Hundreds of Ohio nonprofits ineligible for millions in community development funds following federal rule changes

Nonprofit organizations are now excluded from what has been an important source of federal funding for community development projects, according to congressional rules released on April 25, 2024. U.S. House Appropriations Committee Chairman Tom Cole (R-OK) released guidance and associated deadlines for Fiscal Year 2025 Community Project Funding requests, sometimes known as congressional earmarks.

Nonprofits are no longer eligible for funding from the U.S. Department of Health and Human Services

Nonprofits are no longer eligible for funding through the Department of Housing and Urban Development’s Economic Development Initiative overall. The guidance for funding requests across multiple agencies’ eligible accounts for Community Project Funding can be found here. A specific and impactful change in the guidance that Chairman Cole highlighted is that nonprofits are no longer eligible for funding through the Department of Housing and Urban Development’s Economic Development Initiative (EDI). This is a significant and costly change that would have a detrimental effect on nonprofits, nationwide.

According to Politico, last year, nonprofit organizations received around $800 billion in congressionally-directed EDI grants.  

Community Solutions found at least $35 million in EDI funding for Ohio nonprofits

EDI funded projects span community development, foodbanks, domestic violence shelters and other nonprofits providing valuable services in the community.

None of these organizations, nor the dozens of other Ohio nonprofits receiving funding, would be eligible this year.  

• YWCA of Northwest Ohio for Domestic Violence Shelter Renovation
• YWCA of Greater Cleveland for Early Learning Center and Independence Place Safety Improvements
• MidOhio Habitat for Humanity for construction operations and Workforce Development Center,  
• Cuyahoga County nonprofits including Murtis Taylor, May Dugan
• Mid-Ohio Food Collective Anti-Hunger Center
• Cherry Street Mission Ministries Emergency Shelter Renovation
• Girl Scouts of Northeast Ohio STEM Center of Excellence
• Boys and Girls Club of Dayton for West Dayton Community Space Sharing and Renovation Project
• Community Action Organization of Scioto County for East End Permanent Supportive Housing Development
• Ashland Community Foundation for their Childcare Center
• Boys and Girls Club of Washington County Teen Center and Music Program

We at The Center for Community Solutions, along with partners at the Human Service Chamber of Franklin County, the Human Services Chamber of Hamilton County and Advocates for Ohio's Future urge a reversal of this decision. Nonprofit organizations’ tax status should not be held against them when seeking funding to build thriving communities.  

We urge House Appropriations Chairman Tom Cole to reverse his decision rendering nonprofits ineligible from receiving Community Project Funding dollars in the Economic Development Initiative account. If unchanged, nonprofits across Ohio and the country providing food, shelter from domestic violence, housing, and other critical services would lose access to nearly one billion dollars worth of revenue at a time when the nonprofit sector remains strained.

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