness

The U.S. Department of Housing and Urban Development (HUD) introduced a comprehensive strategy to tackle homelessness, with a specific focus on youth, individuals in unsheltered environments, and those in rural areas. HUD has designated $50 million for Youth Homelessness System Improvement (YHSI) grants, which will benefit around 35 communities. The grants seek to bring about systemic changes that improve response systems for youth at risk or experiencing homelessness. Objectives include enhancing impact through Youth Action Boards, setting up regional committees to address youth homelessness across various systems, gathering and utilizing data on at-risk youth, nurturing community leaders, and refining coordination of homeless assistance projects.

According to HUD Secretary Marcia L. Fudge, “The Biden-Harris Administration is taking a whole-of-government approach toward ending homelessness. We encourage our state and local partners to join us in this critical effort and leverage unprecedented levels of federal resources and flexibilities available to address this crisis.” In addition to the YHSI grants, HUD is implementing a technical assistance strategy for 62 Continuum of Care communities and 139 Public Housing Authorities (PHAs). This strategy aims to improve program coordination, elevate leaders with lived experience, engage individuals in unsheltered and rural settings, and make permanent housing a reality with supportive services.

Family First Prevention Services Clearinghouse Posts New Ratings

The Family First Prevention Clearinghouse has posted new ratings for twelve prevention services. One was found to be “well-supported,” one was rated as “supported”, one as “promising”, and nine were rated as “does not currently meet criteria.” The programs included mental health, substance abuse, kinship navigator, and in-home parent skill-based services. So far, 160 programs and services have been reviewed, and 79 have been rated as promising, supported, or well-supported. The new ratings are:

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The Streamlining Federal Grants Act was recently introduced in the Senate and House (S. 2286/H.R. 5934) and seeks to improve the effectiveness and performance of federal grants and cooperative agreements, simplify application and reporting requirements, and facilitate greater coordination among federal agencies responsible for delivering services to the public. Notable for nonprofits, the bill promotes consultation with charitable organizations and governments and calls for improving services delivered to communities and organizations that historically have been unable to access federal grants or cooperative agreements.

Read the nonprofit coalition letter in support of the Streamlining Federal Grants Act. The due date to sign on has now passed. We still encourage you to take action and reach out to your members of Congress today.

Budget Proposals Still Lack Necessary Funds for WIC

As the Nov. 17 deadline nears, lawmakers are still negotiating the federal budget, with many expecting another continuing resolution that will fund the government temporarily while compromises are hashed out. According to the Center on Budget and Policy Priorities, the current proposals under consideration in both the House and Senate fall significantly below the necessary funding levels for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). WIC stands as a remarkably effective program, providing nutrition aid, educational resources, and assistance to families with limited incomes. Absent supplementary funding, an estimated 600,000 eligible new parents and young children may be denied access to WIC, potentially resulting in waitlists and decreased enrollment. This funding shortfall could also dissuade eligible families from seeking program benefits.

Insufficient funding for WIC would mark an extraordinary situation, predominantly impacting recent parents, young children, and preschoolers, potentially resulting in heightened food insecurity and enduring health ramifications. The Senate bill allocates $6.3 billion for WIC, but this sum falls short due to the increasing levels of participation and rising food costs. Estimates suggest that Congress must allocate a total of $7.1 billion for WIC in 2024 to ensure that every eligible family can access the complete benefit. Congress is strongly encouraged to honor its commitment and supply the requisite funding for WIC as the appropriations process unfolds.

Youth Prevention and Recovery Reauthorization Act Introduced

On Oct. 18, Senators Shelley Moore Capito (R-W.Va.) and Gary Peters (D-Mich.) introduced the bipartisan Youth Prevention and Recovery Reauthorization Act to reauthorize funding for the Youth Prevention and Recovery Initiative. This initiative was established as part of the 2018 SUPPORT Act, focusing on expanding access to opioid addiction treatment for adolescents. It aims to secure ongoing funding for this critical resource within the U.S. Department of Health and Human Services, benefiting youth, families, care providers, and communities.

