Policy Updates for Nonprofits Self-Insuring for Unemployment Benefits

Last week, the Protecting Nonprofits from Catastrophic Cash Flow Strain Act was introduced by Senators Chuck Grassley (R-IA), Sherrod Brown (D-OH), Tim Scott (R-SC) and Ron Wyden (D-OR) to help relieve burdens on orchestras and other nonprofits that self-insure for unemployment benefits. The bill would address an administrative problem created through Department of Labor guidelines, which require nonprofits to pay 100% of their liability, before being reimbursed by the states for the 50% of coverage that was provided in the CARES Act. In both a House (PDF) and a Senate letter (PDF) to Congressional leadership, bipartisan support has been expressed for increasing the coverage to 100% for nonprofits in the next COVID-19 relief package. Learn more about this topic in this section of the League’s COVID-19 federal assistance resources.