Assembly hearing: AB 254 would create competitive community-project grants for Nevada nonprofits

Assembly Bill 254, presented on March 19, 2025, by Chair Erica Mosca and co-presenter Miles Dixon of Nevada Grant Lab, would authorize a competitive, merit-based grant program to provide state-administered community project funding to qualifying public nonprofits. The Office of Federal Assistance (OFA) in the Governor’s Office was identified in the sponsors’ amendment as the likely administrator.

Why it matters: Nonprofit organizations deliver many services across Nevada — from child literacy to food distribution to wraparound supports — yet witnesses and sponsors said the sector is under-resourced compared with similar regions. The proposed program is intended to streamline access to government-funded grants for community-serving nonprofits on a merit basis and to increase transparency and accountability.

What the bill and amendment propose: The sponsors described the measure as creating a competitive grant program administered through an existing state office (the Office of Federal Assistance). The bill text in the amendment specifies that the OFA may adopt regulations, design scoring rubrics to account for scale differences between large and small nonprofits, and accept funding from federal and other sources rather than relying primarily on general-fund appropriations.

Support and testimony: Dozens of nonprofit leaders and stakeholders testified in support, saying the program would provide an equitable application pathway and spur collaboration across the state. Supporters included United Way (Northern Nevada and Southern Nevada), Food Bank of Northern Nevada, Spread the Word Nevada, Foster Kinship, Boys Town Nevada, charter-school advocates, and many smaller community organizations and civic leaders who noted the program would help build capacity and deliver services more effectively.

Committee and agency responses: Akia Sanders, Director of the Office of Federal Assistance, testified that OFA is neutral on the program’s eventual housing but that the office’s existing role as the centralized state office for federal financial assistance and the state grant-matching program could align with the proposal. Sanders said OFA would collaborate to ensure efficiency and transparency if the Legislature designates OFA to administer the program.

Opposition and concerns: Opposition witnesses raised fiscal and philosophical objections to allocating taxpayer dollars to nonprofits, citing concerns about expanding government funding for organizations with divergent policy goals and the potential for “empire building.” One caller suggested limiting government funding to smaller percentages of a nonprofit’s revenue; another objected on the grounds that organizations already receive extensive government funding. Sponsors stressed the amendment’s merit-based rubric and accountability measures.

Implementation and next steps: The amendment identifies the Office of Federal Assistance as the proposed administrator and envisions an application and merit-review rubric that can include different criteria for smaller or newer nonprofits. The bill as amended leaves funding sources flexible, stating OFA could accept federal funds or other contributions for award pools; sponsors said they sought to avoid creating new recurring general-fund obligations.

Ending: Supporters urged passage to level the playing field and create a reliable, transparent process for nonprofits to compete for public funds. Opponents urged caution and stronger fiscal limits. The committee heard roughly 30 minutes of pro and con testimony; the transcript shows no final committee vote on AB 254 during the hearing.