The backdrop for this legislation is a troubling rise in opioid use among American adolescents, with over 695,000 using opioids for nonmedical purposes in 2018, marking a substantial increase since 2015. Additionally, during the initial two years of the COVID-19 pandemic, monthly drug overdose deaths among adolescents aged 10 to 19 nearly tripled, according to the CDC. The legislation aims to address these difficulties by allocating funds to broaden the availability of medications for treating opioid addiction among adolescents and young adults. It also intends to raise awareness of the hazards linked to opioids and provide training to healthcare professionals, families, and school staff in effective strategies to support adolescents dealing with opioid use disorders.

New Funding for Community Development Projects

On Oct. 10, the U.S. Department of Health and Human Services (HHS) announced the allocation of $16.7 million in new grants to support 39 Community Economic Development (CED) projects. The CED initiative aims to broaden the scope of employment prospects in regions grappling with long-standing poverty and elevated joblessness, all while eradicating hindrances to secure employment. These grants empower beneficiaries to furnish crucial supports, such as childcare, transportation, and financial education.

These grants aim to create over 575 new, sustainable full-time jobs for individuals residing in low-income communities across 26 states. Three-quarters of the job opportunities originating from each CED grant will be set aside for individuals with low incomes, and awardees will provide assistance services to tackle the employment obstacles faced by this group.

Notably, many of the awarded grants align with the Justice40 Initiative, benefitting disadvantaged communities and furthering the goal of fostering sustainable economies in areas that need it most. The CED initiative is managed by the Administration for Children and Families’ Office of Community Services, which administers multiple anti-poverty programs to address poverty’s root causes, enhance economic security, and revitalize communities.

HHS and HUD Tackle Housing and Homelessness Together

On Nov. 1, Secretary Xavier Becerra was named the chair of the U.S. Interagency Council on Homelessness (USICH), which coordinates the federal homelessness strategy, supporting state and local efforts to address homelessness. To combat homelessness and enhance housing accessibility, the U.S. Department of Health and Human Services (HHS) announced several initiatives, including nine new grants worth $2.1 million to strengthen wrap around services for families living in affordable housing and 11 grants totaling nearly $4 million for preventing youth homelessness.

Furthermore, HHS and the U.S. Department of Housing and Urban Development (HUD) have launched the Housing and Services Partnership Accelerator (Accelerator). This initiative aids states in enhancing pioneering housing-related assistance and services for individuals with disabilities and older adults facing homelessness risks. The Accelerator assembles cross-disciplinary teams from four states to confront shared challenges and enhance cooperation and coordination. Its primary objectives are to optimize resource utilization, harmonize policies, and provide comprehensive services.

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Last Wednesday, Social Current held its first-ever Hill Day in Washington, D.C., as part of our larger SPARK 2023 conference. During this event, 40 participants from dozens of our network organizations participated in over 50 meetings with members of Congress and staff to build support for the bipartisan Streamlining Federal Grants Act. Each of our advocates crisscrossed Capitol Hill throughout the day, speaking with numerous offices on both sides of the aisle about the necessity to pass this crucial legislation, which would simplify the grant application process so that all nonprofits, large and small, can access federal grants.

Based on initial reports from the participants, our delegation was received warmly with curiosity and growing support.

Hill Day teams met with multiple offices across Congress. The offices pictured above include Sens. John Cornyn (R-TX), John Kennedy (R-LA), Marco Rubio (R-FL), Alex Padilla (D-CA), and Tammy Baldwin (D-WI).

Prior to Hill Day, participants joined the Igniting Advocacy Training at SPARK 2023 to prepare for their conversations ahead. Led by Social Current’s Senior Director of Government Relations Blair Abelle-Kiser, the training covered the fundamentals of Congress, details on the Streamlining Federal Grants Act, and ways to effectively tell your organization’s story and build a compelling message. Participants left the trainings confident and prepared to advocate to their senators and representatives on behalf of their organizations and local communities.

Participants during the Igniting Advocacy Trainings at SPARK 2023

All in all, the advocacy training and Hill Day was a success. Social Current plans to host future advocacy days in Washington, D.C., as we, in concert with our network, flex our advocacy muscles to amplify the power of the social sector!

And save the date for SPARK 2024, Oct. 21-22, in Denver, Colorado.

