Nonprofit Services Preservation Amendment Act of 2025

The Nonprofit Services Preservation Amendment Act of 2025 increases the minimum indirect cost reimbursement rate for District-funded nonprofits from 10% to 15% of direct service costs, with annual inflation adjustments (capped at 3% more than the prior year). It requires that indirect cost payments supplement, not replace, direct service funding and mandates standardized contract language, agency guidance, and annual staff training to improve implementation. The bill also establishes a relief grant program to help nonprofits cover funding gaps, directly affecting organizations providing community services like housing, food access, youth programs, and healthcare through District contracts or grants. These changes aim to prevent chronic underfunding that could lead to staff cuts or closures by ensuring nonprofits are fairly reimbursed for essential operating costs.