I urge you to support comprehensive federal grants reform to address the barriers nonprofits face in securing and managing government grants. As part of this effort, I ask you to co-sponsor the Streamlining Federal Grants Act of 2023 (S.2286/H.R.5934) to demonstrate your commitment to this critical cause. While this legislation is an important step, it alone is not enough to fully resolve the challenges we face.

Current federal grant processes are inefficient and inequitable. Complex applications, burdensome requirements like requiring matching funds make it hard for nonprofits, especially smaller nonprofits, to access and manage transformative federal funding opportunities. These inefficiencies and inequities hinder the critical services nonprofits provide in our communities.

Office of Management and Budget (OMB) guidance published in April 2024 made some changes, like raising the de minimis indirect cost rate to 15% and removing the English-only requirement for notices, applications and reporting. However, these changes are insufficient. The guidance excludes smaller nonprofits with complex cost-sharing requirements and inadequate coverage of "indirect" costs. It remains unclear if agencies can process applications and reports in other languages. Additionally, nonprofits are generally ineligible for capacity-building opportunities through the SBA, limiting their access to support.

Comprehensive action by Congress is needed to address these issues fully, and several bills seek to change various aspects of federal grantmaking. The Streamlining Federal Grants Act is a significant step but does not fully address issues like matching funds and capacity building for nonprofits. A unified approach is required to simplify applications, eliminate burdensome requirements, ensure timely payments, and provide adequate support and training.

I urge you to support comprehensive federal grants reform by Congress and to co-sponsor the Streamlining Federal Grants Act of 2023 (S.2286) to demonstrate your commitment to this critical cause. By doing so, you can help empower nonprofits to continue their vital work and enhance their ability to serve our communities effectively.

Thank you for your attention to this important issue.