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The Biden-Harris Administration has proposed significant changes to the Office of Management and Budget’s (OMB) Uniform Grants Guidance aiming to benefit nonprofit organizations, particularly addressing concerns related to indirect costs. These reforms are set to streamline service delivery, enhance equity, and improve the administration of federal financial assistance. Key provisions include bolstering federal reimbursement for nonprofits’ indirect costs, simplifying the federal grant process, and advancing equity.

Bolstering Federal Reimbursement for Nonprofits’ Indirect Costs

The proposed OMB Uniform Grants Guidance seeks to increase reimbursement rates for indirect costs carried by nonprofit organizations, currently set at ten percent. The new plan raises the de minimis rate to 15 percent, providing better recovery of indirect costs, especially for newer organizations without formal rate negotiation capabilities.

Making the Federal Grant Process Simpler and More Equitable

The OMB Grant Guidance proposes several changes to simplify and make the federal financial assistance management process more transparent and equitable:

Advancing Equity and Overcoming Barriers

The proposed revisions aim to reduce complexity and lower barriers for recipients of federal financial assistance, particularly those in underserved communities:

Additional Significant Reforms

In addition to the above, the proposed reforms include:

These proposed reforms represent a significant shift towards a more accessible, equitable, and efficient federal grant process, mainly supporting nonprofit organizations and addressing longstanding concerns related to indirect costs. Public comments on these reforms are invited until Dec. 4, 2023, offering an opportunity for further input and refinement.

Resources

HHS Announces Major Step Forward for Kinship Caregivers

The Department of Health and Human Services released a new rule to help relatives become licensed or approved foster caregivers. Research has clearly demonstrated children are served better by living with kinship caregivers. Kinship families, however, have faced unnecessary barriers to becoming licensed, including requirements to participate in trainings that are geared toward non-relative foster parents. Under the new rule, grandparents, aunts, uncles, and other kin will have more expedient access to licensing or approval. They will also receive services and foster care maintenance payments equal to other foster families. The rule includes provisions to address other unique aspects of kinship caregiving, such as raising the age limit for kinship foster care providers and allowing foster children to share sleeping spaces with kin. HHS has pledged to work closely with states, tribes, community-based organizations, and families as they integrate these new policies.

HHS Introduces New Initiatives on Maternal Health Day of Action

On Sept. 27, the Department of Health and Human Services (HHS) Maternal Health Day of Action, Secretary Xavier Becerra announced $103 million in awards to address gaps in maternal health across the nation, as well as a new task force on the issue and a new national public education campaign called “Talking Postpartum Depression.” To combat the maternal mortality crisis, the secretary said at the announcement ceremony, “HHS is taking action to improve maternal care, help new moms, and ensure their children have the healthiest start in life.” The Human Resources and Services Administration will disperse the vast majority of the funds to efforts such as expanding the perinatal workforce, increasing access to maternal health in underprivileged and rural communities, funding wrap around services like OB/GYNs and midwives, and developing maternal health research. A newly announced task force on maternal mental health will convene experts and those with lived experience to identify best practices and evidence-based interventions to improve health equity and incorporate trauma-informed practices. Finally, the “Talking Postpartum Depression” campaign will exhibit personal stories from women who have experienced postpartum depression and increase awareness of symptoms and resources.

The House of Representatives Loses Its Speaker

Last week, for the first time in the country’s history, the Speaker of the House, Kevin McCarthy (R-Calif.), was toppled, leaving the House of Representatives without a leader and the federal budget negotiations in turmoil. McCarthy joined with moderate Republicans and the Democrats the week before to pass a continuing resolution, which would fund the government at current levels for forty-five days, buying more time for Congress to negotiate the budget. This caused backlash from far-right members of the GOP caucus, led by Rep. Matt Gaetz (R-Fl.), who initiated a motion to vacate the Speakership, ultimately overthrowing McCarthy.

It is unclear where the House goes from here. The first step is for the GOP to elect a new Speaker. So far, two members, Reps. Jim Jordan (R-OH) and Steve Scalise (R-La.), have thrown their hats in the ring of what will undoubtedly be a tendentious fight for leadership. The new Speaker, whoever it may be, will have to steer a challenging negotiation in the House over the federal budget, with two issues taking center stage: border security and Ukraine aid.

