Committee approves cap on legislative grants to protect smaller nonprofits

On June 24, 2024, the House Committee on Finance and Budget approved Proyecto de la Cámara 2099, a measure that would amend Article 6 of Ley 20-2015 (Ley de Fondos Legislativo para el impacto comunitario) to set a $400,000 cap on grants awarded from legislative impact funds.

Committee members explained the policy rationale: several large nonprofit entities have concentrated legislative-donativo awards in prior years, reducing available funding for many smaller organizations that deliver community services. The bill’s sponsor (identified in committee discussion as Representative Ángel Morey as a co-author) and the chair argued that shifting stable, recurring services into the executive budget and imposing a cap on donativos legislativos would preserve resources for smaller community groups.

The chair referenced coordination with a related Senate proposal that would allocate $1,000,000 and $600,000 to specific beneficiaries; committee discussion framed HB2099 as a complementary mechanism to ensure smaller entities are not priced out of annual donativo distributions.

The committee voted to approve Proyecto de la Cámara 2099. The clerk reported a tally of 13 yes, 0 no and 1 abstention. The chair directed staff to prepare the approved text for certification and submission per House rules.