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Nonprofit leaders urge committee to fund key provisions of Nonprofit Services Preservation Amendment Act
Summary
Witnesses from the Coalition for Nonprofit Equity and allied advocates told the committee that nonprofits in DC are undercompensated and reimbursed late, undermining service delivery and racial equity; they urged the committee to fund key provisions and advance a markup.
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Iris Jacob, director of the Coalition for Nonprofit Equity, told the Committee that nonprofits are doing essential work — from housing support to youth programs — but are often not funded to cover the full cost of services. "Passing and funding this bill is not just about fairness to nonprofits, it's about protecting the residents who depend on them every day," Jacob said.
Jeremiah Allari, a resident advocate, echoed those concerns and urged partial funding this fiscal year to strengthen contracting oversight and payment practices. Witnesses described common problems: contracts that exclude indirect costs, delayed reimbursements that create instability, and workforce strain in organizations that serve low‑income and predominantly Black communities.
Chair Nadeau said the fiscal impact statement for the bill had arrived and that the committee intends to hold a markup this month. Witnesses recommended prioritizing provisions such as a minimum payment floor (witnesses referenced a 15% figure as a potential minimum to help cover overhead) and stronger oversight to ensure timely payments. The committee asked witnesses for follow‑up meetings to identify which provisions to fund first in the constrained FY27 environment.