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On Thursday, the House of Representatives went on recess without passing a single funding bill—just 10 days before the federal government is scheduled to run out of money. Speaker of the House Kevin McCarthy (R-Calif.) tried and failed twice last week to pass a defense spending bill, all with the hope of building momentum in the chamber to pass a short-term continuing resolution that would fund the entire government. His latest overture to the hard-right members of his caucus included an 8% reduction in domestic spending, more stringent immigration laws, and establishment of a fiscal commission to recommend changes to entitlement spending. His proposed spending level was $1.526 trillion, $64 billion less than what he agreed to with President Joe Biden earlier this year and a non-starter in the Democratic-controlled Senate.

Despite these concessions, members of the far-right scuttled the defense spending bill, sending the entire process into chaos. With time ticking toward the Sept. 30 deadline, it is unclear how Speaker McCarthy intends to pick up the pieces and avoid a disastrous government shutdown that, by some estimates, would cut GDP by 0.2 percentage points for each week in duration and could force the economy into a recession.

Democrats Introduce Bill to Save Child Care

On Sept. 13, leading Democrats in the Senate and House of Representatives introduced the Child Care Stabilization Act, which would fend off an impending catastrophe in the child care sector by funneling money to providers. The bill, co-sponsored by Sens. Patty Murray (D-Wash.) and Bernie Sanders (I-Vt.) and Representative Kathryn Clark (D-Mass.), would dedicate $16 billion per year in mandatory funding for the next five years to child care providers, keeping the sector afloat after a series of tumultuous years during and after the pandemic. On Sept. 30, $24 billion in stabilization assistance, which has been a lifeline to the sector, is set to expire.
According to one analysis from The Century Foundation, if no additional funding is found, 70,000 child care programs would shutter, 3.2 million children would lose care, 232,000 workers would be out of jobs, and states would lose $10.6 billion in tax and business revenue. The Child Care Stabilization Act would continue this much-needed funding stream and ensure child care centers can provide high-quality and affordable child care.

HUD Announces New Awards to Tackle Youth Homelessness

On Sept. 20, The Department of Housing and Urban Development announced $60.3 million in awards for efforts to end youth homelessness in 16 communities. The program, called the Youth Homelessness Demonstration Program, funds a variety of services depending on local needs, including rapid rehousing, host homes, and transitional housing. During the awards process, HUD engaged youth who had experienced homelessness, eliciting their feedback on applications.

Award recipients will use the funds to tackle their communities’ unique challenges, with a special focus on equitable approaches to disproportionately affected groups, including BIPOC, LGBTQIA+, and differently abled youth. Each community is required to create Youth Action Boards, which are led by youth with lived experience and strive to design and improve programs. In total, 110 communities have received $440 million through the Youth Homelessness Demonstration Program. In preparing this round of recipients, HUD worked closely with the Department of Health and Human Services, the Department of Education, and the U.S. Interagency Council on Homelessness to support development of the program. YHDP is part of the Biden-Harris Administration’s All In initiative, which seeks to reduce homelessness by 25% by 2025.

New Initiative Focuses on TANF and Child Welfare Collaboration on Prevention

The Office of Family Assistance and the Children’s Bureau, within the Administration for Children and Families, announced a joint initiative called Families Are Stronger Together (FAST), which will create a new Temporary Assistance for Needy Families (TANF) learning community built around collaboration between TANF and child welfare agencies, with a special focus on prevention. Because one of TANF’s goals is to ensure children are supported in their own home or in the home of relatives, TANF has a large role to play in providing economic assistance to struggling families. The learning community will develop new strategies for coordination between TANF and child welfare agencies that support families and prevent poor outcomes for children. Over the 12-month initiative, 10 teams made up of TANF and child welfare agencies from different states will work with coaches, attend in-person gatherings, and receive technical assistance.

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On Aug. 30, the U.S. Department of Labor (DOL) proposed a new rule that will directly impact overtime pay policies in the social sector. The social sector must have a seat at the table as the Department considers implementing its changes.

