Nonprofit Priorities for American Rescue Plan Funding

Over the next month, Texas lawmakers will make critical decisions to spend $16.7 billion of American Rescue Plan Act funds to respond to the pandemic and support communities as they continue their recovery this fall. These recovery funds are intended to provide aid to “households, small businesses, and nonprofits” most affected by the pandemic. The inclusion of nonprofits as eligible recipients of these funds acknowledges both the critical role nonprofits have played during this pandemic and the struggles they have faced due to declining fundraising, changing operational strategies, and increasing public need for services. Nonprofits have remained resilient in these difficult times, anchoring communities and fulfilling their missions, often at great organizational cost.

State lawmakers have flexibility to spend American Rescue Plan dollars in a way that maximizes relief and supports the rebuilding of communities.  The nonprofit sector urges policymakers to consider these priorities when allocating relief dollars to maximize impact and spur the Texas recovery:

• Fund economic multipliers
• Leverage trusted community partners
• Create streamlined approaches to resource distribution
• Target communities most impacted
• Support the sector’s infrastructure and capacity needs