Bipartisan Bill will Invest ARPA Funding in Local Nonprofits to Help Underserved Communities Recover from COVID-19 Impacts

DENVER – Today, bipartisan House Bill 22-1356 advanced out of the House Transportation and Local Government Committee on a 10-3 vote. The bill will help ensure an equitable pandemic recovery for all Coloradans by investing American Rescue Plan Act (ARPA) dollars into nonprofit organizations that serve under-resourced communities of color and rural areas of the state. This bill is being sponsored by Representative Edie Hooton (D-Boulder), Representative Leslie Herod (D-Denver), Senator Julie Gonzales (D-Denver), and Senator Bob Rankin (R-Carbondale). HB22-1356 is being championed by the Communities Lead,Communities Thrive (CLCT) Coalition, a coalition of Colorado nonprofits serving Black, Indigenous, Latino, Asian American and Pacific Islander, LGBTQ+, rural and other underrepresented communities.

“We know the COVID-19 pandemic has been devastating for all Colorado families, unfortunately we also know that the pandemic disproportionately impacted communities of color, LGBTQ+ communities, rural communities and other traditionally marginalized groups in our state,” said Representative Herod. “By investing funding in the local nonprofits that have already been serving these communities we can have the largest community impact and get more families on the road to recovery.”

According to the Colorado Department of Public Health and Environment (CDPHE), the COVID-19 outbreak in Colorado is disproportionately prevalent among Hispanics, African Americans and Native Hawaiians and Pacific Islanders. For example, Hispanics account for 22% of the state’s population but represent 28% of cases. African Americans account for 4% of the state’s population but represent 7% of cases, and Native Hawaiians and Pacific Islanders represent 0.1% of the population but 0.6% of cases.

Communities of color also reported the largest losses of livelihood, having a harder time paying bills, and increased overall economic instability. Lower income LGBTQ+ individuals in Colorado reported accessing mental health, medical and unemployment benefit services to a greater degree during the pandemic than non LGBTQ+ persons, and LGBTQ+ and BIPOC communities reported accessing financial assistance programs to the highest degree.

“The pandemic only made existing inequities in our society deeper and more pronounced, and many Colorado families that were already struggling were also hit hardest by COVID,” said Representative Hooton. “Thanks to ARPA funding, we now have an opportunity to make a critical investment in the local nonprofits that have been a lifeline throughout the pandemic and help the entire state build back better.”

“Nonprofits often serve as the backbone of our communities, offering critical support to folks in need and helping families and individuals stay afloat,” said Senator Gonzales. “Now it’s our turn to help them. This legislation will direct urgently-needed resources to nonprofits across our state that need a hand in recovering from the pandemic, allowing them to keep their doors open and continue providing the critical services Coloradans depend on to thrive.”

Federal APRA Funds are required to be appropriated to a state office, and under HB 22-1356 would be appropriated to the Colorado Department of Local Affairs (DOLA). DOLA would then work with larger nonprofits as ‘Regional Access Partners’ (RAPs) who have grant-making experience. RAPs will then accept applications and distribute funds to eligible small community nonprofit organizations or a collaboration of groups that meet criteria for funding. Nonprofits would be able to use grants from this bill to improve their technology infrastructure, develop strategic plans, provide professional development for staff and communications, and build capacity.

“As leaders of Colorado nonprofits that work in traditionally underserved communities, we’ve seen firsthand the devastating and disproportionate impact of the COVID-19 crisis,” said Mardi Moore, executive director of Out Boulder County and Communities Lead, Communities Thrive coalition steering committee member. “As trusted voices, local nonprofits uniquely understand how to most effectively meet their community’s needs, and throughout the pandemic, many nonprofits had to abruptly shift focus and resources to support struggling families. We believe by investing our resources in nonprofits we can have the greatest direct impact and help ensure we are reaching these communities that often fall through the cracks.”

Investing in nonprofits doesn’t just help local communities, it also helps the state’s economy as a whole. Colorado’s nonprofit sector employs more Coloradans than the agriculture, mining, and information industries combined, and the nonprofit sector’s direct spending is $20 billion with an economic impact of $40 billion. In fact, for every $1 million spent, nonprofits create 10 jobs compared to 7 in the private sector.

“Nonprofits are playing a critical role in powering our pandemic recovery to ensure every Coloradan can make a comeback, including those living in rural and traditionally underserved areas,” said Sen. Rankin. “I’m proud to sponsor HB 22-1356 to support community-led solutions and build a strong foundation in our state.”

This bill will now be heard in the House Appropriations Committee.