The Fair Labor Standards Act (FLSA) mandates minimum wage and overtime pay for eligible employees. An exemption known as the “white-collar,” or executive, administrative, or professional (EAP) exemption exists for certain employees, which is subject to specific criteria set by the DOL.

The proposed changes to the EAP exemption include:

The proposed changes aim to better define who qualifies for the EAP exemption by aligning salary levels with contemporary wage data. These updates are based on the DOL’s commitment to regularly review and adjust salary thresholds to keep pace with changing wages.

The Department estimates these changes could affect 3.4 million employees who would gain overtime protection and 248,900 employees affected by the HCE total annual compensation increase. The estimated direct employer costs over the first ten years would be $664 million, with $1.3 billion in annualized income transfers from employers to employees.

The proposed adjustments to the EAP exemption aim to ensure it remains relevant and effective in distinguishing between exempt and nonexempt employees while considering economic impacts on employers and employees.

Here are relevant resources to better understand the new rule:

Please read these resources and learn how it would impact your organization.

The DOL has opened the new rule to public comment for 60 days. Social Current is seeking feedback from the network to inform our response, which we will submit to the DOL by the deadline on Halloween. We also encourage network organizations to submit their own comments.

Please get in touch with our Government Relations Team at babelle-kiser@social-current.org and dkiernan@social-current.org with questions or feedback on the rule.

You can also submit feedback through this form.

New Nonprofit Workforce Shortage Crisis Report from NCN

The National Council of Nonprofits recently released its annual report 2023 Nonprofit Workforce Survey Results: Communities Suffer as Nonprofit Workforce Shortage Crisis Continues. The report, based on 1,600 survey responses from all 50 states and the District of Columbia in April, paints a stark picture of the social sector struggling to recover from the pandemic. Nearly three quarters of respondents reported job vacancies in their organizations, with 75 percent of respondents citing vacancies in program and service delivery positions, and 41 percent in entry-level positions. Almost 52 percent said they have more vacancies than before the pandemic, and 28 percent said they have longer waiting lists for services. The main staffing challenges are related to salary competition and budget constraints. 72 percent of respondents cited competition with other sectors as a barrier to recruitment and retention, and two-thirds referred to budget constraints/insufficient funds as a significant issue. About half of respondents named stress and burnout as an obstacle. Ominously, over 70 percent of nonprofits expect less or the same level of charitable giving in 2023.

The survey also asked respondents to mention solutions to the staffing difficulties they are facing. Four policy solutions topped the list, including reform of government grants and contracts, implementation of charitable giving incentives, support for the Public Service Loan Forgiveness Program, and funding for child care.

Possible Government Shutdown

With the deadline to pass the federal budget by Sept. 30 rapidly approaching, lawmakers in Congress are desperately trying to cobble together a continuing resolution that would avoid a debilitating government shutdown. Only three out of the twelve bills that constitute the federal budget are even close to passage in the Senate, and the House is nowhere near passing a single bill. Leaders on both sides of the aisle have agreed that a continuing resolution, which would fund the government at current levels for a short period of time, is necessary to buy time to reach a deal on the FY 2024 budget.

However, stark disagreements have emerged over supplemental funding for Ukraine and disaster aid many wish to see attached to the continuing resolution. The Senate supports President Joe Biden’s request for $24 billion in aid to Ukraine, but members of the House GOP are pressuring House Speaker Kevin McCarthy (R- Calif.) to drop it. In response, McCarthy is considering exchanging Ukraine aid for stricter border policies on immigration and asylum that the Freedom Caucus supports. Theoretically, McCarthy has enough votes from House Democrats and moderate Republicans to pass a clean resolution; however, he has felt intense pressure from far-right caucus members to give in to their demands.

Ultimately, a government shutdown would be disastrous for the country, as job growth slows, interest rates rise, and policymakers work to avoid a recession.

