The Consolidated Appropriations Act (CAA) of 2023 became law on December 29, 2022. The law provides a total of $1.7 trillion for government projects spanning 12 appropriation bills and covering every Cabinet department, from Agriculture to Veterans Affairs. Several funding areas may be of interest to not-for-profit organizations (NFPs) that work in fields like child development, mental health, substance abuse and homelessness. The CAA increases funding for many programs addressing these issues, although it does not address all major priorities. Congress did not renew several expired incentives for charitable donations. Congress also did not renew tax credits made available during the COVID-19 pandemic, such as the Employee Retention Tax Credit. Still, the CAA provides much for the nonprofit community to celebrate. Read on to learn more about the funding provided by the CAA.
Several programs geared towards preventing homelessness and promoting affordable housing received a boost from the CAA. This includes funding for numerous block grant programs intended to help state and local governments address social and economic issues.
The CAA provides over $6.39 billion for the Community Development Fund through September 30, 2026. It allocates more than half of this amount, $3.3 billion, for the community development block grant program created by Title I of the Housing and Community Development Act of 1974. The purpose of this program, as stated by Congress, is the “development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income.” This marks a $1.5 billion increase in funding for the program.
The bill also allocates over $3.6 billion for homeless assistance grants through September 30, 2025. Of this amount, the bill makes several additional allocations, including the following:
The CAA provides over $8 billion in funding for the Child Care and Development Block Grant (CCDBG) program, an increase of 30 percent. The bill directs the Department of Health & Human Services (HHS) to use these funds “to supplement, not supplant State general revenue funds for child care assistance for low-income families.”
The Head Start program, administered by HHS and state agencies, supports children from birth through age 5, with a focus on “early learning and development, health, and family well-being.” The CAA increases Head Start funding by 8 percent to $12 billion.
Want to learn more about how LGT serves not-for-profits? Read about our not-for-profit niche here.
Several programs that help low-income families provide food for their children received funding boosts from the CAA:
The CAA reauthorizes funding for various programs that provide assistance and support for mental health and substance abuse, such as the following:
It provides $1.9 billion for each fiscal year from 2023 through 2027 for the Substance Abuse Prevention and Treatment Block Grant program, which it renames “Block Grants for Substance Use Prevention, Treatment, and Recovery Services.
Want to learn more about raising funds for your not-for-profit? Read how the new markets tax credits can benefit not-for-profits operating in low-income communities here.
If you have any questions or would like additional information about anything mentioned, please comment below or email us at askus@lgt-cpa.com.