The bill, known as the "Hispanic and Communities of Color Nonprofit Growth and Stabilization Fund," aims to establish a dedicated fund to support community-based organizations that serve Hispanic populations and communities of color in Connecticut. Effective July 1, 2025, the fund will be composed of appropriations from the General Fund and other legally required deposits. It is designed to enhance the operational capacity of eligible organizations by providing grants for capacity building, training, and technical assistance in various areas such as financial management, board development, and nonprofit leadership. The bill defines "eligible community-based organizations" based on specific criteria, including tax-exempt status, years of operation, and leadership demographics.

Additionally, the bill outlines the administration of the fund, allowing the Commissioner of Social Services to contract with a nonprofit organization that has significant experience in supporting Hispanic charitable organizations. The nonprofit will be responsible for establishing a competitive procurement process and evaluating the performance of grant recipients. The Commissioner is also required to submit a report by January 1, 2027, detailing the fund's impact and recommendations for its future. The bill does not affect existing contracts between the Department of Social Services and community-based organizations as of July 1, 2025.