HHS Proposes New Rule to Bolster Anti-Discrimination on the Basis of Disability

On Thursday, the Department of Health and Human Services proposed a rule that would strengthen anti-discrimination provisions for people with disabilities. Section 504 of the Rehabilitation Act of 1973 prohibits discrimination on the basis of disability in access to health and human service programs that receive federal assistance. The rule would update and clarify Section 504 in light of the changing legal landscape of disability discrimination. It would prohibit medical professionals from using stereotypes and biases about individuals with disabilities, as well as judgments about their value and burden on others, as bases for making medical decisions. The proposal would also create enforceable standards for accessible medical equipment and require access to integrated, community-based settings when appropriate for people with disabilities. Finally, the rule clarifies non-discrimination provisions in the child welfare space, when it comes to areas, such as parent-child visitation, child removals and placements, as well as foster and adoptive parent assessment. The public has 60 days to register comments on the rule.

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On Tuesday, the Biden administration began accepting applications for a new student debt program called SAVE (Saving on a Valuable Education). This income-driven repayment plan will determine monthly payments based on income and family size, rather than loan balance. The administration says that many eligible borrowers will pay nothing in monthly payments, while others will save about $1,000 per year. These individuals will pay about 5% of their discretionary income, down from 10% previously. This low-income repayment plan comes after numerous recent setbacks for the administration in their work on student debt relief. As part of the budget deal with House Republicans earlier this year, the administration agreed to end the pandemic-era pause on student loan payments by Oct. 1. Furthermore, the Supreme Court shot down the administration’s far-ranging student debt relief plan earlier this summer. The SAVE program is another attempt by the Biden administration to help borrowers in need. According to the administration, it has cancelled $116 billion in student loan debt held by 3.4 million Americans.

Federal Budget Negotiations Roll On

This week, Speaker Kevin McCarthy told House Republicans that Congress will likely need to pass a stopgap bill, also known as a continuing resolution. Senate Majority Leader Chuck Schumer confirmed Wednesday that he and McCarthy had recently agreed to pursue the resolution, a short-term government funding bill that could help Congress avoid a shutdown. When members of Congress return in September from their month-long August recess, there will be just a few weeks left to decide on spending bills if no resolution is passed. The continuing resolution would keep the government funded past the Sept. 30 deadline, giving the Democrat-led Senate and the Republican-led House more time to decide on the 12 spending bills that constitute the federal budget.

Congress must resort to a continuing resolution even though President Biden and Speaker McCarthy agreed earlier this year to a budget deal that would fund the government for an entire fiscal year. Since then, House Republicans proposed a budget that is $100 billion less than the brokered deal, while the Senate proposed spending $13 billion more. Leaders of both parties are urging their caucuses to drop unrealistic provisions and come to a compromise. Congress will hopefully overcome this impasse by the expiration of the continuing resolution, perhaps around Christmas. Social Current will continue to monitor the negotiation process and advocate for appropriations that are of vital interest to the social sector.

HHS Announces New Funding for Mental Health

On Aug. 23, the Department of Health and Human Services dispersed over $64 million in funding to help communities deal with the national mental health crisis. $59.4 million was made available as part of the $250 million for FY 2022-2025 in the Bipartisan Safer Communities Act, which Congress and President Biden signed into law last year. Health and Human Services Secretary Xavier Becerra said, “With these critical investments, states and territories will be able to continue to serve as an invaluable safety net for mental health services for some of the nation’s most vulnerable populations, including those impacted by gun violence, disasters, and other emergencies.” The remaining $5 million in awards will support Mental Health Awareness Training grants, which provides training for individuals and communities in responding appropriately to people with mental health challenges. These grants will help first responders, teachers, and others care for people with mental health or substance use challenges and refer them to appropriate service providers.

HHS Reports Inflation Reduction Act Reduces Health Care Costs

The Department of Health and Human Services announced that, with the passage of the Inflation Reduction Act (IRA) on Aug. 16, 2022, millions of consumers are already spending less on health care. The IRA extended subsidies for health insurance purchased on HealthCare.gov and state-based marketplaces, which led to a record enrollment of 16.4 million people during the 2023 open enrollment period. Of all signups, 90% are receiving subsidies toward their monthly premiums. The IRA also made significant changes to Medicare. Monthly insulin payments are capped at $35, saving 1.5 million seniors an average of $500 per year compared to costs in 2020. Also, more vaccines are available cost-free, including shingles, and hepatitis A and B. Finally, the IRA will implement a new out-of-pocket cap on prescription drugs in 2024, which will drop to $2,000 annually in 2025, saving almost $400 per year for more than 18.7 enrollees in Medicare Part D.

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The Biden administration has begun publicly pressuring states to reevaluate internal processes that are leading to massive decreases in health care coverage across the country. In April, states started to make determinations about whether beneficiaries enrolled in Medicaid during the pandemic could stay in the program – a process known as Medicaid unwinding. According to the Kaiser Family Foundation, almost 4.3 million people have lost Medicaid coverage since April, and 74% of disenrollments occurred for procedural reasons, like failure to fill out paperwork in a specific timeframe, rather than ineligibility based on income. There are widespread concerns that many beneficiaries abandon attempts to re-enroll due to long wait times at call centers, language barriers, and arduous bureaucratic processes that states force them to go through. Last week the Centers for Medicare and Medicaid Services (CMS) sent letters to states asking them to address procedural challenges that are stopping eligible people from continuing coverage. The letters recommended states make call center enhancements, use non-English language materials, and opt for automatic over manual renewals. CMS also urged states to implement ex parte renewals, which draw data from sources like the Internal Revenue Service, Social Security, and the Supplemental Nutrition Assistance Program, to confirm income eligibility, rather than waiting for paperwork from beneficiaries.

FDA Approves Pill to Treat Postpartum Depression

On August 4, the Food and Drug Administration approved the first pill meant specifically to treat postpartum depression. The pill, Zurzuvae, is taken once daily for 14 days to treat severe depression following pregnancy, a condition that affects about 1 in 7 new mothers. The pill could be commercially available as soon as October and appears to provide more immediate relief than antidepressants. While the cost is not yet known, experts call it a “hopeful step forward” in making treatment more accessible. Currently, the only other FDA-approved treatment on the market is a $34,000 IV treatment.

Treating postpartum depression can prevent child fatalities and advance child safety and development. Social Current’s efforts to improve child welfare, such as the establishment of the Within Our Reach office, reflect the importance of parental mental health treatment in promoting child safety. This includes recommendations for postpartum depression screening to be conducted at pediatric appointments, a practice that could now lead to mothers being diagnosed and offered a more accessible treatment if Zurzuvae proves to be successful.

President Biden Touts Value of CCBHCs

In recent weeks, President Biden has been boosting mental health care. After proposing new rules that would reinforce the Mental Health Parity and Addiction Equity Act and ensure equal access to both mental and medical benefits, the president addressed the role that Certified Community Behavioral Health Clinics (CCBHCs) play in eliminating barriers to mental health care. In remarks from the White House, Biden said, “These clinics provide a range of services, including crisis support available 24 hours a day and seven days a week, and they serve anyone who needs care, regardless of ability to pay.” In the six years since the first CCBHC opened, over 500 others have sprouted up across the country, offering access to mental health care for low-income communities. CCBHCS work in tandem with the new Crisis and Suicide Lifeline, immediately connecting people in crisis to care. In addition to the impact of health and well-being, CCBHCs led to the creation of 11,000 new behavioral health jobs across the country.

DOE Audit Finds Room for Improvement in Charter School Grant Oversight

An audit released on Aug. 3, entitled “The U.S. Department of Education’s Processes for Overseeing Charter Schools Program Grants to Charter Management Organizations for the Replication and Expansion of High-Quality Charter Schools,” aimed to assess whether the U.S. Department of Education supervised grants in such a way as to ensure accurate annual performance reports and program spending in line with grant requirements. The Department and the Charter School Programs (CSP) office had designed processes to ensure accurate grantee reporting and proper fund utilization. Generally, these processes were followed, but there were shortcomings. For example, the CSP office failed at times to comprehensively fill out Academic Performance Review (APR) forms or communicate concerns with grantees, leading to less than reliable data. The CSP office also lacked proper record-keeping, resulting in the inability to locate a significant number of APRs.

The audit recommends that the Assistant Secretary for Elementary and Secondary Education take several actions:

  1. Monitor CSP program officers to ensure accurate completion of APR review templates and effective communication with grantees about issues.
  2. Implement procedures to complete corrective action plans, detailing recommended actions and their implementation by grantees.
  3. Establish a system for retaining records that demonstrate grantee compliance with corrective actions for fund usage issues.

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